Buying a home is definitely a landmark achievement in all of our lives. This asset not only provides shelter, safety and mental security but helps reserve great returns to reap in the future.
There is an element of prosperity, good luck, new beginnings and auspiciousness attached to the purchases made during Akshaya Tritiya, these elements make us want to buy electronics, cars, gold, book properties etc. on this day. Looking at the major developments taking place in the real estate sector and also considering how gold has held the position of asset creation since ages, it is natural for any investor to think seriously about where to put the money this festive season.
Listed below are some of the advantages that make investing in the real estate sector a safe and a worthy bet:
Safer avenue
Affordable housing schemes like Pradhan Mantri Awaas Yojana (PMAY) and establishment of Real Estate Regulatory authority (RERA) have made investments in real estate all the more safe as well as yielding. Also, to add these developments are going to bring transparency in dealings between builders and customers.
Property and new beginnings
If we observe the trend in real estate pricing; first of all, it is not directly affected by international prices. The growth in real estate sector is a direct consequence of the continuous progress of our economy. Owing to the stability of growth, the country is going to witness considerable growth in coming times and so is real estate.
Income tax exemption on home loan repayment
The Indian government has always shown a great inclination to encourage citizens to invest in houses. This is why a home loan is eligible for tax deduction under section 80C, Section 24/Section 80 EE and when you buy a house on a home loan, it comes with multiple tax benefits that significantly reduce your tax outgo.
Ideal for long-term investment and generates regular income
Property is considered to be one of the best long-term investment options to generate regular monthly income in the form of rentals. Rental income can be as assured as interest income from bank deposits. Elite investors’ portfolios are heavily loaded with real estate. As real estate is a tangible asset, it is also psychologically gratifying for investors to own one. Also, the steady rise in rental income beats inflation. If the property is located in a prime location, appreciation on rental income can be far better.
These days the concept of co-living is gaining quite a lot of popularity, wherein you can get involved with a leasing partner who can further push your property to the interested corporate / parties wherein you can gain greater income.
Better investment option as compared to Gold
While property contributes to wealth creation, gold simply offers an easier option to hoard wealth in a paperless way. Gold buyers can get a loan against gold deposits but ridiculously high-interest rates may deter people from doing so; loan against property is way affordable and offers sufficient liquidity to the investor. Also, buying gold on loan is not going to fetch you tax benefits like property loan repayment that offers a deduction on taxable income.
The real estate industry would be witnessing some phenomenal progress and positive changes in the coming times and what you lock in today is surely going to leave you with smiles in the distant future. Hence, it would be much better if one decided on both the investment avenues after careful research this festive season. Be it an investment in property/real estate sector or gold, since both are synonymous with prosperity and good luck, in a true sense a best investment is that which suits your life phase needs the best.
