Real estate is an ideal investment for long-term holders. If you approach real estate investment it can be profitable and a very reliable opportunity to gain substantial returns it creates a regular income flow while supplementing your portfolio with benefits like tax benefits, diversification, and less risky investment choice.
The size of investment in real estate is huge and land is an unlimited source and has a growing potential with exponential prices. The people who hold the property for the long term gain high returns. This is the best way to produce regular monthly income in the form of liquid cash. You can gain monthly rent or a lump sum amount during the leasing too. A part of this money helps you to pay the mortgage.
Real estate offers less liquidity compared to gold. It also shows very low volatility while selling as compared to gold and other options. Real estate can gain from tax benefits too. There will be depreciation, tax benefits, mortgage tax deduction, cost of repairs and maintenance, and legal charges all these are considered while calculating the tax.
The trace back of history says the returns in real estate start from 8% and can go up to 15% and sometimes higher than this. The rental yield in India is7 to 9%, lower than other investments. On the other hand, it can produce passive income every month, which gold investment cant. The property value surely increases over time. Without huge volatility, it produces great returns.
When the market improves, so does the property value. As a strategy of overall wealth creation, it is wise to invest in the real estate market. The government also supports and provides many subsidies in investing in homes.