For a person looking to make long-term investments,key asset classes available include commodities, fixed deposits, equities, and real estate. From an asset allocation perspective, experts advise that one should spread out their investments to reduce risks and ideally have a mix of physical investments as well as financial assets present in the portfolio. When it comes to physical assets, real estate has always been among the top favorite for investments.

Why investment in real estate helps?

With limited availability of land, increasing population and people migration from one city to another, realty investment has an upside potential. Moreover, the government’s push for affordable housing, tax rebates and subsidies offered, as well as lower rate of interest offered by banks, makes real estate an attractive investment. One can benefit by real estate investment in multiple ways. You will earn rental yield and also its value will appreciate with time and development of location.

Secure investment: Compared other investment assets, real estate is less volatile since it is not traded. A study undertaken by  Jordà-Schularick-Taylor Macrohistory Database funded by the Institute for New Economic Thinking (INET) asserts that ‘residential real estate, not equity, has been the best long- run investment over the course of modern history’. Additionally, with the rate of interest on home loans being lowest ever in the past 15 years, now is good time to invest in real estate.