Saturday 1 June 2013

Why Invest in Real Estate


Investing in real estate can generate stable and attractive returns, monthly or in the long term.  Although real estate has a higher minimum investment requirement than other prevalent investments options like stocks, bonds etc., real estate is backed by a high tangible asset value, which means that the risk involved is lesser. It also offers lower volatility than the aforementioned options and hence can balance the investment portfolio.
A thorough background research work can help in making smart choices between available property options. It is advisable to invest in property that can provide a positive cash flow on a monthly basis, i.e., income from rentals should be higher than expenditure in the form of EMIs, maintenance etc. Good relations with the tenants can reduce the time required in managing the property. This way, real estate investment can be less of a burden on your liquid cash requirements also be less time consuming.