Real estate refers to land and building, along with the natural resources that are part of the land. It’s categorized as an immovable asset and its value is driven by the fact that land is a limited resource.
The right to own property has been fought for throughout ancient times since it provided one with the power to be self-sufficient and earn a livelihood. In modern times, it has retained its value and has become an irreplaceable investment option.
Below are some points which make real estate such a hot investment commodity –
High Rate of Return on Investments Investment in real estate vs another form of assets is always a step or two ahead when it comes down to the rate of return on investment. Here, the underlying value of the property, as well as the income generated from it – both, undergo appreciation throughout the years. This situation makes investment in real estate – inflation-proof. Your money doesn’t lose its value due to inflation and you hit two birds with one stone.
Different streams of revenue from one real estate asset
If you purchase a residential property – you have the option to become an occupant and have your own roof over your head. If you already have that, you can rent the new property out and get a steady monthly rental income on the side. If these two don’t click, you can even refurbish the house and return the house to the market to earn a hefty margin on its resell. This is known as house flipping and makes for a good option to pursue too. On the other hand, if you purchase commercial spaces – for example an office space in a good locality – you can further make it available to corporates and startups on lease. Retail shops are also an option – for individuals owning businesses or for someone who’s planning to make it available for rent. You are guaranteed returns and appreciation over a period of time.
Always a demand As mentioned, the land is a limited resource, which means it’s in finite supply. We cannot increase the natural land space by technology or the like which is what makes it worth the value it holds. With changing demographics and the rising population, we can see that the demand for land (be it buildings, office spaces, complexes, villas, or apartments) is constantly on the rise. This, in turn, allows the property to be appreciated as its value increases proportionally to its demand in the market.
Diversify your portfolio and claim tax benefits On both macro and micro levels, the purchasing power of countries and individuals respectively has increased. This has allowed everyone to pursue better standards of living and has increased options for almost everything in life. Thus, of course, investment avenues are not any different. From crypto-currencies to clean energy, we see an upsurge in different options which are offering different benefits and different rates of returns. In this bag of investment options, real estate is an indispensable choice due to its nature. Globally, governments too have made it easier to invest in real estate by facilitating different tax-saving benefits.
Conclusion
If made prudently, real estate investments offer high returns and various avenues to expand one’s wealth. So, if you wish to embark on this journey – choose the team at PB Realtors. With expert one-on-one advice and the-first-of-it’s-kind exclusive offers for listing and purchasing, you will leave more than just satisfied.
