“A funny thing happens in real estate. When it comes back up like gangbusters”- this quote can only be true in current scenario if you are intelligent enough to invest in land property. It has become a cliché now to inculcate this line “Ninety percent of all millionaires become so through owning real estate”, isn’t it? We all are convinced now that if you invest in real estate, it explores like a gold mine in couple of years later.
By going with the norms of intellectual approach, let us get a vivid insight brief on how beneficial you can be by investing in property?
Real estate investment is a great option to keep your ongoing income flowing. It is proven to be the best tool to start up with your wealth building process. But….
Think twice before take a leap investing into residential/commercial property
While purchasing real estate as an investment, you require chewing over the fact of the cost of taxes involved with it and the course of renting you out. Most of the investors thrive on Rental Company to refrain all hustle and bustle it incurs.
On top of that investors can’t avoid of the factor of availability of extra capital outlay for Good and Services Tax and choosing property is the crucial step involved in it as some property may find difficulties to find suitable tenants.
Land is the rare virtue
Many report and surveys have been done previously to analyze the potential of the investing in land, as per the findings it is only 16% investors invested in land. Is this because of non cognizant approach towards land property or not having enough land experts to guide the investors in equitable way?
The Indian very affluent people have invested crores in agricultural lands, this highly valuable bestow just not only acquired by senior people but the younger generation has taken an aggressive participation into it.
Why everybody is flocking towards land investment is based on its superior attraction of tax break.
Purchasing land can be proved to be a complex process to go through, but a knowledgeable expert on land property can show you three most interesting profit quotient of investing in it. Profit can be earned through the crops grown on the land, renting it out to the farmer is always an open option and building up township, dwelling can bring you the bulk return back. The research insight has also exemplified that when an agricultural land convert into urban uses the projected price hike is about 400% higher than the original price of it.
It could be rather shockingly surprising that land is the only investment which has provided the highest return to the investors. The exit multiple on land is 5.2x in recent year.
The other prime attractiveness of investing in land lies within its tangibility, debt in land investment can be structured safer, and one has to battle up with very few competitors.
But nothing comes without a negative involvement; land is not an exception, illegal encroachment and being a victim of dud land owner is always a high risk. It is always advisable to consult an expert who knows the land in and out, before plunge into investment.
Author Priyanka Das.