There are many investment vehicles in the market – gold, provident funds, bank deposits, mutual stocks. The list is endless, but real estate is a good reason for one to invest – here are some reasons why…..
STABLE RETURNS: If you buy property and then decide to give it out on rent, your income stability is secured – you are assured of regular, secure income. The amount of volatility in real estate is very low compared to other investments, making it a sound reason for investing.
APPRECIATION OF CAPITAL: Though every investment has its own cycles of highs and lows history has shown that in the long run, real estate investments always go up. Especially in a country like India, superior returns have been generated for most investors in the realm of real estate.
LESSER RISK: Compared to other options like stocks and other paper assets like mutual funds or bonds there is lesser risk in real estate. Even if there is a downside in the markets the value of real estate will never veer towards zero. Investments in other assets could be washed off without you knowing it!
DIVERSIFICATION OF PORTFOLIO: You should never put all your eggs in one basket, and so the addition of real estate investment to your portfolio is a good attempt at portfolio diversification and can substantially lower the volatility across your investments.