Real Estate v/s Other Investment Options- which is the favourable option to invest this lockdown?

The first question arises in the mind of every investor before beginning his/her investment journey is where to invest. Should I invest in real estate or mutual funds, or will gold be a better investment choice than others?  Equity Funds, SIPs, stock market, etc.- the list is infinite.

Lockdown has made people more risk-averse than ever. Buying the hard-earned money each into Mutual Funds or stocks these days is supposed to be a riskier option. On the contrary, Real Estate has become a popular choice among investors.

Reasons are for real:

Fixed Income

Mutual funds & other investments are significant for investment. We put in the excess cash, and the returns are variable. In contrast, an investment in Real estate allows us to own a physical asset that has the potential to appreciate over time & provides a passive income stream.

Appreciation

Investing in other kinds of investments depends upon the market how well it is performing and other factors as well. If the market is slow, chances are you may not be able to get the desired returns.

However, in Real Estate, one is not only investing and but also yielding a much higher return in the long term. It also provides the opportunity to generate monthly cash flow through rental income.

Safety and Security

The most crucial aspect that is looked into is the safety and security of the investment. There is an inherent demand for real estate, whether it is home to an apartment or retail space. It protects your wealth. Whether the real estate market goes up or down, it has never declined over time.

Tax Liability

In India, tax efficiency is a big booster for investment. Real Estate Investment has its tax benefits. If you avail a home loan, you can claim a tax deduction on both the principal and the interest amounts, somewhere different categories between 2.5 lakh and 3 lakh. It means you can deduct the reasonable costs of owning, operating, and managing a property.

Real Estate doesn’t tie up a lot of cash-

Real Estate properties is a bankable asset, so one can always leverage it. One can invest as little as 10-15% and use the bank money to grow your investment. Recently RBI has reduced both the key policy rate, i.e. Repo Rate & Reverse Repo Rate to 4% & 3.75 %. It means lower interest rates which are like free money. The good thing about real estate is that the investment cannot disappear overnight, unlike the stock market.

Real Estate comes with unlimited options-

Real Estate is always a great investment choice as you have more options than others.  Investing in stocks, bonds and equity offerings, the success depends upon the factors that are not in your control. With real estate, you can buy a house at first then rent it out if the market turns south. You can also buy a rental that appreciates then sell it off. The flexibility that a real estate investment comes to build more millionaires than ever.

Thus, all in all, Real estate has always been the “king” of all assets. Over time, one will ever get value from real estate that produces sure-shot income. It is the best investment that one can make today. Hurry, Book your Unit in 0% Booking Amount with Charms Castle, Raj Nagar Extension, Ghaziabad.