Here are a few advantages of why you should invest in real estate and why buying and selling property is profitable in India.
Steady Source of Income
The demand for rental houses has risen significantly in the past few years. Due to the pandemic, people are moving out of crowded places and looking to relocate to locations that are calm and comforting.
According to the rental index, Rental housing demand has grown 29.4% q-o-q and 84.4% y-o-y, while average rents have risen 8.4% q-o-q in April-June. This demand is only expected to increase in the coming months. This gives you a steady source of income.
Profitable Even In Uncertainty
Over the years, real estate has proved to be an effective tool against capital loss. RBI data shows that property rates increased by an average of 15.1% across the major cities between 2011 and 2021.
Moreover, after the pandemic, the demand for real estate has bounced back strongly. So if you buy a home and trade it in a few years, buying and selling property can be profitable for you.
Provides Liquidity
Did you know, you can use the property as collateral to raise loans? Loans against property (LAPs) are secured and thus they are cheaper than personal loans. Also, you can get loans against the home for a longer tenure.
The market is forecasted to grow at 14% CAGR by 2025-26. Senior citizens, who get a property loan can also get reverse mortgage financing arrangements without having to relinquish their ownership.
Power of Leverage
One of the biggest advantages of investing in real estate is that it can easily be financed through debt. You can invest more than your current net worth in real estate as compared to other assets such as mutual funds, bonds, or stocks.
Moreover, when investing in properties, most lenders only require you to pay 20-30 percent as the down payment. This makes property investment a viable opportunity for aspiring investors.
So if you are still wondering whether buying and selling property is profitable, remember that real estate investment helps you diversify your investment portfolio. Flipping home can help you earn a lot of money in a short period of time.
The Bottom Line
Remember, real estate is a buyer’s market. While the past few years have seen slow growth due to the pandemic, it is getting better now. This is the right time to invest in real estate because developers have surplus inventory and are coming up with exciting offers while correcting the property prices. So did we help you answer the question – is buying and selling property profitable?
Capital Globe boost of a team of seasoned real estate agents who help you buy your dream home. Rely on the experience of a trusted local real estate agent to explore the best properties in the region.
For more information, give us a call at 9804695046 or send in your queries at
info@captialglobe.in.
