Why is real estate, unlike any other investment instrument?

Real estate investment is very different from any other investment instrument due to its variable nature, high entry barriers, long-term commitment, management, and other factors. These investments are completely from the stocks or mutual funds, The Real estate market requires a high amount of capital, typically around a 20% down payment which might be 20 lakhs in Big cities like Delhi NCR plus closing costs, which makes it very long-term investors.

What is real estate and why is it different from other types of investments?

Nowadays people get very confused about whether they should invest in real estate or not. This type of real estate investment is quite different from any other investment because it has a very variable nature. Also, it requires a lot of long-term commitment and it also depends on various factors. All these investments are very different from stocks and mutual funds. If you want to enter the real estate market, then the biggest requirement for this is a large capital. Especially, you have to make a payment of 20% in the beginning. In big cities like Delhi NCR, you will need at least 20 lakh rupees. Even then, you will be able to become a good investor in the long run.

The real estate market is very liquefied and at the same time liquid means that you can enter the real estate market, you can also buy property but selling it becomes a very difficult task and it is not like a stock that you buy today and sell tomorrow, Property needs time.

Important things for you that will make the real estate very special

First of all, you can easily earn regular income through rent

In the real estate market, you will get some guaranteed rent income which is very good, especially when the demand for rented properties is very high in the market. Also, there is a lot of scope in residential and commercial properties as well and investors invest in real estate for a long time so there is a potential to earn a lot of money by earning rental income and later selling it.

By this cash flow will increase & a good profit will also be made in your account.

In the stock market, we see that most companies give dividends and some interest, but this cannot be predicted much, but in this case you are guaranteed to get a rental income, which also becomes a regular flow of income and this is also better in some way.

If we see historically, till date most of the investments have been in real estate. It has been rightly called an appreciating asset.

In Delhi NCR, the price of properties has increased a lot in the short term, there are many more factors beyond this as well, This appreciation is due to some rental properties or dual income streams which are generated by the investors as well as the companies also get benefits and if the location is good, then it can have even more better price.

Tax benefit

Real estate investment also gives many types of tax benefits, due to which not only the investor can save his money, but the common man can also save his property tax, mortgage interest, insurance, maintenance cost and taxable income. The most important thing is that it makes our real estate investment even more valuable.

Most investors sell property, which benefits them, along with this, they can also get exchange or other wealth creation from it. If any real estate property takes time to be built, then you also get relief in tax penalty, along with this the builder also provides you some allowance.

Due to inflation, the price of property in big cities like Mumbai and Delhi NCR is touching the sky.

Control Over Investment

Real estate offers investors a level of control that is rare in other forms of investment.
As compared to the stock market, this completely depends upon the company management, their investment value, and whether the company is making improvements or not. In real estate, you have a complete influence on your investment's value. By upgrading amenities, and maintaining the property. Now this has become an appreciation through renovations or developments also this offers a a very flexible way to increase returns, This is the only feature that is very different from any other investment.

Conclusion

The final conclusion here is that Real estate is a combination of tangible asset value, opportunities, steady cash flow, tax benefits, and potential for appreciation making it a unique investment instrument unlike any other. Real estate still remains a very compelling option for investors seeking long-term growth, and regular income. Investors can also build a good portfolio while enjoying the unique benefits that real estate provides. Lastly, we can say this is the future of investment if you play the right game.