8 Factors That Make Real Estate in India a Good Investment Option

There was a time when real estate investment was treated as a luxury in India. However, currently the real estate sector in the country is a field that has been tried and tested, and has been at the forefront of many successful investment opportunities.  

By investing in this sector, investors can pave a path for long-term yields. If you are looking for reasons as to why you should invest in real estate in India, mentioned below are certain points that you need to consider:

1. Abundance of Options

Usually, finance is one of the first concerns when people think about how to invest in property.  If finances is what you are worried about, then you should know that there are ample options for financing available to those interested in real estate investments. These options range from banks, private lenders to non-banking financial companies.  

2. It is Safe

No one likes to make an investment that is doomed to fail. Thankfully, real estate investment is one avenue that if done right has fewer risks than other popular forms of investment. Unlike shares or stocks, the price of a real estate property does not change drastically in a short period of time. This ‘stability’ makes real estate safer to invest in for a longer time period.

3. Suitable to Different Types of Investors

One good thing about investing in real estate is that there is something available for all kinds of investors. If you are someone looking for a source of continuous income, then properties with good rental flow are options you can consider. Similarly, there are options for those wanting long term capital growth or updating their portfolio.

4. It is a Controlled Asset

Unlike investing in stocks or shares wherein you might need the help of a broker, real estate investments aren’t as complex to make. You can simply refer to websites dealing in properties that serve as one stop shops for all kinds of real estate properties in an area. If you have sought property investment advice at the time of buying, the onus is on you to stay on top on matters after you take ownership of the property.  

5. It Grows with Time

The thing about real estate assets is that they never stop growing. After purchase, they continue to yield returns, the increase of which may vary depending on the property location. It is for this reason that people often use real estate investments for creating their post retirement backups. They can leverage the rental income for as long as they want and then sell the property for a lump sum.

6. Profits from Other Ventures

Real estate properties also benefit highly from other ventures happening in the neighborhood. This means that any new infrastructural development like a business center, shopping complex or metro line is bound to augment the price of your property manifolds. Factors such as those mentioned have been known to boost housing demands after all.

7. It Serves as an Inheritance

For years now, people have been passing real estate properties to their younger generations.  You don’t always have to sell off a property that you have invested in. If well-positioned, it could serve as source of income for your children and their children too. That’s because real estate properties grow in value over time. Also, if it is a plot of land that you own, it won’t undergo depreciation with time, and will be easily liquefiable. 

8. You can Reap Tax Benefits

Owing a property in India entitles you to a rebate on the tax you pay. Property owners can get up to a maximum of Rs. 1.5 lakhs of deduction on their taxable income under Section 80C, in a financial year for repaying the principal amount of their home loans. However, for the above to stand true, they should not sell the property in first five years of possession.  

For a self-occupied property, owners can get a greater deduction of up to Rs 2 lakhs per annum (an additional 50,000/- under Section 80EE), if the construction or acquisition of the said property has been done within three years from the end of the year in which the loan was taken.