By Ankur Tuteja  November 14, 2022

Do you want to invest in real estate but can’t because it requires a huge amount? Let us tell you the easy way to invest in real estate.

Do you want to invest in Real Estate? Many people cannot invest in real estate even if they want to. This is because a large amount of money is required to invest in it. This amount is in lakhs. If you want to buy a plot, flat or commercial property, then a huge amount is required for this.

A thoughtful investment in real estate can give you manifold returns. We are telling you the easiest way to invest in real estate. You can do this through a Real Estate Investment Trust (REIT). First, let’s know what is REIT.

What is REIT?

Just like a mutual fund scheme invests in shares or bonds by pooling money from multiple investors, a REIT invests in retail assets by pooling money from investors. This generates regular income for the REIT. Also, the value of the property in which he has invested keeps increasing. This also benefits him. REIT invests in commercial property. It may have a mall, shopping complex, business park, etc. This investment gives him regular income in the form of rent.

REIT comes under SEBI

SEBI made rules for REITs in 2015. It has set the conditions related to the investment of the REIT. REITs are required to invest 80 percent of their funds in fully ready and rentable properties. Its objective is to earn regular income. SEBI makes necessary changes in the rules related to REITs from time to time.

As per SEBI guidelines, REITs have to distribute 90 percent of their income to unitholders (investors). He distributes this amount to the unitholders in the form of dividends or interest. This gives the investor an opportunity to earn regular income on his investment in the REIT. Since there is no need to invest several lakhs of rupees in REIT, so even a common investor can earn good profits by investing in real estate through it. Generally, REIT invests in properties that have the potential to generate regular income.

Experts take investment decisions.

Investment?

Initially, the minimum investment amount in REIT was Rs 2 lakh. Then it was reduced by SEBI to Rs 50,000. Recently it has been further reduced to Rs 10,000-15,000. SEBI has made this change to give more and more investors an opportunity to invest in REITs. SEBI has also reduced the minimum trading lot from 200 units to one unit. At present, two REITs have been listed on the stock market in the country. These include Embassy and Mindspace. In the financial year 2020-21, both have given 6-7 percent returns to their investors.

Home and land have always been symbols of prestige, wealth, and honor. Real estate property along with gold is considered the safest way to store wealth. Investing in real estate is one of the most popular investment strategies.

Investment in a house and land gives you a good income option apart from your normal 9-5 job. Many people consider investing in real estate as their first business as land and houses offer the safest and most attractive returns. Let us tell you the five advantages of investing in real estate.

1. Good Returns Over Time

The value of real estate always increases over time. Apart from this, the rent also always increases with time. Statistics show that the longer you stay in a real estate property, the more profit you will make. The stock market is also considered a good investment option but there is a risk of loss in it. But real estate provides control over investment. Being a physical asset, real estate can be used to raise capital as well as a source of income. Whenever you offer to sell your home, you will definitely make a good profit.

2. Saving in Tax

Investing in real estate is a better option for tax savings and a balance between income and tax. Rent income is not taxable. Also, the government provides tax exemption for mortgage interest, insurance, maintenance and repair costs, etc. Investing in real estate for a long time saves tax and also increases your wealth.

3. Regular Rental Income

The biggest advantage of investing in real estate is that you not only get rent every month, but its value also keeps on increasing. Your property ensures your monthly income under all circumstances. You can use the rent from the property for the house expenses. If you want to make more money from rent money then you can invest it elsewhere.

4. Compared to equities,

real estate is more stable than the risk-free stock market. Trading in stocks and derivatives is risky. To make money from the stock market, you need to be knowledgeable about the stock market, but real estate investing does not require any special knowledge. Even a beginner can do it. Apart from giving you a stable roof for several generations, it is safe and will likely give better returns in the long run.

5. Clear and real property

House and land have always been real assets. There is nothing virtual in this. You can tackle tough times in any tough time by mortgaging a house or land. Government or companies give more priority to house-land.

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