Top Reasons to Invest in Residential Flats in Bangladesh

You will get various options to invest your money but you will choose one such option among them, which will give you the highest return, and involve less risk at the same time. Residential flats are the investment options that might not give you the highest return, yet they can be your stable income source and will involve less risk. Still, thinking why do people invest in residential property? Please don’t think anymore and read this article to know the top reasons to invest in residential flats in Bangladesh.

Advantages of Real Estate Investing

Real estate investing will serve you plenty of benefits. Let’s get to know the most mentionable ones among them and briefly discuss them:

1. Permanent Home

More or less, everyone has a dream of a permanent home. Many people have permanent homes in their rural districts, but having a permanent address in the chief metropolitan cities like Dhaka, Chittagong, and the like is a different thing. Buying land and building a house on that require a huge investment. If you want to buy a flat, getting loans will be a lot easier, and fulfilling your dream of a permanent home will also become quicker.

2. Stable Cash Flows

If you own a residential flat, it will allow you to rent that flat and earn monthly rental income from there. You only have to make sure that your tenants have sound payment records of paying rent. You need to have all the required documents from them and investigate where they work so that no issues can arise in the future about not paying rent or delayed payment.

3. Possibility of Great Returns

You can earn great returns from your real estate property if its value increases over time. But this sort of appreciation can’t be guaranteed. That’s why you need to check everything clearly while buying the flat and ensure that you are getting the right one.

4. Tax Benefits

Your investment in real estate will let you enjoy certain tax advantages. You can minimize various expenses related to owning a flat, consisting of property taxes and fees of property management, mortgage interest, property insurance, continuing property maintenance costs, repairing costs, and the payments you make to promote your flat to probable renters. Again, if you sell your flat for a higher price than the purchase price, this gain will be taxed as a capital gain rather than as an income. So, here tax rate will also be lower.

5. Lower Primary Investment

In case, you want to invest in the stock market, you will need a huge investment to earn a mentionable return. Again, if you want to make your home on your plot, that will also need a lot of investment, and quite impossible to fulfill it with a lower income. Getting a home loan is also quite difficult. But you don’t need such a huge investment to buy your flat, and getting loans to invest in real estate projects is easier.

So, a lower initial or primary investment will be enough to invest in a residential flat.

6. Continuous Value Increase

There can be a chance of continuous value increase of your flat if it’s situated in such an area where there is a huge possibility of getting several structural developments in the future. If your flat is located at a prime location, then its value will also increase over time. You don’t have to make any kind of customization or development to increase this value.

Recommended reading: Best place in Bangladesh to buy a ready apartment

7. Leverage Opportunity

Leverage refers to the use of borrowed money to increase the rate of return on your investment. It allows you to use only a certain portion of your money and borrow the rest of the amount to meet your demand. As we’ve already mentioned that real estate investment comes with the easier opportunity to take bank loans.

8. Secured Investment

You can invest in so many sectors such as stock, business, share market, real estate company, and the like. Share market investment involves a high rate of risk. The other mentioned sectors also involve quite a risk but the real estate sector investment isn’t that risky because the rental income from your flat will be a regular income source for you if you give that on rent.

9. Passive Income

That flat you’ve bought can be a suitable and stable source of income for you if you rent that. You don’t have to do any work or extra investment to get the rent. So, this can be a suitable example of passive income.

Read this article to know how to reduce expenses in Dhaka according to your  income

10. Inflation Protection

You can see a huge upward tendency in the case of property value. So, investment in real estate property can be a good protection against inflation. If you invest in various properties, it can give you awesome protection against everlasting inflation.

11. Capital Buildup

The chief purpose of investing in real estate property is to build up capital. If you want to sell a residential flat the value of which has increased, you will earn a capital gain, so, your capital will increase. Provided that you invest in the exact property, you can build up your capital.

12. Diversification

You can diversify your investment portfolio by adding real estate investment to it. An economic crisis might occur at any time when the values of various stocks might decrease. In such a situation, the value of your real estate property can still increase helping you to minimize the losses you face from other investment options.

13. Accomplishing and Control

If you own real estate flats, it will let you be your boss. You don’t need to follow anyone’s orders, and that can give you a different feeling of accomplishment. Again, you can give those flats for rent and earn rental income from them, as well as, give shelter to some people in society. You can also rent them for commercial purposes like running an office, and thus can be a part of solving the unemployment issue in society.

Read also: Steps to Follow for Buying Commercial Property

14. Ability to Raise Value

You have the option to increase your flat’s value by developing them with various customized features like modern equipment, tiles, bathroom fittings, kitchen fittings, and the like. You can also develop the exterior by painting and many more. Whatever upgradation you do to your property will help you to raise its value.

15. Thriving Market Size

Bangladesh’s real estate field has a worth of around 6000 crores. Flats of medium sizes from 1200 to 1400 square feet saw around a 39 percent increase in the last 5 years. Bangladesh’s two largest and busiest cities are Dhaka and Chittagong and the real estate business is growing tremendously in these cities. The demand for small apartments is quite high in two of these cities.

In the coming years up to 2025, the real estate sector is likely to see a further increase.

Read also: Top real estate developer company in Bangladesh

Final Words:

You must have become more eager to invest in the real estate sector after reading this article on the top reasons to invest in residential flats in Bangladesh. If you need further assistance, please contact Best – Tech Properties Ltd.

Bonus part: How to make your first flat looks elevated and cozy