Investing in real estate has often been looked at as a rich man’s sport in India. Until a couple of decades back, real estate investment would have been a luxury indulged in to boost social status. Now, however, more and more Indians are beginning to prescribe to the theory that real estate investment is a tried and tested way to make your investment pay ‘forever’. Still don’t believe us? Let us give you a few reasons to convince you.
- Safest option
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world, ’said Franklin D. Roosevelt. Unlike shares and stocks that see variations even in a week, housing remains stable and is therefore safer over a longer period of time.
- Cash flow
Cash flow is the difference between the income and expenses on a property. When you have positive cash flow don’t use it all at one go to reduce debt. Having a strong positive cash flow will offer you more options and space to manoeuvre in the property market.
You get tax rebate as a property owner. As per the 2016 Union Budget, you get a deduction of up to Rs 1,50,000 from taxable income in a financial year as payment towards housing loan. Another deduction of up to Rs 2 lakh per year can be availed for a self-occupied property if acquisition or construction of the property is completed within three years from the end of the year in which the loan is taken.
- Finance options
There are several available options if you are keen to invest in real estate. Banks, non-banking financial organization, private lenders – there are ample options to avail finance for a real estate investor.
- Easily adaptable asset
Real estate is flexible enough to suit every requirement or budget limit. If you are keen on long term growth, build a retirement home for yourself. If you want a continuous income, buy a home which can offer you attractive rentals. If you are buying a second or third home, buy an old home at a lower price and remodel it as per your requirements, thus raising its value.
- Family legacy
Real estate is an asset that you can pass on to your kids. Long term investments need not mean just one lifetime – if handled well, it can last the lifetimes of your children. If well-maintained, property assets continue to grow even over a longer period. Seeing your children’s finances are healthy, can provide you with much peace of mind.
- Pride of ownership
The ownership of home or a piece of land is more tangible and real in comparison to holding any kind of shares or stocks.
If we have succeeded in convincing you, check out our pages to see which properties or land you might be interested in investing in 2017.
