Many people tend to think that real estate investment is risky, however if it is done properly then it can lead to good return on the investment. Here is the list of benefits of investing in a real estate –
1. It provides psychological or emotional satisfaction to the person buying a real estate.
2. Capital appreciation in case of it is high if one makes investment in it for more than 5 years
3. The investment on real investment provides tax advantages both in wealth and income tax and hence it is quite attractive to invest in real estate.
4. Interest on loan taken for buying a real estate is tax deductible expense and therefore it’s an attractive bet for investors.
5. In case of rising inflation environment real estate can be a good hedge against the inflation.
6. When all other alternative investments like gold, stocks, mutual funds etc…., are affected by global economy shocks, real estate as an asset class is not affected that much because it is more affected by local factors than global factors.