Real estate has been one of the most conventional forms of investment since time immemorial. Traditionally associated with prestige, status, wealth, and credibility, Real estate is also regarded as one of the safest and most profitable ways to preserve wealth. It also helps that, unlike other modes of modern investments like stocks, bonds, mutual funds, cryptocurrencies, and fixed deposits, real estate is resistant to abrupt stock market fluctuations.
Being a designated hub of major MNCs, cities like Hyderabad drive real estate growth exponentially. Real estate has been seeing tremendous growth after a reduced demand during the pandemic, and this upward trend is expected to continue. Reports indicate that India’s real estate market is expected to surpass 13,00,000 Crore by 2023. This article takes a closer look at five key benefits, importance, and relevance of real estate investments and why 2023 is the best time to invest in real estate in India.
Cash Flow Generation through Rental Income
Since it is a tangible asset, one of the most significant advantages of real estate is the ease at which it can be purchased and its ability to generate cash flow. Besides, rental income is an excellent incentive and provides financial security to the investor. In many cases, cash flow visibly strengthens as you build equity and scale down your mortgage. As the value of real estate increases, rents increase, thereby generating higher cash flow.
Value Appreciation & Leverage
ad investment. Compared to other modes of investment where losses are inevitable, real estate extends refined control over one’s investment. Another vital advantage of real estate is leverage. Leverage essentially means borrowing capital to fund your real estate investments. Since the property is a tangible asset, it can also be leveraged to capitalise on various revenue streams while enjoying the perks of appreciation. With time the value of the property will keep increasing, thereby increasing ROI (return on investments).
How good are investments without tax benefits? Did you know that investments in real estate help cut overall taxes? Additionally, the government offers tax breaks for depreciation in the property, insurance, repair, and maintenance purposes. Real estate investors are also charged lower tax rates for long-term investments. If not the most, tax deductions are one of the biggest attractions of real estate investments.
Return on Investment
In today’s times, the world doesn’t function without prioritizing ROI. In the majority of Indian states, real estate returns surpass inflation rates. This offers long-run real profits. With RERA coming into the picture, the entire investment process gets re-structured. Established legal procedures like registration, stamp duty, etc., need to be taken care of to eliminate theft and fraud.
Safety and Security
Apart from being relatively safe, unlike stock markets, crypto, and bitcoin, Real estate has witnessed consistent growth in the last decades. The introduction of the Real Estate Regulatory Authority (RERA), reduced home loan interests, and lower stamp duties (in some states) have played important roles in boosting sales in the real estate sector. Real Estate prices are steadier and less prone to shocks, unlike stock markets and crypto. This, of course, comes with certain pre-conditions like the absence of delays, a trustworthy developer, and due planning.
As mentioned above, Real estate is easier to buy and convenient to finance alongside proven tax advantages and a guaranteed improvement in lifestyle. Things have, however, remoulded in the real estate sector post-covid. There is a rampant increase in the desire to own a property for oneself as opposed to renting nowadays. Large-scale office-space leasing has also become common, especially for E-commerce and third-party logistic companies.
Investing in real estate is, however, a major decision. The real estate market is vast, flexible, and equally adaptive. If you’ve made up your mind to invest, a trustworthy builder is your immediate necessity. Who better than Ramky Estates, one of the top-ranked builders in Hyderabad, to handhold you through the entire investment process if need be? This financial year 2023, let your primary real estate goals come true with Ramky Estates by your side. Check out all the ongoing and ready-to-move-in projects on our website. Contact us to learn more about the best builders in Hyderabad!