To give a simple answer to this question, I would say that it depends on what type of real estate investment and where the investment is done. Many people share different perspectives on this topic and sometimes it even becomes a debatable and conflict generating topic.
Mostly let's say someone is having 1 crore in their hand and would like to purchase a property and rent it out. There is a high chance that they might rent it out for a 3% APR. In India, most people purchase property like these only with the support of loans and they pay at least a minimum of 8 to 9 percent as interest for the loan taken. The only hope here is the appreciation of the property value. There are a few drawbacks here.
Everyone doesn't need to be doing investments in real estate. The following things can be considered and the following scenarios can be a good one if someone wants to invest in real estate:
I can keep going on and on by adding a few more points but the point is that the experts say that real estate investments are only for people who would like to diversify their investments and those who have already done other types of investments. But many people don't have any hard feelings attached to a property and they simply focus on buying and selling for profit. Those people make use of the opportunity very well and sometimes with their experience they even know when to enter and when to exit.
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Real Estate is great if the country has a good Law System, but all of us know the big crash that the bubble could have when Government do no do it work.
Buying and selling real estate business is profitable and holding the property for a long time can be very profitable when the surrounding location improves.
While property appreciation can be appealing, factors like low rental yields and high loan interest rates can limit returns. It seems best suited for those looking to diversify, who have stable cash flow, and understand the market well. Ultimately, timing and financial readiness are key to making the most of real estate opportunities.
As long as the property generates a steady return that allows to recoup the investment in the short to medium term, it will be a very good investment, perhaps the best would be to invest in businesses that allow to safely recoup the investment. But like any investment, there are risks associated with the national and international situation.
Hmm
I really don’t understand this real estate system you use in your country as explained here but real estate is a very good business
And it will surely be profitable no matter what
Till today I still feel real estate is still one of the most important investments that needs to be considered