Is investing in Real Estate in India truly profitable?
Real investment in India has gained momentum in the last few years. Not only people living in India but even NRIs (Non-Residential Indians) have turned to real estate to invest their hard earned money. However, a question that many have in their minds is whether investing in real estate in India is profitable or not. The answer to this question is yes. There are several benefits of investing one’s money in real estate. Some examples of real estate properties include residential property, commercial property, hotels, hospitals, educational institutions, etc. Let us find more about the benefits of real estate investment in India.
Investing in Real Estate in India
Better returns:Real estate investment is a field that guarantees better returns for the money invested. The past few years have seen returns of almost 10-12% in the real estate market. Moreover, as per the trend observed in the last few decades, this is surely going to increase.
Easy availability of funds: Almost all major banks in India are ready to provide funds to people who show willingness to invest in properties in India. You can definitely acquire a housing or realty loan from banks like HDFC, Kotak Mahindra, ICICI, etc. In such cases, you do not need to have the entire amount with you, but can take a loan from the bank and repay in parts
Potential for earning money: Due to inflation, not many people are able to actually buy their own property. This increases the demand for rented houses and offices, helping you to earn an income on a regular basis. Also, while the rent of your property is likely to increase regularly, this may not be the case of the mortgage or EMI that you have to pay to the bank. This way you can enjoy a steady cash flow to your bank account.
Tax benefits:Investment in real estate in India can help you to save tax deductions from your salary. When you own property, you can avail several tax benefits like HOA dues, repair interests, etc. Tax benefits are also available on the interest rates of housing loans in India
Appreciation: Real estate investment guarantees to provide appreciation for the money invested due to several reasons like capital improvements, supply and demand, inflation and such other factors. The property value increases over the years, thus aiding you to sell and reinvest in higher value properties to receive higher values.
Apart from all these reasons, support from the Indian government is also another reason for investing in real estate in India. The government has taken several progressive measures that have increased real estate investments in the country.
Investment in real estate in India is definitely profitable. However, it is important to be careful when you make the investments. Hence, do your research well and invest in good properties where you are sure to receive good returns.