Why investment in real estate ensures good ROI?

by Dynamix Group Writer

Real estate investment is one field of business which can either make the returns worthwhile or can lead to a big loss. In India, the highest boom in real estate was seen a few years back when property transaction used to be the biggest market. This led to the construction of many housing, commercial and renting projects.

The business, however, became stagnant for a while due to demonetization and with the introduction of new GST laws. The market for property purchase and sale may not be at the peak as of now but with new amendments in various housing and tax laws, the future of real estate investment seems bright. As per Nabil Patel of DB Realty, real estate business is only going to get stronger in India with a steady rise in both housing and commercial projects.

There are hundreds of residential projects currently being worked upon in the whole country and many of them have been booked already. The growing demand for small town people to live in the larger cities or at least enjoy the standard of living of the larger cities is prompting them to move.

Why investing in real estate?

The prime reason for which people purchase property is very similar to that of stock market—big returns if invested wisely. If you ever happen to stumble upon Nabil Patel Wikipedia page or any other credible site, you can learn more about how real estate investment ensures good ROI.

The property is purchased and waited upon before selling until there is a general price hike in the market. Like in the stock market people anticipate the price hike of a particular stock before purchasing it. The property purchase also works on similar anticipation. Sometimes it pays, other times it doesn’t. Although there is always some risk involved, still this business has earned profit to many.

Also, people purchase new flats and houses so that they can rent it to tenants which can become a constant source of income. People even invest in properties at the risk of taking loans from the banks. The loans are later repaid with cash flow from the tenants. This always turns out to be a long- term investment. If the property is situated in a good area, the rent would be equally high for them. And the rent keeps on increasing per year for the same tenant, hence this type of business always sees a rise. The maintenance cost depends on the quality of tenants you are having.