They say that the day you start earning is the day you should start investing but you haven’t done that, fret not for there is still time. No one becomes rich by working hard. But you can become rich by making the right investments, especially in real estate. Unlike other investments where you invest a sum and forget about it until eternity, real estate can be a great source of passive income.
Here are 7 reasons why you should invest in real estate:
You can save on income tax under Section 80C which allows incentives on repayment of home loans. You can claim tax deductions of up to 1.5 lakh rupees every year on the principal.
If you do your due diligence and buy an under-construction property, you will have doubled or even tripled your investment if you decide to sell later. It also guarantees your retirement and you can also get returns on it for your child’s education in the future.
Prevents frivolous purchases:
You can look at purchases in two ways – something that makes you happy instantly vs something that guarantees your happiness in the future. If you always choose the former reason, you might not have anything left to enjoy in your old age. This is why investing in real estate now can make you happy later.
It is not as difficult as it used to be to get a home loan. There are plenty of attractive offers especially for young professionals when it comes to real estate.
A steady stream of income:
Once the construction is complete, you can rent out the apartment or house and obtain a steady stream of income without breaking a sweat. This is especially handy if you’re making a switch in your career or if you have additional responsibilities towards your family.
Everyone dreams of settling down and buying a house is the perfect way to do that. You can easily invest in a duplex home today instead of waiting until you’re in your 40s when prices will have gone up.
Real estate is an appreciating asset:
If you do invest in the duplex house interior design, you can easily obtain most of your investment back through rent paid by tenants.
Historically, real estate has proved to be a good investment. It is prudent to check the rates on home loans and the income source before you make the jump. But, it is always better to get a jump start on your retirement plans.