Can Real Estate Still Be a Good Investment in India?

Real estate investment in India has almost always been a profitable venture, except during a brief duration in the early 2000s. Over the last few years, real estate investors have made some big bucks off of their ventures, which goes to show that the benefits of investing in real estate actually outweigh the costs of managing the same. If you have already started investing in real estate, rest assured, you are well on your way to earning financial freedom but in the long run. Whatever might be the reason for you to invest your money in real estate, the intent is justifiable and it definitely helps in fulfilling your financial requirements.

All it takes is just one proper investment to get started for you. 2019 has so far been the same as with the previous years with respect to the market trends so do not keep exceeding expectations. But, with three more quarters to go in the current year, nobody can predict what is in the store for them. For now, things sure do look promising and it seems that investments made now could possibly turn out to be profitable. So if you are looking out for some realty investments, it would be better to do so at the earliest.

Better returns with less volatility:

It goes without saying that real estate demands a long period of commitment. But the longer you hold on to your asset, the better its value appreciates. It is true when people say that market price is volatile but the risk factor always remains the same. If you intend to sell the property, make sure you do it when the price seems justifiable to you. What real estate does is to give you more control on your investment so that you can utilise the property for your desired purposes. Your property is a tangible asset that could be mortgaged in time of need. The advantage is that it will still be in your name and you can reap the appreciation benefits of its capital.

Taxation benefits:

A certain percentage of people who invest in real estate do so specifically, only to utilise the taxation benefits that it gives. Under the scheme ‘housing for all’, if a property is jointly held by two individuals, both of them receive additional tax benefits at the same cost. In the state of Karnataka, if you own a house but you are not living in it, the whole interest amount can be claimed under exemptions without any upper limit. For more information regarding the tax deductions against income from the property, refer to Section 24 of the Income Tax Act.

Protection against inflation:

Inflation in India is calculated by measuring the changes in the Consumer Pricing Index (CPI). The year to date inflation rate in India in December 2018 was 5.24%. In the same year, India ranked at number 14 in the world by the yearly inflation rate. Though the numbers may seem alarming for a normal individual, real estate investors welcome increasing inflation with open arms. Why? Because as inflation increases, so do the rental incomes from your property as well as the value of your whole property. The cash flow is directly proportional to the cost of living. As the cost of living goes up, so does the cash flow.

Other benefits:

There are several other small benefits. One of them is the option to change your place of residence when needed. Yes, investing in more than one property has this benefit and you could spend a particular time of the year at your second or even third residency. Another benefit is wealth generation over time. With a steady income from rent, you could start saving that to build your wealth over a significant time, which could then be splurged on another asset purchase or be utilised for personal purposes. Investing in real estate today could help your children’s education funding a few decades later. It also helps in risk mitigation and portfolio diversification.

If that has convinced you to think of investments in real estate, the best option would be to do in the Tier-2 cities of India. Most of the Tier-1 cities in India are saturated and buying any more property in those cities would only burn a hole in your pocket. For beginners, it would not be feasible as well. That leaves us with the prospects of investing in Tier-2 cities, which are up-and-coming with respect to development and infrastructure facilities. Mysore is one of four such Tier-2 cities in Karnataka which has seen a growing trend of 44% from April 2016 to April 2018. For a rookie in real estate who plans to start his/her real estate investment career in Karnataka, investing in one of the four Tier-2 cities would be discerning. If you are looking to buy sites in Mysore, GSS Projects is a leading real estate company in the city with over two decades of experience in this field. For more details, you could visit their website,https://www.gssprojects.in/.

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Created on May 2nd 2019 06:05. Viewed 1,279 times.

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