When it comes to choosing a profitable investment option that has a high ROI potentiality, then investing in real estate is the first option that strikes one’s mind. This type of investment is only one of its kinds as you can pay the maintenance cost with others’ money while being the sole owner of the asset. To better understand, you can rent your property and pay the mortgages or loans with the rent amount while renting a property doesn’t harm its owner. We have summed up 15 advantages of investing in real estate that are enough to convince an investor to take the right investment decision. So, without further ado let’s dig into the list of advantages.
1. An Easy-to-Start Option
If you are thinking of investing in a property then you can easily invest in any of the renowned upcoming projects in Noida Extension, Mumbai, Delhi, Kolkata, Bangalore or any other places without having any specialist knowledge. Just make sure that the property you are investing in is located in an easily accessible place to get the highest ROI.
2. Takes Minimal Research
You don’t need to research a lot to invest in a property as you need to do while investing in stocks or shares. You can also opt for the cooperation of any well-known real estate investment consultant who can suggest you invest in the best residential property in Noida, Delhi, Mumbai, Bangalore and other feature-rich cities.
3. Easily Available Financing Options
A recent research shows that lenders are more interested in providing a home loan with lower interest rates than any other kinds of loans. The same is applicable for commercial properties. So, it’s comparatively easy to get a loan to invest in a residential or commercial property.
4. Comes with the Option of Renovating
As we all know, a thing that looks good, sells well. This is not a case of exception in properties also. You can buy a tired property and save some pennies there and use the savings to renovate the interior and exterior of the property as per your choice so you can sell it for a way higher price.
5. Fully Controllable
Unlike investing in share market which involves third parties, real estate investment is totally under your control as you are the sole owner of your property and you can rent it, sell it, or keep it to grow.
6. Never Ending Demand
The demand for properties is an ever-increasing one as it is directly proportional to the increase in population. Both the demands for owning or renting a property are the indicators of real estate investment success.
7. Can be Subdivided
A property when bought can be subdivided into parts. You can divide a property into two or more parts by building dividers in between. Once divided, you can rent or resale any or all of the parts for a higher return on profit from the same property.
8. Can be Passed to the Inheritors
You can easily pass your owned property to your inheritors as per the legal structure. You can make a will with the help of a lawyer which can be put into practice before or after your death which will be the legal evidence of the property ownership handover.
9. A Source of Passive Income
Only a real estate investor knows the impact of real estate investment in risk-free passive income. Once you plant the seed, it will eventually grow with time. This can be a peaceful retirement plan as after you got retired you can sell it down or live on rental income.
10. Increased and Steady Cash Flow
Generating long-term income is a fundamental advantage of real estate investing. If you are thinking of taking a loan to invest in a property, then you don’t need to worry about loan payment if you plan accordingly. You can generate sufficient income to pay out the loan and make future savings. And once the loan is fully paid out, you are all set to save the full income from your property for yourself. Many people are living happily with this lucrative income source.
11. Tax Benefits
A property comes with several tax benefits. Some of them include tax deduction on operating costs, operating expenses, mortgage interest, insurance and several other benefits. Even when your property value appreciates, you can enjoy the tax benefits on depreciation value.
12. Renewable Source of Capital
Real estate investing provides you the option of renewing the source of capital. The value of mortgage financing decreases and the value of a property increases over time. It provides you the option of refinancing to renew the capital source.
13. Offers a Diversified Portfolio
Investing in real estate adds the taste of diversification in a portfolio. As real estate investment is a matter of long-term success, it decreases the chances of portfolio volatility as compared to the other classes of major assets. As per the stats, it provides a higher return per unit of investment risk.
14. Ever Growing Appreciation
One of the lucrative advantages of a property is its ongoing appreciation. The value of a property mostly appreciates over time. You can buy a property and leave it as it is and after some years you would see a hike in the value of your property in most cases. This nature of a property makes property investment a most sought after long-term asset.
15. Inflation Hedging
The goal of capital appreciation can be easily met in case of real estates by introducing any inflationary rule. For example, when the demand for a property raises, the value of the property also increases. And when a property meets a hike in demand, the rent of the property becomes higher.
After discussing the advantages of real estate investing, it is needless to say that how real estate investment can give you the highest risk-free return on investment. If you are thinking of investing, then you can consider real estate investment without a second thought.