Tuesday, 25 October 2016

Real Estate: A Paradise for Risk Averse Investors


The job market these days is as competitive as it gets, and saving some extra nickel is not enough to fulfil unexpected situations. Investing money is good way to take care of the future needs, may it be emergencies or foreign trips, some extra money can buy the happiness. But there are many factors associated with that scare the average investor due the risks involved.

But real estate is one of those investment destinations that appeals to the risk averse investors. Although there are a wide range of sophisticated financial instruments available that can provide good returns including stock market, bond market, mutual fund, private equity etc. the easiest way to earn a substantial yield on investments with the least risk exposure is real estate. Real estate in India is a promising sector with much demand in Kanpur. The investment options span from REITs to traditional quick flips. Investors can buy property from Real Estate Developers in Kanpur at a lower rate and sell it when the increased demand raises the prices. 

The reasons why real estate is the best investment option are:

Appreciation: stock markets are always like roller coaster rides, sometimes they go high up and sometimes hit rock bottom and to top it all off it also mimics twist and turn feature of the rides. But if you have a property, the chances of its appreciation are usually on the positive side. 

Rental Income: The utilisation of an asset directly affects it attractiveness as is evident in case of real estate property. A property can be utilised in several ways and among the popular ways, renting it is one. Income from rental property ensures you get extra money for the month still being an asset that can be liquidated anytime.

Flexibility: The best part about real estate investment is the flexibility you get. If you have a few residential Plots in Kanpur for instance you can sell it or build a house on it then sell it or even rent it, the choice is yours. 

Knowledge: When investing money in more sophisticated financial vehicles, investors need to aware of the trends, some standardised terms and mechanism of the market. But not all investors are equipped with that kind of knowledge base to be able make any sense from it. Real estate comparatively is a much more general when it comes to knowledge and involves some basics of business and trading that even the lowest of all can understand.