A lack of acquaintance with gold investment and stocks might drive your efforts in vain and derive zero profits, so it's wise to look for the best options. Every investment has pros and cons, but real estate is the only choice where the pros cover the cons and become a harbinger of hope, even in troubled times.
Here are a few points to get you accustomed to both advantages and disadvantages of investing in real estate:
Advantages of Investing in Real Estate
Sense of Security
Purchasing real estate won't keep you concerned with often checks, and decision-making as the price does not fluctuate now and then compared to other investments. Real estate is a palpable investment that has economic value. You can enjoy your investment by either using it for your own or letting it out.
Generates Cash Flow
If you are scheduled to invest in Real Estate, you can either invest in a residential property or a profitable property. Leasing out the features assures you of monthly cash flow per the property site.
Home Loan Tax Benefit
Home loans permit multiple tax benefits which significantly help you to reduce your tax outgo. Indian government always inspires the citizens to make an investment in residential properties, home loans are qualified under Section 80C for tax deductions.
Simple and Controlled
Real estate is a forthright and secure investment that confirms a stable one. It also gives the investor complete specialists about each and everything involved in the venture. As the investor is in charge of the property, all the decision-making and outcomes fib in their hands.
Property Appreciation
When the market charges are rising, and the property rates escalate, you can make a quick selling decision. Real estate values tend to change and increase over time and can help you earn marvellous profits when it’s time to sell. Real Estate investment is innocuous as it promises a stable cash flow.
Disadvantages of Investing in Real Estate
Professional help required
Investing in real estate and getting the property registered in your name is a lengthy process. A lot of documents are obligatory to be succumbed as per the RERA Act. Following these legal steps and buying a real estate property can really get stimulating for one. So, it’s always better to seek assistance from Real Estate agents or legal advisors to complete the entire buying process.
Time Commitment
While purchasing a real estate property, the initial time has to invest keenly and carefully in property stalking. It is energetic to go for site visits and to see every corner of the property before making a buying decision. Background drafts and price evaluation also involve a time commitment to figure out a perfect deal for the investment.
Maintenance Cost
Even though you purchase a property and rent it out to a tenant, the owner is liable to pay the maintenance cost of the property. The conservation cost of the property varies on the kind of property you have purchased. With these fixed prices, there are high entry and exit costs involved as well. Property registration charges and stamp duties differ from state to state as per the RERA procedures.
Less liquidity
Selling Real estate isn't simple. You just cannot pursue help from a broker and directly get a deal for your property and get it sold for cash. Real estate is a long-term investment associated to any other investment. Selling Real Estate is a bit time-consuming and involves monotonous bank transactions.
Property Tax
People usually prefer purchasing residential properties over commercial properties. The primary reason is, commercial properties have fewer tax incentives compared to residential properties. In case you take a loan, for payment of this commercial property loan there is no tax benefit of the EMI paid.
Conclusion:
Estimate both pros and cons before taking any investment decision as investing involves a lot of limits to give you fruitful results.
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