Is real estate a good investment?
We believe it is.
Investment is a great way to secure and multiply your hard earned money. There are many types of investment opportunities around us, each having their own set of pros and cons.
Some investments yield good returns but they are very risky. On the other hand, investments that are safe and secure, usually end up generating less profits. In short, the benefits of investing in property are huge.
We analyzed certain investment opportunities and it is safe to say that real estate is the most secure and stable source of passive income.
Why we consider real estate as the best investment opportunity?
Let’s find out!
1. Less volatile:
Real estate investments do not face abrupt changes like stocks and shares. The real estate market is quite stable and the prices appreciate at a smooth pace. It means the chance to incur loss is quite less in real estate.
2. Better returns:
Real estate gives you a good rate of return. On average, you can earn up to 12% of return every month. For instance, if you purchase a piece of property for $5000, you can sell it for $5600 next month, that too without doing LITERALLY nothing. You are earning an extra $600 by sitting at home.
Also, due to the increase in population and change in lifestyles, real estate trends are also changing at a fast pace. For instance, Rawalpindi, one of the major cities in Pakistan is getting modernized, all thanks to state of the art housing societies. There are hundreds of houses for sale in Rawalpindi which can earn you pretty good returns.
3. Tax benefits:
Investors usually get tax deductions on the property. For instance, you can get deductions in mortgage interest. Governments usually do this to invite more investments in the country.
One of the most important and appealing factors in real estate is the full ownership of the asset. When you purchase a property, you get full ownership of your asset and nobody can snatch it from you because you have all the legal rights for it.
In other forms of investment such as stocks, mutual funds, and vice versa, you do not get the tangible asset and its ownership. That being said, real estate allows you to have control over your assets.
5. Double benefits:
If you have a house or a flat, you can reap multiple benefits from it. You can rent out/ lease out your house, you can put up your spare space on Airbnb, you can use it for your own residence and when the property prices go up, you can sell it off. How amazing is that?
So, these are some of the major advantages associated with real estate investment. If you are looking for a secure long term investment, do consider real estate investment. Do your research, try to get familiar with the best real estate investment cities in your region and invest accordingly.
Narmeen is a well-seasoned real estate writer at Graana.com who loves to write about real estate, investment opportunities, and finance.