How Profitable Is Real Estate Investment?

How Profitable Is Real Estate Investment?

People nowadays are more inclined to invest as they want to secure their future. One can not earn much by keeping money in the bank, hence one needs to invest to earn a good amount of return. Among several investment ideas, real estate investment is the most lucrative one. One can buy a piece of land or residential property or commercial property. If someone buys office spaces in major cities in India, it gives a handsome return on investment. For example, investment in office space in Noida gives you a very good return.

Why Invest In Real Estate?

There are many reasons for one to invest in real estate, which include, low cost of investment, increased income for the client, high returns on investment, and safety. Investing in real estate is very economical as it gives a very good return on investment. Most of the real estate investors are in the age group of 25 to 45 years. Some people are going to retire soon and some want to secure their future. Hence, they invest in real estate as this gives the best return in the near future. They also benefit from the increase in the value of the property. The more the real estate investments, the more it helps in the higher net worth for the client.

How Profitable Is Real Estate Investment?

Once billionaire Andrew Carnegie rightly said, 90% of millionaires got their wealth by investing in real estate.

Real Estate investment has a lot of potential to be profitable. Investment in real estate could be made with three main assets, namely, land, buildings, and rented/leased spaces. Thorough research is necessary to make an informed decision.

The land is a finite asset that could be utilized to create income. It provides an opportunity to purchase the right property in a competitive market at a lower cost. The amount of profit earned in real estate can be huge if a person builds a commercial property. The returns from real estate property are linked with the annual rental income. Capital gains can be a great source of wealth accumulation and tax-free income. 

Let us discuss how different form of real estate gives you income.

Income From Land

Buying a piece of land is one of the best investments. It gives you a higher return in the future. The value of the property gets appreciated greatly and gives you a double return in few years. No bank or financial institution can give such returns as the land can give

Moreover, it is a safe investment. Even if you are not selling the land, you can utilize it in some other ways.

One can lease out the land to companies and earn royalty which is a regular income. It can be rented out for agricultural purposes. There are so many ways by which you can earn from a land.

Income From Residential Property 

The residential property gives you a regular and fixed income in the form of rent per month. Over time the rent value also increases and gives you good returns. 

You can also gain by selling the property when it gets appreciated. A good location for the property gives you very good profit.

Income From Commercial Properties

Commercial properties are the most lucrative ones. You can give your commercial property on rent to companies and businesses. It has very good ROI as a company usually takes the property for a long period and it favours the owner.

Maintenance and other expenses are also less in the case of commercial property which makes it a desirable choice.

What Are The Benefits Of Investing In Real Estate?

Property Investment is a versatile way of earning great returns on investment. You can make money without much effort.

Real Estate Investment is beneficial in so many ways: The real estate market is flourishing and highly diverse. If you choose the right property in the right location, you will be able to earn money. One can buy land with the right plan and sell it to the builders. It gives you constant and regular income and with inflation one benefits more as the property gets appreciated. 

Steady income, better asset value, tax benefits, monthly passive income are some of the advantages of investing in real estate.

Conclusion

There are several positive attributes of real estate that have helped it rise to be one of the most profitable investments available. It provides a safe and secure source of investment, good returns, and the lowest risk. Real estate is always in demand as it can be developed with time to meet market demands. The time is always not on the investor’s side and hence the real estate investment has always been on the rise.

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