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WHY REAL ESTATE INVESTMENT IN INDIA IS THE MOST PROFITABLE OPTION?

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WHY REAL ESTATE INVESTMENT IN INDIA IS THE MOST PROFITABLE OPTION?

  • 28 Jun 2023

The typical Indian is looking for various ways to get money and maintain a secure financial situation. The time when people could simply rely on their income and conventional savings to fund their future is long past. People today seek to invest their money and develop several sources of income independent of their current employment.

Because of its high return on investment (ROI) value, the Indian real estate sector is booming and has integrated itself into numerous successful investment portfolios. According to a survey, real estate makes up 77% of the average Indian household's total assets. So, if you want to increase your wealth, you should also think about investing in Indian real estate.

Find out more about how real estate is a profitable investment option :

 1. It is a safe investment option

A real estate investment can be much safer than other assets like the stock market, gold, cryptocurrency, and even banks. The stock market is always changing. Gold prices may assist to moderate market volatility, but they also come with additional annoyances including storage and theft problems. The fact that cryptocurrencies are the "new kid on the block" means that not much is known about them.

The implementation of RERA, lower home loan interest rates, and other factors have all contributed to the real estate sector's rise during the past few years. The interest rates on bank savings accounts, on the other hand, are quite low, especially when contrasted to the rising inflation.

You can put your extra money to work by buying a house. It is less prone to frequent swings, and the likelihood of theft is very low. Real estate prices are also more stable and predictable due to the longer pricing cycle compared to other assets with shorter pricing cycles.

2. It is a rapidly growing sector

The Indian real estate market is expanding quickly. Real estate sales are anticipated to increase from 12,000 crores in 2019 to 65,000 crores in 2040, accounting for about 13% of the nation's GDP by 2025.

With new residential and commercial developments planned for many locations around the nation, including tier 2 and tier 3 cities, you can take advantage of Sections 54 and 54F's exemption from long-term capital gains tax on investments in residential properties.

3. High potential for growth

A successful choice at the moment is real estate investing, with the focus of the world shifting from China to India. There will likely be a significant increase in employment in India as more and more foreign businesses move there. More and more people are probably going to buy homes thanks to the influx of cash, which will raise the demand for real estate. This is good news for real estate investors because they can take advantage of Section 54F of the Income Tax Act's exemption from paying capital gains taxes.

4. High return of investment

Real earnings are available to you since real estate investment returns are higher than inflation rates. Real estate can provide you with a high return without taking on much risk, especially when compared to other high reward options like direct shares, etc. With legal processes like registrations and stamp duties properly in place, the process of investing in real estate is also relatively streamlined, lowering the likelihood of loss due to fraud or scams.

5. Tax savings

Tax savings are a result of mortgage loans. You can save up to 1.5 lakh rupees on the principle amount under Section 80C and up to 2 lakh rupees on the interest payable under Section 24 if you are a first-time home buyer. You may be able to reduce your investment cost and increase the investment's affordability with the help of these tax advantages.

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