Benefits of Real Estate Investment Bangalore

1. Benefits of Real Estate Investment Bangalore 1 Generates High Returns Private real estate offers investors the ability to generate high absolute returns. An absolute return takes into account appreciation, depreciation and cash flows to measure the amount of money an investment earns over time, and is expressed as a percentage gain or loss on the initial investment. Provides opportunity for portfolio diversification The goal of every portfolio is to create the highest total return with the optimal risk. Most investors are comfortable with a mix of stocks and bonds in their investment portfolios—until the markets’ ups and downs start making them nervous. Private real estate helps investors temper the volatility in their portfolios because it’s immune to the daily shocks of trading. 2 3 Tax Efficient Investors who focus solely on an investment’s underlying returns and ignore its after-tax yields don’t recognize a big benefit of real estate investing. Income generated by properties is generally shielded through depreciation, providing investors with the long-term benefits of substantial cash flow and very little tax burden. 4 Provides leverage advantage One of the greatest advantages of investing in real estate is your ability to use leverage. In real estate, leverage allows you to achieve a much higher return on investment than you could without it. Real estate investing allows you to use leverage when you buy. Using leverage in your real estate investments can have a big effect on your financial statement. https://yieldspace.com/