English philosopher and economist John Stuart Mill once said that landlords grow rich in their sleep without working, risking, or economizing. The about two-centuries-old statement still seems to hold true due to the stability associated with real estate. Despite the unprecedented challenges of pandemics when other investment avenues were weak, the real estate sector remained resilient and lucrative for investors. The flow of investment increased during the period in the pursuit of a haven to remain unaffected by the effects. The sign of bouncing back shown by the sector during the last leg of lockdown has become stronger in the post-lockdown period and it is on the incessant rise.
It’s a well-known fact that real estate doesn’t carry the kind of threat associated with other investment options such as bank deposits, mutual funds, stocks, etc. The growth prospect here is tremendous and one can easily calculate the escalation potential of any property that gives the guarantee of high return with time and the chances of reduction in prices remain bleak.
Real estate allows investors to earn rental income in case they are not living or using the space. The demand for a rental property in both the residential and the commercial segments always remains high. The income varies according to the location, but it’s always good. While the metro cities are giving great opportunity to earn an enormous amount from rent, the Tier 2/3 cities are also flourishing with such kind of opportunities. Apart from that, the property can be used anytime by the owner to raise loans such as business loans, education loans from lenders against the property.
Buying a property especially a home is much beneficial for buyers when they go for a loan. Tax on the repayment of home loan principal and interest amount can be saved by the home buyer. In the case of a joint loan, each applicant can claim the benefits as per the rule. The benefits of the Income Tax Act are the best incentives for the buyers.
Myriad other enticements such as the continuous boom in the sector, rebound in the housing loan market, regulation act like RERA, etc. make the real estate sector the most attractive investment option. The growth opportunities in the sector with the boost in the economic situation will further draw investment, making real estate the most reliant investment option in India.