Among several investment options like stock, equity, bonds, gold, etc., real estate is considered the most trustworthy. Stocks may fall, and gold rates could plummet after a seasonal surge. But real estate is perhaps the only sector that has never seen a significant down wave. Hence, it is considered a very trustworthy investment option. Let’s look at eight reasons why you must invest in real estate.

8 Reasons that Make Real Estate a Promising Investment Option

From continual appreciation to tax benefits, investing in real estate can benefit you in many ways. It is a strategic step that helps you multiply your wealth by practically doing nothing but only maintaining the property.

1. Quick/Steady Appreciation

The land is a limited resource. Hence, it is a valuable one. It enjoys appreciation every year. The rate may differ. Sometimes it could be very high, while at times, the market may cool down to let the appreciation rate plummet to some extent. Nevertheless, in either case, owners enjoy a certain rate of appreciation.

All other investment options may recede at times based on the market situation. The real estate sector isn’t fully immune to market ups and downs. But it is probably the only one, the value of which keeps growing by the year. So, a property like a plot, apartment, detached home, etc., is a useful and reliable asset.

2. Monthly Rental Earnings

Investing in real estate can help you earn a steady monthly rental income. Whether you buy a commercial or residential property, you can rent or lease it out to the needy and earn monthly rental income.

Thus, your property doesn’t sit idle like a non-performing asset. It keeps generating wealth for you. Nonetheless, you must try to market it to avoid keeping it vacant for a long time.

3. Financial Security

Real estate provides the owners financial security with rental income and steady appreciation. The more the number of properties, the higher the financial security. As an owner, you can always bank upon the property and the returns you earn from it. It proves useful, especially during financially tough times.

4. Tax Benefits

With real estate investment come various benefits. You do not have to pay any self-employment tax on your rental income. On the other hand, the government offers tax breaks for insurance maintenance, legal fees, repair costs, property depreciation, and mortgage interest. You would enjoy lower tax rates for your long-term investments as a real estate investor.

5. Investment Leverage

Another very vital benefit of investing in real estate is investment leverage. You can own property by paying a fraction of the total amount and borrow the rest from a lender to pay it in installments.

It means you pay about two lakh rupees for a property worth 1 million and get it registered in your name. You haven’t paid fully for it yet. Still, you own it! So, you don’t have to drain your bank balance to buy a property. Pay a part of the total cost and keep the rest of your savings to address emergencies or other needs.

6. Sustainable Returns

The appreciation rate of your property may increase or decrease based on the market situation. However, depreciation is a rare instance in real estate. You continue earning a steady and sustainable income from your investment. But while property appreciation is one aspect, an annual increase in the rental earnings is another promising source that helps you grow your income.

7. Tangible Asset

A property, home, or piece of land is the most prominent of all tangible assets. You can leverage it to capitalize on various revenue sources and enjoy yearly capital appreciation. It refers to a high tangible asset value that provides sustainable security, as the property will always carry a value.

8. Build Wealth for Posterity

A piece of land or a home is something for which your generations will thank you. It is probably the best materialistic thing that your generations can inherit from you. The financial security you enjoyed will be passed on to posterity.

Real estate’s career prospects are as promising as investment ones. The sector is one of the fastest growing in the country. With the country growing exponentially across the infrastructure front, real estate will prosper in the future.

IREF helps you qualify as a value-driven real estate professional. Our course curriculum, trained faculty members, and unique approach transform aspirants into qualified professionals or entrepreneurs. Click here to connect with us and learn about our various real estate courses.