Real estate investment
is a commonly chosen option, and assessing its intelligence as an investment
reveals compelling reasons to consider it. A growing trend is the acquisition
of second homes, with many individuals actively seeking or investing in such
properties. The advantages extend beyond mere appreciation, offering potential
tax savings as well. To illustrate, consider purchasing a flat in a
metropolitan area like Mumbai, where the initial investment may be around 1.2
crore. Upon resale in the suburbs, the property could fetch around 80-90 lakhs.
Over three to four years, the value is likely to appreciate to 1.5 or 1.1
crore, resulting in a profit of 30 lakhs. Such investments not only yield
appreciation but also provide a sense of security for your financial portfolio.
The extent of value appreciation hinges on factors such as the city, area,
location, and the reputation of the builder. Importantly, real estate
investments can offer more stable returns when compared to the volatile nature
of the stock market. While stock market outcomes are unpredictable, real estate
provides a more secure and reliable investment avenue.
Example:
Amit and Ajay, both
good friends who studied engineering together in Goa, have always shared their
thoughts and concerns. Currently employed in professional roles in Goa with
attractive compensation packages, they recently met at a coffee shop to discuss
future investments for financial security. Both are decided to investment in
real estate.
After thorough planning
and research, Amit decided to explore real estate options and eventually
settled on purchasing a 3-bedroom flat near the beach. His strategy involved
renting out the flat, and after careful consideration, he acquired a 3 bedroom hall kitchen flat
for Rs. 60 lakhs. Without delay, he engaged with a broker and began renting it
out at Rs. 3,000 per night to tourists and foreigners, generating an estimated
monthly income of Rs. 80,000 to 90,000.
Ajay also purchased a
3-bedroom flat in a nearby industrial area. His plan is to rent the flat to top
executives working in corporations, aiming to generate a higher rental income
compared to the standard rates. He approached a broker and successfully rented
out his flat for Rs. 32,000 per month.
Conclusion:
