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Why do you need to invest in real estate?

Home -> Why do you need to invest in real estate?

The great way to build wealth is to invest in real estate. The demand for property purchases is a smart idea & booming rapidly. Before you start investing in real estate you should certainly take a look at the factors that could help you make a huge profit by simply understanding the basics.

The factors that are influencing the property purchase has made it more affordable & easy buying experience. The best reasons why you should invest in real estate are enlisted below:

  1. Real Estate Investment Appreciates in Value.

When we choose real estate investment method, it basically means to make a profit out of a property. With the increasing time, the value of property increases & it could bring great advances & profit to the investor. It is a fantastic idea to purchase a property to either re-sell or rent it. Therefore you will not regret investing in real-estate.

  1. Reduction in GST Rates 

There has been a cut in GST rates on properties by the GST council of India & has come into effect since April 01, 2019. Buying a house is easier now. The rates for affordable housing have been cut to 1%, which was 8% earlier & the rates for regular units have been cut to 5%, which was 12% earlier. This is definitely attracting many investors to purchase the property.

  1. Property Investment is Improvable

Many investors purchase property to earn more profit & implements smart strategies to invest in real estates, such as buying a property that is improvable & makes reasonable changes to uplift the property’s value. Which benefits the buyer to work efficiently & gives a better payback.

  1. Reduced RBI Repo Rate 

In the first bi-monthly monetary policy meet for FY 19-20, the RBI has reduced repo rates by 25 basis points(0.25%) to 6%. Which basically means that the home loans are affordable now. The interest rates on purchasing a home have decreased which is also a great reason to invest in real-estate. 

  1. Tax Saving on Profit from the Property Sale 

In the interim budget of 2019, the government has announced that a person can save tax on the sale of one property by long-term capital gains(LTCC) investment in two residential 

properties, which used to be one residential property earlier. This is applicable only if the capital gains do not exceed 2 crores. Investors are now interested in purchasing more properties at a single time.

  1. RERA Act for transparency in Property Purchase 

The major contribution to India’s GDP is because of real estate. The RERA(Real Estate Regulatory Authority) has bought improved security, fairness, accountability & transparency in the real estate marketplace. This has been made to promote & regulate the real estate sector, they have already started to eliminate activities that could harm to deceit reputation of the real estate sector. 

Now more people feel confident & safe to invest in a real state, because there has been more seriousness, awareness after the regulation of RERA. 

If you are planning to buy a property, this is the right time with all the information that is mentioned above will help you invest & earn a good profit on the investment of real estate.

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