Why Should You Go For Real Estate Investing At A Young Age
What are the benefits of buying a property at an early age? Why people opt for realty investment as compared to other forms of savings?
Monika Kashyap, 28, a self-independent woman residing in Mumbai is looking for top high-return investment options.
For some time, she is comparing the benefits of different forms of savings instruments like the National Savings Certificate, Public Provident Fund, Kisan Vikas Patra, and Recurring Deposit Schemes of several banks. She has also consulted a share & commodity trader about attractive investment plans and their Return on investment (ROI) in the market. Though she is attracted towards the metal & agricultural commodities and IPOs for outlaying money the risks associated with these have left her in a dilemma. After a considerable thought towards the investment, she has decided to avail of home loans and invest in property because of both high ROI & less risk involvement.
To invest in real estate, first, we know the market. Which areas are suitable for investment? When is the best time for realty investment? Who are the prominent builders and how much time do they take to complete the housing project? What is the average price per sq ft in the locality? What are the essential property and housing loan papers? Knowing your property market keeps you ahead and likely, you make the right decision.
The several benefits of investing in the real estate sector are mentioned below –
1. Tax Savings – If you avail home loan on any property, you are entitled to receive a rebate in your Income-tax. People usually apply for home loans in the late 30s. If they invest at an early age or in their 20s, they would get rebates and start saving from an early age.
2. High ROI – Compounding is the 8th wonders of the world
While making an investment, we should remember this mantra. As compared to Kishan Vikash Patra, National Savings Certificate, Public Provident Fund, Fixed Deposits, Life Insurance Policies, the ROI on real estate investment is more in most of the areas. The compounding in property prices fluctuates in a city or location owing to the performance of the economy and varied infrastructure policies but ultimately, you get some more.
3. Little investment risk – Investment in shares, commodities, and currency comes with a certain amount of risk. Unexpected market events, outside your control, can result in your loss of capital. This is the reason why most people prefer to invest in property instead of opting out of trading options.
4. Asset Creation – In societies, we can see property passing from generation to generation. When you purchase a property, you create an asset for yourself and save taxes on home loans. In the long run, the value of assets increases multiple times.
So, we have seen buying a house is a good investment at an early age. Though there are some challenges like little income, less life experience, and maintaining an optimum credit score for home loans but the magic of compounding will increase the worth of your property manifolds.