30 years ago investing in real estate was considered a luxury. Considered luxury by the middle class, real estate is now leading a lucrative industry and now middle class to rich people are fearlessly investing in real estate sector.
Like mutual fund, share market, no initial loss and multiple profit guarantee is only available in real estate sector. Here are some facts to prove this is true
A safe choice
There is no safer place for a man than home. Also the investment made in that house is safe. There is a possibility that our investment in stock market and commodity industry will increase manifold in very few days. At the same time there is a risk that our investment will be zero. But as far as real estate is concerned, the land or house that we have bought will definitely go up in a few years and there is no history of going down.
Multiple finance facilities
It is not easy to get finance banks to buy other goods or start a business. But all the banks and non-banking financial institutions are competing and giving loans to buy houses and land. The main reason for this is that real estate loans are often defaulted.
Cheap interest and practical loan
Compared to other loans, getting a home loan in India is very easy. Banks that charge 14% interest for buying a car or bike charge only 9.25 to 11% interest for buying a house. Instead of paying 15% interest on personal loans and spending heavily, we can improve our financial status by taking low percentage home loans.
Everyone needs certainty
Food, clothing and shelter are three essential needs of a human being. So it is best to buy the house that every man needs. There is an opportunity to buy houses or plots as per our budget. And there is a way to generate income through this.
If you buy a house with a loan and then rent it out, you can almost pay off the loan using that rent. After a certain number of years, the house will give us income, and if we buy an old house at a low price and spend a certain amount on repairs, the house will become like a new house and its value will increase.
No hassle and expense of brokers
If you invest in the stock market you have to pay commission to brokers for every trade you make. Brokering agents occupy a large part of our income but in case of real estate only one time commission is enough. Moreover, many websites now help you to buy a house without a broker. Apart from that, there is a lot of real estate news on websites and daily.
No fear of fines
If you buy an item on credit card or personal loan or EMI, you must pay the monthly installments by the specified date. Otherwise there is a risk of paying huge fines and stress along with affecting the health. But buying a house does not have this hassle. If you buy a house and rent it, there is a simple process of buying the rent and paying off the loan. So what kind of us
Growth rate is high
Even if we buy any item including car, bike, that item only incurs extra cost to us and there is no income. But there is income only at home. Apart from that, the value of the house also increases every year. After buying a house and renting it out after retirement, you can buy that house for a large amount and buy another house in a different location for a smaller amount.
What other benefits are there?
With the growing population, even a place that is a little further away from the metropolis is becoming more valuable over time. If new hospitals, schools, shopping malls and business establishments come up, there is a possibility that the value of the land that we have bought will increase manifold. Even if you buy a house in the suburbs, it is certain that the value of the house will rise and one day it will reach its peak
It will help the next generation too
The house we buy is an asset that will be used throughout our life and will help our children, grandchildren and future generations as well. The stocks we buy in the stock market do not help our generation much. But houses and plots are not like that.
Tax credits available
Home loan borrowers also get tax relief. There is a possibility of getting tax relief on the purchase of large properties up to Rs.1,50,000. Home buyers with loans can enjoy this tax benefit.
So investing in real estate is not only safer but also a profitable investment than investing in any business including stock trading. If everyone follows this real estate investment that will help not only us but also our generations then the dream of a home will be fulfilled for everyone in the country.
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