Advantages Of Realty Investment
1. Attractive leasing rates. Impressive returns and considerable monthly cash flow. Comparatively longer lease contracts.
2. Typically, residential leases are for short-term periods and commercial leases last for 10 years or more, thus giving a considerable amount of cash flow stability.
3. Real estate prices are driven by demand-supply, other than the market forces. In India with a huge population, with growing income and demand which continuously fuels the upward trajectory of prices.
4. There are many positive benefits like depreciation, tax deductions and finally, selling the property through a 1031 exchange, that ensures one can avoid paying capital gain tax, as long as the proceeds are invested into a similar kind of property type.
5. Offers an opportunity to own a high value asset, with minimal investment as down payment.
6. Financial assistance available through all leading banks and NBFC’s with tax advantage and an option to return the loan in affordable installments.
Disadvantages In Realty Investment
1. Best returns or appreciation in value occurs with time. Hence, longer time in years needs to be clocked.
2. It’s often hard to get diversified if investing in real estate.