In the race with Mutual Funds, Equities, gold, etc., Real Estate beats all of them as a prized asset that you can truly bank on. Why so, well we have discussed that in detail.
Appreciation of Capital
Despite the market slowdown and irregular performance of the realty sector, property tends to remain an ideal class of asset. Other than a strong desire of becoming a homeowner, the purchase of a property can help you in times of emergency. The statistical report shows that the Compounded Annual Growth Rate (CAGR) given by the property is higher than all other classes of assets.
Earn a Fortune in Future
A property in a remote area or suburbs of the city would not cost one much in comparison to the high-end ones with prime locations. But the inevitable development of the area in future will cause the buyer to earn high profits.
Assured Recovery of Losses
Investment in stocks can hardly be relied upon since there are past incidents where the values have drastically fallen from, say 300 to 45 rupees. No loss could be recovered due to the downslide of the concerned company.
But an investment in Real Estate is devoid of such risk despite its ups and downs since these are cyclic. Thus, if you continue with the investment then you shall gain more than just the recovery of your losses. The Return on Investment (ROI) statistics shows property ahead of all other assets with respect to investment over a long time.
Returns are High
In comparison with other assets, the returns on the property are always high. For instance, if the returns on gold are 12% then it will be 16% on residential flats and even more than that on commercial properties.
Least Depreciation during Inflation
Property is the sole asset that hardly becomes little in value with the decreasing value of the currency, which means during the period of inflation.
Tax Saving Benefits
No other class of assets except property can offer you the same number of tax saving benefits. Insurance or mutual fund investment brings only a limited portion of it under tax-saving purpose. Whereas, assets like gold do not provide any significant tax-saving benefit.
Financial Freedom
The presence of Real Estate Investment Trusts (REITs) has led to the financial freedom of those investing in properties.
Appreciation Despite Slowdown
In spite of the stock market being on a high for two years, just a few of the stocks are at a high rate while the others are in an unpleasant state. On the other hand, the Real Estate market has witnessed a continuous appreciation of 5 to 20 % irrespective of the slowdown being faced by it.
Hope, the information has put all of you out there into a good mood. To get more of it, stay in touch with Transventor Property Management Services Pvt Ltd. We offer the most practical solution to any problem you may face while selling, renting or purchasing a property.