Should One Invest in Real Estate Today? Here’s a Look.27 February 2020

In today’s day and age, there is hardly anything more precious and in demand than a roof above one’s head and adequately insulated shelters. While nothing beats the comfort and security of having a ‘home’ to call your own, the world is unfortunately faced with a space crunch. Today, affordable housing facilities have assumed top priority as one of the core basic needs alongside food, water and clothing.

In such a scenario, investing in real estate serves as a major source of relief, not only for individuals and families on the hunt for accommodation facilities but also for those leasing out these properties and earning extra income to support themselves and their loved ones. With statistical evidence estimating the real estate industry in India to reach $ 1 trillion by 2030, real estate is one of the most sought after investment avenues today. So, here’s a look at why it is a good idea for individuals to incorporate real estate as part of their investment plans, as well as some aspects to consider while opting for this investment strategy:

Why Investing in Real Estate may be Beneficial for You

Here are some benefits an investor may reap by investing in real estate in India:

  • Tax benefits: Often, while deciding on what securities to invest in, individuals look for tax deductions that can help them save substantial amounts while also reaping sufficient returns. Real estate investments are popular for their various tax benefits, including exemptions on the capital gain tax, depreciation allowances, mortgage interest deductions etc.
  • As a source of income: While being employed and earning monthly income is very crucial to leading a comfortable life today, it often does not suffice as the only means of survival. With increasing demands comes a need to increase one’s purchasing power, and some extra income from another source can help one considerably in this regard. Although investing in real estate does require one to spend a sizeable amount on purchasing and maintaining the property, one eventually receives steady returns as s/he goes along.
  • Towards a good cause: As mentioned earlier, housing and accommodation facilities are the needs of the hour for thousands of individuals in this day and age. Many families may have to take huge loans and carry out hefty investments to buy a property of their own, during which time they would require a temporary accommodation facility. In such scenarios, one’s real estate investment may be utilized to provide such individuals with shelter for the time being. This helps people looking for accommodation, while also catering to the financial needs of the investor.


Things to Remember Before Investing in Real Estate

While investing in real estate can significantly help one earn significant returns, there are some aspects that one may need to keep in mind while purchasing an accommodation facility for investment purposes:

  • Be prepared for extensive documentation procedures: Buying a property involves the coordination and authorization of many different parties besides the buyer and seller, including a broker, the government, a wholesaler etc. Moreover, it is mandatory for any buyer to submit specific personal documents to various entities for security and transparency purposes. Thus, while investing in real estate, one needs to be prepared to devote sufficient time to such lengthy procedures.
  • Post-purchase maintenance expenses: Another significant aspect to remember while investing in real estate is that while the returns from such investments are certain, the investor typically spends sizeable amounts of time and money in purchasing and maintaining the asset. Moreover, the purchased property also entails regular expenses in the form of maintenance, repairs, renovation and so on. As a result, even upon reaping returns from the asset after purchase, one may end up spending specific amounts of this money on maintaining the property. So, as an investor venturing into real estate, it is important to take cognizance of such overhead expenses and plan accordingly. You may speak to a reputed share market broker or investment advisor before you decide on incorporating real estate as a part of your investment strategy.
  • Slow but sure returns on investment: Typically, an individual spends a huge amount of money in purchasing a property, and this may sometimes even take up a large portion or the whole of one’s lifetime savings. In such a scenario, one is often sceptical about the amount of returns s/he may receive in the form of rent after the house has been purchased – will it cover all the expenses that one has incurred while making the purchase? While buying a property, it is essential to remember that the returns one reaps from it may help him/her from a long-term perspective, but the investment is not very relevant to short- and mid-term investment objectives. Investment in stocks and other avenues may be better options for shorter-term financial goals.



Today, the real estate sector comprises one of the most sought after industries in India, for individuals looking for accommodation facilities, as well as for investors looking to earn regular returns from the property. The key here is to carry out a thorough analysis of the property in concern and tread with awareness about the pros and cons of investing in real estate. Would you like to know more about the various investment avenues you may opt for? Click here to seek our guidance and start your investment journey today!

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