While this investment tool has a lot of advantages, here’s a look at the top five points that make real estate investing stand out than others:
Value is directly proportional to time
As money grows in several savings schemes over time, the value of real estate also goes up with time. Similarly, rents always tend to rise over time. Unlike the bloodbath in stock markets, real estate prices tend to recover even after the most unsettled periods, statistics have shown.
Being tangible in form, real estate offers more investment control and may be used to profit from a range of income streams while experiencing capital growth. The annual growth rate of home equity is typically between 3.5 and 3.8 per cent.
Tax benefits
Regular rental income
An investor in real estate can be assured of a monthly rental income, despite whatever goes around in the market. Owning a property makes sure for the investor that their monthly income is reliable and consistent.
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Less risk or risk-free
The volatility in the stock markets around the world is not a hidden phenomenon. It can happen anytime as is happening now, making it risky to trade in equity. On the other hand, investing in real estate is less risky as it doesn’t require any specialized knowledge and is not as volatile as the equity market. Also, it will probably yield better returns in the long term.
Tangible property
Unlike stocks that have no tangible worth, a real estate asset is there in the physical form which makes it a great tool to benefit from a variety of revenue streams. Further, real estate has no insurmountable financial obstacles and is simple to buy, quick to finance, offers tax benefits and improves one’s lifestyle.
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