Wednesday, 13 December 2017

Key Reasons NOW is a Great Time to Invest in Real Estate

If you are looking forward to fresh investments, then investing money in real estate could prove to be your best bet especially for this festive season. There are a lot of reasons as to why should one consider buying a house in this approaching festive season.

Although it’s a good idea to put your money in fixed deposits, equities, mutual funds or gold, but if you are planning for a bigger investment then undoubtedly purchasing a house should be your choice. Also, market trends clearly indicate that investing in real estate would assist you in earning better returns than any other asset class. Also if you are buying a second home then tax benefits on the interest payment of your home loan which you get can’t be neglected. So by investing in real estate, you could make this Christmas much merrier and joyful.

A second home is really a good investment option if you choose to gift yourself a retirement home. In case if you are living in a city away from your hometown, then buying a second home in your hometown could be a wise decision in case you plan to settle there after your retirement. Buying a new house could also be seen as a fixed source of income for you after your retirement if you put it on rent. Another source of income could be buying the property at a vacation spot or a tourist spot. You can also visit your house anytime and relax with your family and friends anytime you wish being the owner of the property. It will give you an easy switch from one surrounding to the other. If you have properties in two different cities, you can consider shifting from one city to another any time you want. Sometimes a change of place is all you need maybe.

The Union Government in the budget of 2017 sent repercussions in all the directions. When it came to buying a second home, individuals witnessed both good and bad news. On the brighter side, affordable housing has got infrastructure status. As a consequence of this, it would provide developers with cheaper sources of finance. The allocation towards Pradhan MantriAwasYojana has also been increased. These efforts are being made to transform the notion of “Roof for every family” into reality. As per the current Income Tax rules in India-

  • An assessee is exempt from paying income tax for principal amount repayments up to Rs. 150,000 under section 80c (along with other benefits in this section).

  • Interest paid on housing loans up to Rs. 2, 00,000 is also exempt from tax under section 24b.

Thus, buying multiple houses & renting them also fetches rental income and certain tax rebates are also available to the assessee for such form of rental income subject to certain conditions which need to be fulfilled. So it’s really the best time for people to put their money in the real estate sector. These are broadly the reasons why people choose to invest in residential properties as an investment. Thus buying a house would definitely spice up your Christmas season.

Tuesday, 5 December 2017

Real Estate investments always scores high! Why?

Real estate is a flourishing market. We find almost everyone investing in properties and seeking for guidance in choosing a good property. Be it a shopping complex or constructing homes, everyone looks for is value. From industrialists to investors, the one thing everyone is looking for is to diversify their profits, thus the real estate offers them a great opportunity.
On the other hand, however, real estate is known for being an expensive affair. However, those who are looking to explore the real estate market, here are some great reasons why real estate investments will always score high.
1.Sense of ownership

The first reason why everybody wants to buy a home is that investing in a property gives a sense of ownership. Being a noticeable asset, it also gives a sense of security to an individual rather through owning stocks and bonds as your investment has a physical presence.
2.Tax Benefits:

If you are looking for long-term capital gains, purchasing properties will be one of the best reasons as the customer receives tax exemptions from the government on investing in a new land or house.
3.Appreciating asset:

One of the things that increase value as time increases is property, that is, a perk of investing in property is that it gains with time. For example, property valuations in Chennai have grown exponentially almost 70% over the last 5 years. Property rates have simply sky-rocketed. This high rate of expansion and availability of facilities boosts the value of your property even more. These external factors too contribute to turning your investment into a valuing asset.
4.Protection against inflation:

Inflation is when there is an increase in currency value. Real estate is known to be one of the best ways to combat inflation as the value of the property increases as currency value increases due to inflation. With that when the availability of land and the constant increase in population, real estate investments becomes one of the safe bets against inflation.
5.Additional Income:

We all always welcome a little extra cash. Investing in property guarantees that. This income is produced by renting the property. Looking at a comparison, between an income of Rs. 50,000 generated from a business which has additional taxes and the same income generated from a rental property, which is more profitable? It’s the Rs.50, 000 generated from the rental property. This is because our Government offers tax benefits due to devaluation costs which include property maintenance and various labor charges incurred for repair work and bill payment. This income is created by renting your property. Renting as a commercial undertaking is also extremely profitable. On the whole, renting becomes quite profitable.
6.Leave a legacy:

The property remains in the family, even after the initial buyer is gone. Unless the successors decide to sell it, it remains a permanent investment. The kin will benefit from this value-increasing asset, making it a great thing to leave behind for the family.
7.Safe Investment:

No one suffers from a loss due to real estate. The owner does not need to worry about stocks crashing or businesses incurring the loss because he or she has complete ownership of the land or property. Of course, he or she can decide to rent out the property or sell the property to generate more income. Though proper research is a must while selecting a property and buying from reputed builders is really essential to avoid being fooled.