Cosmic Structure limited- Real Estate Company in India, Corporate Park developments in Noida, Buy Commercial, residential projects in Noida, greater Noida.

Stocks, bonds, mutual funds, fixed deposits, gold and finally real estate, although the options seem endless, making a choice is a Herculean task for him. As a father with two young children in school and a career that is just starting to show positive growth, investing his savings, safely, is crucial to him.

Cosmic India

Here is my understanding of investing in real estate.

Inflation Hedging

The relation between demand for real estate and GDP growth is the basis for the ability of real estate to foster inflation hedging. When economies grow and expand, the demand for real estate consequently increases. With the demand for real estate, the rents increase translating eventually into higher capital land prices.

Retirement Income

The current economy to say the least does not support saving. The pressure on the income to be spent on varied channels is high. Between school fees, fuel bills and marriage funds, almost everyone’s savings account is receiving thinner and thinner checks.

Positive Cash Flow

The idea behind investing is to receive more than you have paid on a future date. This is one of the main reasons why real estate is such a good investment. Real estate is one of very investment options where you can receive a guaranteed tangible income through the year. What then is the positive cash flow?

Scope of Appreciation

Real estate investment is one of the safest investments options. The safety is owed to the scope of appreciation which is guaranteed. Numerous experts in the realm of real estate agree that over a ten year period real estate has seen the highest scale of appreciation in comparison to any other class of investment.

Tax Benefits

Taxes are the bane of our existence. They are, however, a necessary evil, and real estate investments can give you a much needed tax breather. Real estate is one of the major contributors to the country’s GDP. Since governments are very partial to home buyers, your investment in real estate is bound to give you a tangible tax benefit as much as up to INR 1,00,000 every year.

Leverage

Leverage in simple terms is the ability to use borrowed capital to ensure a potential return on investment. Real estate is the only realm in investments that allows leverage. By paying only a fraction, a minimum of 20%, of the whole cost of the property, you as the owner, control the income from that property by availing a maximum of 80% of home loan.

Diversification in Investment Portfolios

A diverse investment portfolio diminishes risk and increases returns. The benefit of adding real estate to your investment portfolio is the fact that it will carry a minimum reliance on other instruments. Assets that are not co-related to others in the same portfolio decrease risk while still fortifying the return on investment.