Considering The Top Reasons For Real Estate Investments in India

Investing in real estate was once considered a luxury, a way to improve one’s social standing rather than a necessity. However, in this age of globalisation, investing your money in real estate is necessary and one of the most tried-and-tested ways to grow your money in the coming years.

People purchase residential properties for either investment or personal use. If you decide to invest in residential projects, you must acquire a variety of benefits. Though investing in residential projects may appear complex or confusing to first-timers, once you decide to do so, you will be able to reap the following benefits:

1. Low Risk & High Returns

The real estate market of India has low risk but high returns.

The Indian government has also actively begun to participate in the country’s real estate sector. The residential sector, specifically, is expected to grow exponentially, with the central government getting eager to build affordable housing in urban areas. The growth in residential areas will gradually increase demand for commercial and retail real estate properties and their development.

Taking advantage of and making the most of the real estate sector is thus now a wise investment. 

2. Gain Tax Benefits

Investors in real estate can take advantage of multiple tax write-offs, just like every other business owner. When you own a house and rent it out to tenants, it is not only an investment but also a business.

As a business owner, you can deduct mortgage interest, origination points paid on the loan, maintenance expenses, depreciation, real estate taxes, HOA dues, etc.

Also, please refrain from assuming you can write off expenses before talking to your tax advisor, but know that investing in real estate in India can indeed be beneficial.

3. Efficiently Obtain Financial Assistance

You may not realise it, but financing a residential property is relatively simple. Home loans are an important part of a bank’s business model. As a result, obtaining a loan for a residential project is more likely and possible than for other assets.

Furthermore, depending on the value of the project, you can borrow more considerable amounts. This benefit may also be available at lower interest rates. Resultantly, when considering investing in a residential property, all of these advantages make acquiring a loan much more accessible.

 4. Easy to Comprehend and Research

If one invests in the stock market, they will need adequate knowledge. It is challenging to understand the world of trading and how the complete system works. But that is different when you are investing in residential projects. 

With so many Indian real estate websites, you can easily browse residential projects with their house prices in India and get the necessary information. Thereafter, you can visit the selected residential property to look closely at it.

5. Unmatched Sense of Security

The ownership of a home delivers an unparalleled sense of security. And this isn’t changing. People will still seek to own their homes in the future, which in itself is a silver lining. The fluctuating equity markets might further boost sentiment and rekindle consumer interest in the real estate sector. 

6. NRI Investments: 

Following the current situation, many foreign countries are eager to invest and entice Indian businesses. 

The reduced uncertainty associated with the pandemic will encourage NRIs to invest in Indian residential markets. Several factors, including stricter regulatory measures and superior foreign exchange conversion rates, contribute to the NRIs’ interest in Indian real estate.

7. An Abundance of Affordable Property Options

Investing in residential projects in various cities is now feasible. You can spend a small amount and stay well within your budget. You can proceed only with projects that you can afford.

Notably, over the last year, demand for ready-to-move-in units has increased across all real-estate segments, including luxury, affordable, and mid-segment housing. As homebuyers preferred completed apartments over under-construction homes, the share of ready-to-move-in homes also increased in the primary market.

Summing Up!

Residential project investment is sure to yield positive results and returns in the future and is a decision you won’t regret. There is a high chance that property prices will rise in the near future, which means real estate investments will be profitable for you.