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What are the Benefits of Investing in Real Estate in Nepal?

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In This Post

  • Real Estate and Real Estate Investment
  • Advantages of Real Estate Investment in Nepal

In Nepal, real estate is one of the blooming business. It is one of the best investments you make with your hard-earned money. Various business sector were affected by the Covid-19 pandemic. However, even in the time of crisis, real estate business was still thriving. This is one of the benefits of investing in real estate in Nepal. Besides this, there are many other reasons, such as steady income and tax benefits. Real estate is one of the blooming business. This blog provides various details on benefits of investing in real estate in Nepal.

Real Estate and Real Estate Investment

Before we move on to benefits of investing in real estate, let’s know about real estate and real estate investment in Nepal. Real estate is the property that consists of land and buildings on it. There are five main categories of real estate: residential, commercial, industrial, raw land, and special use. Real estate has always been a top investment option in the whole world. Usually, investors become owner of the rental property. This allows them to have steady income as tenants provides rent on the monthly basis. Investing in real estate does not require any special skills. You just have to be patience and have some cash. For a long term investment, real estate is considered one of the best in the world.

Benefits of investing in real estate

Benefits of investing in real estate in Nepal

The following are the advantages of investing in real estate in Nepal.

Real Estate Investment Creates Regular Income and Cash Flow

If you buy a house or a land, you can give them as a rent to other people. This helps you to earn in a monthly basis as tenants will pay the rent. Also, if your property lies in good location, the demand is always high in such areas. You can keep this as a side hustle while doing your other jobs. Once you invest in the real estate, you can slowly increase the cash flow. This will help you cover your expenses as well as make extra money on the side.

Income Generating benefits of real estate

Increase Equity from Appreciation

Nowadays, if you look around, you cannot find any property that are below one crore. Even one crore is less for today’s property value in Kathmandu. What this means is that the benefits of investing in real estate include the appreciation of capital assets over time. If the current value of your property is one crore, over the period of time, it can reach two or more than two crore. For example, a year ago, the value of land at Budanilkantha-13 was 3-5 lakh. But now, the value has increased to 20-25 lakh.

Equity Appreciation benefits of real estate

Real Estate Investment Provides Protection Against Inflation

Let’s begin with what inflation is. Inflation is the decline of purchasing power of a given currency over time. The benefit of investing in real estate is it is an historic hedge against inflation. Your rental income and property value increase with high inflation. Also, when the price rises, the cash flow you get from the property increases too. Investors look forward to hedging against inflation as when the price of the property increases, rents also do.

Deductible Business Expenses Benefits

When you own a property, you have to take care of various expenses. Some of them are repairs and maintenance, property taxes and mortgage interest expenses. But after you give your property for rent, these expenses are fully deductible. As mentioned above, tenants pays the rents which brings monthly cash flow. For example, in Nepal, most of the house owner lets the tenants pay the electricity and water bills.

Real Estate Investment is Expense Deductible

Real Estate Investment Provides benefits On Long Term Financial Security

If you own a property, it gives you a sense of security as the value of the property increases over time. Also, even when you don’t have a job or business of your own, you can just give your property on rent and earn enough for your livelihood. However, the value does not always increase. The location of the property plays an important role in this regard. For example, a property in New Road, Kathmandu will always have a higher value than a property in Hetauda.

Real Estate Long Term Asset

Benefits Of Valuable Tax Advantages Investing Is Real Estate

With real estate investment, you can always have various tax benefits. Some of your costs become deductible business expenses. Also, real estate investors are entitled to lower tax rates for their long term investments.

Real Estate Has Tax advantage

Mortgage Payments Are Covered

When you owe a property, it is quite sure that you will give it for a rent. The monthly cash your tenants provides will be enough for your expenses, including your mortgage payments. In this case, we can say that your tenants are paying your mortgage. On the other hand, investing in real estate gives you complete control over how, when, and where to invest.

Easy Mortgage Coverage

Hope you like the article. If you are about to sell, buy or rent any real estate materials, you can always visit
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