7 reasons why investing in real estate is a great investment
Real estate is an evergreen industry. The Real estate market is considered as a safer investment option as it yields good returns in the long run. Here is a list of 7 reasons why real estate is a great investment.
1. Easier to understand
When you start to invest in something, it can be difficult to understand everything you need to know about it in order to make a profit. Most other types of investment rely on abstract concepts and complex algorithms which can be difficult to understand and may seem risky. Real estate, on the other hand, is much easier as it involves the purchase of a physical property rather than solving complex mathematical problems.
2. Good returns
Most people invest in real estate for a steady flow of cash in the form of rental income. Depending on the location, you can be earning a significant income from the rent collected. Generally, Cities or towns with colleges/ universities enjoy the benefit of reaping higher rental income as there is always a high demand. The key to gain higher rental income is to choose and invest in a property present in a prime location. This type of income acts as passive income for life.
3. Returns increase over time
It is a fact in real estate sector that the longer you hold on to a property, more the chances for you to get greater results. Even though the housing market has had its own share of depreciation, it always recovers from it and gets back on track. It provides long-term financial security.
4. Tax benefits
Investing in real estate comes with the perks of great tax benefits. You will be able to get tax deductions on mortgage interest, cash flow from investment properties, operating expenses and cost, property taxes and other such benefits.
5. Hedge against inflation
One of the main benefits of investing in real estate is that it acts as a hedge against inflation. As the value of assets increases proportionately to the rate of inflation, it will help in maintaining your standard of living. As inflation goes up, the housing value goes up. Therefore, Real estate is one of the best ways to hedge against inflation.
6. High tangible asset value
There will always be value for your real estate property. Unlike other investments, the value of your house does not deteriorate over time or does not include the risk of losing the investment as in the stock market. It is wise to have a home owner’s insurance which will protect your investment in the worst case scenario.
7. Pride of ownership
Owning a good property in a great location gives a sense of pride to the owner. This, in turn, opens up sources for passive income. Real estate gives you control of your investment. You get to call the shots on your property, the tenants who will live under your roof, the rent you charge and managing the property
7. WHY CHOOSE LML HOMES?
LML Homes is one of the leading builders in Chennai known for their Innovative designs and timely delivery of projects. Our projects range from affordable homes to premium luxury villas which are the best-in-class. Each project location of LML homes is present in prime locations with all necessary social infrastructures in close proximity making it a valuable asset for our customer. Our impeccable commitment towards building functional and beautiful homes has gained us a reputation as Chennai’s most trusted builder.