Why investing in real estate is better than other investments
With the lockdown easing every day, many industries have reopened and started operating like they used to before with some precautionary measures. There is still a bit of apprehension about how things are going to look in the near future. However, every crisis that we as humans have undergone, has presented us with new opportunities and COVID-19 is no different.
Real estate is a very profitable asset to possess, unlike some other investments. Investing in real estate is a smart decision as you can enjoy an excellent rate of returns and leverage estate to grow your wealth. As 2020 has proven, homes, spacious homes are the best future investment and a current requirement. Due to this, Avinash Bhosale of the ABIL Group believes that the next few years will redefine real estate for the better.
In the past, five to six years the real estate industry has become more consolidated due to several government reforms. If you ever thought of investing in real estate or buying a home to call your own, but couldn’t afford it, now is the best time to do so.
Below are the five reasons why investing in real estate is better than other investments.
1. High Returns
Technically, the more time you hold onto your property the less the risk of loss. The value of your property improves in accordance with the market. As real estate is a tangible asset it gives you more control of your investment. Unlike the stock market, there is very little possibility of fluctuations in the value of your asset.
2. Easier to understand
Surely the home buying process can seem to be a bit complicated but the basics are really simple. Investing in real estate is way easier than understanding giving it a fair advantage over investing in stocks. Purchase a property, manage it properly for years and attempt to resell it for a higher and profitable value. You can also rent your property and have a stable recurring income each month.
3. Buyer’s Market
There is always a market for property buying. It’s very apparent that people are going to need houses no matter what. This makes real estate a safe & good investment compared to other investments.
This is true not just for the COVID pandemic, as real estate is seen as a stable asset and a favoured investment option notably in a changing market scenario like right now.
New projects especially have been in high demand due to the modern facilities they bring to their residents. Which is why Mr Amit Bhosale has been a driving force in making ABIL’s homes stay on top of the game with topnotch technology.
4. Stability in a volatile climate
Your land or home will always hold value. Some other investments like stocks or cars can leave you with very little or close to no tangible asset value. For eg. the stocks you buy can reach its lowest or the new car you buy will eventually lose value over time. Home insurance will ensure your investment in real estate is protected. So it’s better to choose a policy when you are buying a home so that your asset is safe in the worst-case scenario.
5. Real estate has a high tangible asset value
During unpredictable and turbulent times, the only place that offers warmth and security is ‘home’. Due to job losses and financial concerns, paying rent has suddenly become an economic burden. Whereas, home loan borrowers right now have an option to avail EMI suspensions making it more helpful over rental payouts. This can easily work as a fallback investment should the need ever arise and it can also be an added psychological support.
6. The value increases over time
As mentioned before, the housing market has always seen a rise in value over the years. And will possibly be the most stable investment option in the coming years. Real estate investors are in the top-performing markets and are enjoying some of the highest revenues.
