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Is It Good To Invest In Real Estate During High Inflation?

It is always good to invest in real estate. Real estate investment is a good long term investment as it generates steady returns and creates wealth for the investor. However, there are certain factors that need to be taken into account before investing in real estate.

Inflation is one such factor which needs to be considered when investing in real estate. Inflation refers to the increase in prices of goods and services due to an increase in supply and demand.

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Inflation has been around for centuries but recently it has increased at a rapid pace due to global economic crisis, wars and political instability which lead to an increase in supply of money without a corresponding increase in goods and services available for purchase.

Inflation affects all sectors including real estate market where prices of properties tend to rise with time due to increasing demand while supply remains constant or low as compared to demand resulting in higher property prices over time.

If you are planning to buy plot in Lucknow then you should consider buying it before inflation increases further otherwise it may cost much more than what you can afford today if you plan on selling it later on after inflation kicks off again!

Another reason why it is a good idea to invest in real estate during high inflation is that you can get a lot of leverage with your money when you buy property. For example, if you put down 20% on an apartment building and borrow 80%, then you will be able to purchase much more property than if you did not have any financing at all.

This means that if your tenants stay in their apartments for five years and pay the rent every month, then at the end of that period, your property will be worth much more than what it was worth at the beginning of the transaction because of appreciation on top of capital gains from rents collected over time.

3 reasons why investing in real estate is a great idea regardless of the level of inflation:

Stability

Real estate is one of the most stable assets in any economy. It doesn’t matter if you live in India or the US, real estate is always going to be considered as one of the most stable assets. This is because the housing market will always be there no matter what happens in other markets. In fact, even during recession, people still buy and sell houses as they are considered as safe havens for their money. People tend to look at their homes as an investment because they know that even though prices may fall down at some point, they will not lose money on them like they would if they invested in stocks or bonds.

 Real Estate is Less Volatile than Stocks & Bonds

One of the main reasons why people look for best place to buy land for investment is because its value tends to be less volatile than stocks and bonds. For example, if you were to compare two homes side by side, one priced at 10 Lakhs and one priced at 20 Lakhs, there’s a good chance that both would be worth about the same amount when you sell them years later. If one home lost 20% of its value during an economic downturn while another gained 20%, the former would have been more volatile during that period of time than the latter.

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Higher Returns Than Stocks & Bonds

Another reason why real estate is such a great investment is because it offers higher returns than stocks or bonds over time. Historically speaking, stocks have returned somewhere between 6% and 10% annually over the long term while bonds have returned about 3% or 4%..

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