Global markets have been getting more volatile as the coronavirus crisis deepened. The current scenario is not favorable for investing in risky financial products. It is unsafe to invest in stock and equity due to violent movements in the markets.
In this time of uncertainty, an investment in gold is considered “safe heaven,” but it has become out of reach with the price climbing up to its highest point.
Investing in the real estate market in 2020 seems like a good option. Prices are stable even during coronavirus and opportunities are rising for people interested in investing their money in the real estate market.
Real estate is a tough business, but with the right insights and viable investment strategy, it is one of the most popular, safe and profitable endeavors with an excellent rate of returns.
According to Andrew Carnegie, billionaire industrialist, ninety per cent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.
Here are the top six reasons why real estate is not only safest but also a great investment option.
Anyone Can Invest in Real Estate
Real estate investors do not require any special skills – anyone can purchase the property. There are no financial barriers to enter, and even a first-time buyer can invest in it, which can yield better returns in the long run.
Fabulous Returns in the Long Term
Real estate yields excellent returns in the long term with minimal effort and risk. Average annual returns in long-term real estate investing vary, depending on factors such as asset class, location, and management. Real estate has proved to be an appreciating asset as many people have become millionaires and billionaires by investing in real estate.
Risk-Free as Compared to Stocks
Compared to stocks, real estate presents less risk. Playing the stock market is a risky game. Real estate is the extreme opposite in regards to certain aspects. The risk associated with real estate is minimized by the length of time you hold on to your property, but it never changes in the stock market. Trading in stocks requires excellent skills to make money out it. Real estate is a tangible asset that gives you more control of your investment as anything gained or lost is a direct result of your actions.
Regular Rental Income
Real estate can help generate regular rental income with almost 100% certainty. You’re not at the mercy of volatile market forces; owning a property assures you of stable and monthly income flows that will keep increasing over time – along with your home’s capital value.
Most properties are purchased, making a small down payment. Each time you make a mortgage payment, you build equity. Regular rental income from good investment can also help you pay the mortgage amount. Once you have built up an equity position, you have the leverage to buy more properties and increase cash flow and wealth even more.
Real estate investing comes with numerous tax benefits. Tax codes allow various deductions on interest mortgage, property taxes, insurance and depreciation, and other benefits.
The best investment on Earth is Earth. In India, it is the second-largest employer after agriculture, becoming the preferred investment destination for real estate developers and is slated to grow at 30% over the next decade. It’s still the safest investment option globally and will continue to grow in the long term.