Real estate investment is like a tempting box of chocolates. If you have received a box of chocolate as a gift you must be knowing that there are so many choices and most of the time one goes on biting each of these chocolates to find out what you’re going to discover inside. There is a plethora of ways of making money in the real estate market. One need not choose or try them all but knowing one’s niche pretty well and becoming a master of it is a much better way of getting success.

Anybody can invest if they want in the real estate business and now as the Indian market is in a lull and is waiting for the triggers to revive itself, this is the best time to invest.

Out of the many strategies that the real estate investor takes recourse to, one popular way is to buy and hold the property and give it for rent till the value appreciates and then sell it at a higher price. Here one needs to keep in mind that the real estate market has cycles. There are peak times when the prices are all time high and the unsold stock is on the lower side. And then there are tipping points too when the prices begin to fall and the home owners are reluctant to sell at such lower prices. There are bottoms also where the prices hit the all-time low and the investors start purchasing and thus the unsold stock gets cleared a bit. Then again the market starts climbing due to high buyer’s sentiment and the government measures. These are the cycle that one needs to be aware of to gain by investing in the real estate market.

Well, every trade has its rules of the game that can be eventually mastered by one. But the question still remains that whether real estate is the most lucrative form of investment market or are there other better options. We evaluate all of these and enumerate the top five reasons why you should invest in the real estate market.

Cash Flow: The foremost reason for investment in the real estate market can be cash flow which means whether you invest from your pocket or from a loan capital you will be getting a periodic flow of cash in the form of rent. Thus this is one kind of passive and positive cash flow.

The value appreciates: The value of a property generally appreciates and this can be increased by doing proper repairs of the property.

Depreciation written off: Although the value of a property increases the government gives a certain amount of deduction as depreciation of the property which is applied at the time of tax calculation.

Tax benefits: The fourth reason is that an investor can claim the interest of the monthly mortgage amount as a tax deduction.

Financial Leverage: As for the property deals bank give loans and often the investor has to invest 15 or 20 percent of the total proceeds. This means that there is a huge percentage of ROI as the investment is low. An example will clarify the case.

Let’s suppose a property is worth Rs. 10, 00, 000 which is bought by an investor procuring a loan amount of Rs. 8, 00,000 and he had to invest only Rs. 2, 00,000. Now supposing that the property price increases by 20 percent that is Rs. 12, 00,000 the investor makes a profit of Rs. 2, 00,000 but his investment is just Rs. 2, 00,000. Thus it comes to about hundred percent returns on investment.

With all these reasons cited above one can try investing in real estate as the market is in a stagnant position waiting to climb. Thus this can be the best time to invest and reap the benefits later on.

15 Responses

  1. Ram

    Most of the people investing in properties only because of to get tax benefits. And they can get a fast and excellent return within a shorter time.

  2. Swathi Kiran

    There are many reasons to become a realtor, but the main thing behind this is getting huge returns as profits. In India especially in Bangalore there are huge chances to get more profits in real estate because Bangalore became the Silicon Valley of India. Many people are coming to Bangalore for career purpose and going to settle here this is the one of the reasons behind real estate boom in Bangalore.

  3. Balvan

    In India for the NRIs its good opportunity to invest into real estate sector because in India’s is not having any extra charges for NRIs and giving support for financial problems by providing loans from the Banks with low Interest. So Hurry up don’t miss to invest your money at right place of India.

  4. Durgesh

    There are having reasons to invest into Realtor, the main reason behind investing is gets double of good returns on investments. The property becomes back support to the investor’s family and in the financial problems. Lot of people makes the property to live rest of the life happily with their family.

  5. Daman

    In real estate of Bangalore just we have to invest 20 percent for the booking our home then for the next payments we can pay by monthly incomes or from the Bank loans. Every builder is providing loans for their customer supports and its good for the home buyers to invest little amount to have own home.

  6. Anish

    This blog reasons gives very much importance to the investors and if suppose few people doesn’t know about the real estate market strategy how and where to invest their precious money for them this blog reasons will help 100 %.

  7. Sabal

    If we invest into the real estate market, we will get definitely double income of investments like cash flows year by year if once we invested mean after one year the invested amount becomes double likewise our value of the property becomes more demands and in future the property value will be increases more.

  8. Akhilesh

    Including these all reason, my strategy is to invest into real estate will gives good returns & gives back support in throughout investors’ life. Investing into real estate gives back support & can be useful in any of the critical situation in future..

  9. Pradeep

    As per my point of view, the good reason is to invest into real estate business to control and safe money and must get good returns instead of investing money into banks or in share market. There is no lose in investing into real estate and it gives always good returns.

  10. Dharmindar

    people may have many reasons behind investing their hard earned money but whatever points and the reasons is mentioned in this post will definite helps to them.

  11. Mishra

    In this city investors are investing money because they can get financial loans as well as good returns on their investments. And the values of the lands must be increases in future so that each and every richest person invests into this city properties.

  12. Vishnu

    There are so many reasons are there but the most one is growing IT hubs which returns investors double or triple of their investments. In this city investments are done from mostly other cities because other cities people know this city gives good returns. The value of the anything in this city is so specious and the Lands values are more than the diamonds or gold’s.

  13. Deepak

    From my point of view the expenses of everything made builders to high the prices of properties. In the expensive city everything is too much expensive like buses fare charges, electricity bill, water supply bills, veg foods and many more prices are jumped like anything. And also in materials of properties like cement, bricks, wooden, paint, plumber materials and many more are cost is increased. Obviously the demands of few areas are more so that builders changed their prices on their price list from low to little bit high.

  14. Manoj

    The investors are more participating in Bangalore because of the low ROI applicable. The idea behind investors are if the ROI is less now then the huge of investors invest their money and wait for the next result of announcement of Banks on ROI to get more good returns. If interest is less mean so many people goes to that investment plans.

  15. Veeresh

    This blog contents works well for the investors, the reasons which is listed will be easily understand by the users who will visit this site blog. Thanks for uploading these useful reasons for investing money.


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