As Shakespeare wrote, “to be or not to be”, the modern investor is wondering, “to buy or not to buy”. Real estate investment in India is something all investors think about at some point. Whether you are buying a home for personal use or property for commercial purposes, real estate can offer you high growth, good returns, and financial security. However, investing in real estate can also be challenging because of the high cost of investment.
As with all things, real estate can have its advantages and disadvantages. Here are some pros and cons that can help you in your decision.
Pros of Real Estate Investment in India
Here are some pros of real estate investment in India:
- Financial security: One of the primary reasons for any investment is to be financially secure. Real estate can offer you financial protection in your hour of need. It has a great resale value and can be used in a financial emergency.
- High return on investment:Real estate can contribute to tremendous growth in your investment portfolio. The rate of return on real estate is pretty high, especially when you purchase an apartment in a well-connected and prime location. You can invest in real estate and accumulate a sizeable corpus for a number of goals, such as retirement, a child’s higher education expenses, and more. You can rent or lease out your property, which can be beneficial due to the real-estate appreciation value.
- Great family asset:Land is a significant financial asset to own. It can be passed on from one generation to another. If you invest in real estate investment in India, you can leave a legacy behind for your loved ones. Your investments can also help your children and grandchildren. In fact, even non-resident Indians can buy property in the country as a means to create a family asset. However, an NRI buying property in India must be careful to follow clearances and pay all concerning taxes.
Cons of Real Estate Investment in India
Here are some cons of real estate investment in India
- High investment value:Real estate may not fit in everyone’s budget as it requires a high investment value. This can make it hard for all investors to invest in property. It can take years to accumulate enough capital to purchase real estate. However, these days, you can opt for more straightforward financial solutions like a home loan to cover the cost of investment. Home loans also offer tax benefits.
- Low liquidity:Real estate has a high resale value, but it does not offer high liquidity. Selling property can be time-consuming compared to other investment options like mutual funds, stocks, and others. Finding a buyer with a high purchase capacity can be challenging. Further, the process of transfer of ownership can also take time and effort.
- Requires maintenance: An entirely constructed house or commercial space will require regular maintenance. The natural wear and tear of the property can depreciate its value. Therefore, you may have to engage financial resources on repairs and renovation from time to time.
To Sum it Up
While there are other investment options in the market, adding real estate can offer better diversification to your portfolio. But the final choice can depend on your needs and budget. If you have the risk appetite and budget for real estate investment in India, you can consider the option. However, if you lack the means to buy property, you may consider waiting for a few years or applying for a loan.
Real estate investment can be a boon or a bane, depending on how you choose and plan for it. In order to make it a success, it may help to select reputed realtors like Piramal Realty. This way, you can get the best quality, style, amenities, and peace of mind.