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Five Advantages of Real-Estate Investment

A premeditated and adept move of making an investment in a real estate can yield life-changing benefits that can be reaped by not only the current generation of a family but also the forthcoming ones. A typical Indian household can diversify its investment portfolio into various areas such as stocks, gold, bonds, mutual funds, crypto, however, real estate investment still holds more than 75% share in the total asset values. Since the demand of flats in Jaipur is on a rise, it makes a great investment opportunity.

Be it domestic or corporate, purchase of a property yields several benefits. Let us take a glance at the advantages of investments in real estate: 

1. Appreciation of Value: The value of real estate is subject to appreciation since the land is scarce, and it appreciates more with time and location of the property. It is a great investment as it increases in value in long term, which enables the owner to gain profit on the sale or rental of properties in future or whenever the need arises.

2. Decent Return on Investment (ROI): The ROI in India for real estate has surpassed the rate of inflation in India. Rental property revenue can help investors recoup their costs and put money in own wallets by providing a consistent monthly income. The chances of frauds and stealing are lower in real estate. Luxury flats in Jaipur can yield a greater ROI with the increasing demand of aesthetic living spaces.

3. Cash Flow: Cash flow is the amount left over after paying your debt, taxes, insured sum, and any critical repairs as well as collecting rent. One of the finest ways for investors to produce cash flow is through real estate. The initial investment cost is repaid over time and a profit is realized. Residential rental yields can range from 2% to 4%, while commercial rental yields can reach 6 to 9%. Flats for sale in Jaipur provide a great investment prospect for those looking for rental income.

4. Tax Benefits: Numerous tax benefits and deductions are available to real estate investors. The reasonable expenses associated with owning, running, and maintaining a property are often deductible. Up to INR 1.5 lakhs can be saved on the principal amount of a house loan under section 80C, while section 24 allows deduction of the amount of interest that must be paid, by up to 2 lakhs. It will lower taxable income significantly while making real estate investing relatively inexpensive. One can seek calculated tax benefits on apartments in Jaipur with calculated and smart investing. 

5. Leverage and Equity: You will have to pay interest on any money you borrow to close a real estate transaction, but every payment also brings you that much nearer to finishing off your principal payments. You can increase net worth while paying off debt on the property. Additionally, if one raises the wealth and cash flow through the purchase of additional properties, they have greater leverage to do so, which helps in enhancing the buying power. For purchasing a property worth 1 crore, put down 10-15 lakhs and take a loan for the remainder to cover the purchase. This way, you might become the full owner of the asset with 10% to 15% of the investment.

Real Estate is a great asset to diversify investment portfolio and improve risk-and-return profile. Over the years, positive returns can be gained once the initial investment is cleared. We focus on guiding our customers to the best suited properties while realizing their intent of investment in real-estate!