Pros and Cons for Investing in Real Estate

propertynewsindia.in1  Pros and Cons for Investing in Real EstatePros and Cons for Investing in Real Estate :

We at Investors Clinic are presenting some of the big advantages and disadvantages of purchasing a real estate. Do take a look to get a clear understanding.

There are many people who dream of having their own home – dreams can surely come true but people need to be careful enough to evaluate all the positives and negatives while making their real estate investment.

 

Here are a few things that you should consider as advantages and disadvantages:

 

Advantages -

Big Profits and Exponential Growth

There is no doubt that investing in real estate is one of the safest of the investment options that are available to an individual. And more so, there can be an exponential growth linked advantage to investing in real estate if an individual is able to find property at a price low enough to result in a significant profit.

Renting Advantage

Another advantage of investing in real estate is the rent that you may get if you decide to go for a tenant way. This can also provide an additional income to the household. This additional income can be accumulated to achieve bigger financial goals in one’s life.

Your Home, Your Legacy

This is another big advantage of investing in real estate, as your investment in real estate is not only for your life, but will continue to give returns even after you are gone. Real estate can be willed to family members after your death.

Disadvantages -

Financing your home

Investing in real estate come with its own set of disadvantages as well and finding the right investment bank is one of the key concerns for many who look for home loans.

These days, lending institutions are very careful about whom they lend to, and many times, purchasing a property requires a 20 percent or more down payment. Sometimes finding a loan for investment property presents a formidable task and you need to go into the small details of your loan document and understand all the corners and clear your doubts before signing on the documents.

Debt

As mentioned by a greek philosopher, ‘a debt is a debt and nothing more’. It becomes an obligation on the individual to make sure that it makes all the necessary effort to clear its debt on a time. Hence, it is always advisable to look for the long term financial plan as you need to pay EMIs on a monthly basis.

Property Expenses

If you own a property, there are certain expenses that you need to take stock of, even if you put your property on rent. Owners of rental property are responsible for timely repairs of their property. Additionally there could be expenses related with payment of taxes and insurance which can also be quite expensive in case of rental property.