Land and property have always been great investments and financial assets. Our forefathers knew that and spent their entire lives stretching themselves thin to accumulate land for their families, creating generational wealth. Land and real estate are not just land; they are symbols of wealth, stability, financial security, and social security for us.
Real estate is a one-time investment with the ability to generate passive income, provided it is put to appropriate use and
In today’s inflation-ridden world, more than one source of income is needed. It would be best to have an income outside of your job so that you and your family can live a fulfilling and high-quality life.
To meet your financial goals, owning land or real estate is a great way to generate wealth from your savings that might otherwise be eroding in the bank, struggling to keep up with inflation.
Investing in real estate?
We have to be open to new opportunities and calculated risks to grow our wealth, and if done right, it could build a lot of cash flow into our savings. Some of the reasons for which you should consider investing in real estate are as follows:
1. Your investment can be monetized to your benefit and be an income-generating source soon after purchase as a rental space for housing or commercial purposes.
2. You can enjoy many tax advantages, especially if you rent the property out for residential or commercial use.
3. Higher rates of profit when it comes time to sell because the land’s value has appreciated.
4. Buying land can expand your assets and allow you to explore other options to increase your wealth.
5. The cost of land and property that appreciates over time can offer a great value to your asset and a higher value when sold after a couple of or several years.
6. everything, including real estate, rises as an economy grows. This increase in the price of real estate is met with increased demand, and if you own a residential space that can be rented out, it can help tide over that inflation, a process called hedging inflation with capital gains.
7. You could generate generational wealth that can be passed down to your family and even start a family business that can continue for years to come.
8. Real estate can help diversify your investment portfolio. Keeping all your eggs in one basket can be tricky, especially when it comes to money. Investing in stocks and bonds is excellent, but they are subject to market risks. However, albeit slowly, real estate always tries to grow even faster in a growing economy like India, giving you a stable source of income or profit on sale.
9. You can also flip property. Flipping a home or a space means revamping it entirely and then selling it for a higher price to make a substantial profit.
What are some tips for investing in real estate?
If invested correctly, real estate property can give you huge returns over time. While buying real estate, you can do the following:
1. Invest in a property closer to the main road and has better connectivity to the rest of the city.
2. Invest in a property close to an already-thriving area or one coming up because of a significant development project that will generate employment. The closer a property is to a commercial area, the higher and faster its value appreciates over the years.
3. Buy at the right time when the property prices are more on the lower side of the bracket.
4. Buy real estate where there is also scope for tax savings.
5. Do your homework and become aware of the risks and benefits of investing in a particular piece of land.
6. Take advice from those experienced in real estate investments to make a better and more informed decision.
7. To reduce the duration and amount of the loan on the property, try to make at least 20–30% of the payment for the property as a down payment.
8. Have more cash as a reserve to maintain the property in its best state before selling it.
9. Be aware of the rules and regulations regarding building over an additional floor above an existing property, as it might not even be legal or need a permit.
10. Diversify your real estate investment. It can be a flat, a villa, a storage unit, an office space, or anything else. When one type of investment doesn’t yield good results, the other one does.
Things to keep in mind while purchasing real estate
Purchasing real estate only guarantees a profitable investment. It needs to be a careful and well-thought-out decision, considering several factors that could influence the value of the property even later in the coming years when you would want to sell it to make more profit.
A well-researched investment in real estate can be made by considering the area, the people around it, the demand for rent, the possibility of rent, or, if it is a commercial space, the demand for the product in the area.
Focus on purchasing property that requires low investment and maintenance costs but is in a good area with good business opportunities.
