Is Real Estate a Good Investment Option?

Published on: 11 Jan 2024

Is Real Estate a Good Investment Option?

With low-interest rates, a cut in stamp duty, and the favourable work-from-home culture, the real estate residential sector is booming in spite of the global pandemic. Homebuyers and investors are looking at this sector in a new light and as a long-term investment option. Will this trend continue to emerge and help real estate rise to the expectations of the buyers and investors? Let’s find out.

Though the past few quarters have been disappointing for the residential sector, experts believe that the Indian real estate market is in its recovery phase, thanks to initiatives taken by the builders and government to promote projects. Complementing this, there are several reasons why this industry will continue to grow:

Compared to the stock market, real estate is risk-free:

The fluctuations of the stock market are many as compared to housing, and investing in stocks is risky and requires specialized skills. Comparatively, real estate can seem attractive to a new buyer with basic knowledge of purchasing.

Real estate will give you good returns in the long run:

As the population grows, the demand to own land will keep growing, though the supply of land is limited. As demand continues to grow, owning real estate at the right time can yield very good returns, whether you wish to buy or rent it

A home assures rental income:

One of the biggest benefits of owning a home in any location is the ability to rent it. Unlike the stock market, homes at good locations can be easily rented as market forces may affect only the price, but not the demand for good housing.

A home will avail you of tax benefits:

Homeowners can take advantage of the mortgage interest paid on the loan, maintenance expenses, depreciation, real estate taxes, homeowner’s insurance, etc, as tax write-offs.

Although beneficial, every investment may come with its disadvantages. For real estate, these disadvantages and risks include:

• Purchasing a home comes with costs associated with property maintenance.
• A house is a source of high investment that involves mortgage payments.
• Appreciation of property will vary depending on demand, location, infrastructure, basic property features, etc.
• Homes are immovable assets that cannot be liquidated immediately.

Choose your investment wisely:

In today’s times, thorough market research, background check of the developer, analysis of infrastructure, project quality & cost, location, and affordability must be carefully assessed in order to make a smart investment. Another important aspect is the evaluation of the site and the house/flat with several projects at different times of the day.

After a home is shortlisted, apply for a home loan and ensure you have a good credit score to avail of it. You can compare home loan interest rates with various banks and reach out to the right real estate guide to know more about developers’ discounts and government policies. A good real estate consultant will also help you get the best deals on your dream home.

With the real estate market emerging as a good investment option for several buyers, you can choose from various ideal projects in Pune. Make the most of this opportunity and book a house of your own today, with the expert help of EstateMint.

Contact us today!