Why invest in Property

Why invest in Property

 

Real Estate has many advantages over investing in mutual funds stocks or bonds. Real estate offers predictable cash flow; it appreciates in values, thus keeping up with inflation; it provides a higher return because of positive leverage, and it offers equity growth through debt reduction.

There are solid reasons why you must invest in real estate. But, before going into them let’s have basic info of real estate & its types

Real Estate :

Simply it is"An Estate which is Real"

It is broadly classified into 4 types.

  • Residential Real Estate
  • Commercial Real Estate
  • Industrial Real Estate
  • Land Real Estate

Let we tell you what benefits does a real estate investment provides you. Then decide why you must invest ?

1. Steady Rental Income:

One of the prime reasons why you must invest in real estate. When you own a building or flat you will get steady monthly rental income. There will be very less effect on it even in inflation time also.

2. High Tangible asset value:

As you have the asset (land or house) in your hands, there will be always a value for it. Of course, there will be price appreciation & depreciation due to market fluctuations but when we compare it with the other investments like stocks its far safer and steadier.

3. Portfolio Diversification:

When you start investing, its very important to diversify your investment portfolio to reduce the risks that arise out of your investment. The real estate is one such a kind which has the ability to diversify your portfolio. As aforementioned, it is classified into four major types which are further divided into more subcategories. So, you find plethora of options.

4. Creation of wealth:

Over the years, real estate proved as a powerful vehicle for wealth creation. By keeping it as security you will get quick loans from banks or any other financial institutions.

5. Quick Recovery:

Unlike other investment options, real estate recovers faster and appreciates overtime. The longer you hold on your real estate investment the higher the money you make.

6. Demand increases the price:

For example say you have a house in an area where the government has proposed a new hospital. Suddenly you will see a demand for the locality and obviously a price appreciation for your house.