Pros and Cons of Real Estate Investment in Kolkata
January 10, 2023
As the coin has two sides, both good and bad. The same goes for real estate investment based on the market condition and your financial strategy.
Investing in luxury residential projects in Kolkata can generate regular income. But it also comes with some difficulties, like buying residential properties demands huge investment and comes with a maintenance cost.
Let’s Dig Deep into Understanding the Real Estate Investment in Kolkata:
Pros of Real Estate Investment:
Regular Source of Income-
If you maintain your property carefully, a good return is expected. When investing in luxury residential projects in Kolkata you can easily recover the cost of capital investment within ten years.
You must be wondering how? The answer is simply by renting, as there is a rise in demand for renting residential areas.
Also, there are other ways how a piece of land can be utilised, like it can be leased out or can be turned into an event centre that can be a good source of income generation.
Great Inflation Hedge-
Real estate investment can be a game changer even when inflation knocks on the door. This is because it will not go down irrespective of the economic scenario. Whereas investing in stocks, shares and bonds cannot beat inflation.
Also, if we talk about future income, real estate investment doubles its value every ten years, and the prices do not fluctuate regularly.
Tax Relaxation-
According to section 80C, purchasing an apartment for the first-time, property owners in India enjoys the benefits of tax deductions.
Cons of Real Estate Investment:
Lack of Liquidity-
Reselling a property is not that easy because properties are fixed assets. You cannot just sell it without any market research, and it's a time taking process. It might be a drawback for people who are in urgent need of cash.
Moreover, as the proverb goes- “Haste Makes Waste”. Similarly selling a property without proper market understanding and price estimation ends up in taking a bad decision.
Difficulty Management-
Managing different properties whose location is in different places is really a difficult job as it needs proper maintenance.
Also, managing property comes with maintaining cash memos, accounts, income tax returns and advertising the apartment before prospective buyers.
Investment in real estate properties might have some positive and negative effects. But it’s a good option for a long-term investment. Regular income is one of the main focuses of investing in real estate. Above all, it aids in tax saving and beats inflation. But it doesn't work for those who might need to resell it and are in urgent need of cash.
Make Your Cosy Corner with Salarpuria Group:
Salarpuria Group is one of the best Indian real estate developers, giving you the life of your dreams. We offer 2BHK, 3BHK and 4BHK flats in Kolkata with mesmerising interiors. Starting from luxury amenities, all-round security to ease of connectivity, we have it all in a single palate.
Come and have a visit to the apartments by the Salarpuria Group and experience a whole new aura of life mixed with modernity and classics.