Real estate investing is an investment strategy where an investor purchases property in order to earn a profit. In most cases, the investor either rent out the property, or improve on it in order to resell it at a higher cost than it was purchase for. Buying and owning a property is a lot more complicated than investing in equities and bonds. Unlike other investments, in real estate one can touch and feel the asset, and watch it appreciate over time. But like any investment, it’s better to be well-versed in the area before investing. Real estate industry in India is in the transition right now and there are many laws in the process of implementation. Now with the implementation of RERA, real estate industry is moving into a right direction. With the implementation of RERA, processes will be more efficient in the industry which will create a sustainable ecosystem. The Act is expected to infuse accountability and confidence among the buyers which will make the sector healthier for foreign as well as domestic investors. While GST is also likely to boost foreign investment and benefit the NRI community for investment in real estate because of a seamless all-inclusive channel available. The simplification of taxation is the most positive aspect of GST and it will promise well for foreign investments. It will also raise the confidence of the NRI market to invest in Indian real estate. Real estate investment in Mumbai looks promising. Infrastructural development is happening rapidly and to deal with constantly growing housing demand, city peripheries are turning to be the next ideal locations. Top real estate builders in Mumbai are offering world class residential and commercial projects.
- Real estate investment offers an opportunity to earn rental income, creating a smooth cash flow.
- When you rent out your property, you can pay the loan amount though the rental amount.
- It is also at ax-efficient investment. Depreciation of your assets can cancel out some or all of your profits, allowing you collect rental income at a favorable tax rate.
- Investor has a higher control of its asset in real estate than other type of investment. Owner can modify a house or furnish it in a way to increase its values. In case of selling the property, If the value goes up you can hustle to find a better deal. If the property value goes down, you can wait till the situation improves.
- In real estate investment, you are in for a life. Because over the period of time, property values do climb higher and higher, giving you better appreciation on the asset.
- Real estate investment is often called a hedge against inflation. During inflation the cost of living goes higher and higher. You will also demand for increased rental but the mortgage payment amount remains fixed. This will only increase your cash flow.
Don’t think that just by owning some rentals you are instantly going to begin building wealth. Real estate is powerful – but only if you work it right. Therefore, in order to take full advantage of any opportunity, investors need to empower themselves with information to guide them on how to make the best possible investment decision. It is important to evaluate the credibility of a project as well as a developer to ensure that the money invested remains secure. Additionally, you must treat it like a business and nurture it as it matures.