Did you know that real estate is the best long-term investment option to date? It is better than other investment options like stocks, gold, mutual funds and bonds. It is the top investment option considering that it offers lower risk and guarantee returns. Even today, amidst the pandemic, people are still looking to invest in residential real estate. Buying a residential property not only gives you a sense of accomplishment, but it offers many benefits too. If you have been thinking of investing in real estate, go for it because residential real estate will always be a great investment option. Continue reading to know why.
Here are the top 5 reasons why residential real estate will always be a great investment:
Tax Benefits: Real estate offers you tax benefits like no other investment. Owning property allows you to deduct mortgage interest, and usually, state and local property taxes can be deducted, too. Those who use the money from the sale of one property to buy another property can differ their capital gains. This means they will not be taxed on that money as it was used to buy another property. However, you will have to report this to the IRS, or else there are chances you will receive a letter about your pending tax payment. Investing in real estate will provide you with many deductions, which in the end, will help you reduce your taxed income. The tax advantages are even better if you are looking to buy a ready-to-move-in home instead of an under-construction property. For instance, if you take a home loan to pay for a ready-to-move-in property, you are eligible for tax benefits in the same year of possession. You can claim interest deductions up to Rs. 2 lakh.
High Appreciation Value: It is no secret that real estate appreciates over time. You will for sure see a 3 to 5 percent increase in the value of a property per year. Don’t forget the land a property is built on will also increase in value. In the early 2000s, the price appreciation of properties in Koramangala was seen to increase to Rs. 2000 per sqft and by 2012, it increased to Rs. 12,000 per sqft. This is very high compared to the other areas in Bangalore. Of course, various factors influence the appreciation of a property. But there is a guaranteed good return on investment. If you do your research well and invest in a property situated in a good neighbourhood, you are certain to receive a high ROI.
Helps Diversify Your Portfolio: If you are a seasoned investor, you will understand the importance of diversification. It is better to spread your money than to put it all in one place. What better way to do it than real estate? Considering that it is a much safer investment choice and it is less volatile than other investments available. For example, in the last five years, the appreciation of gold has been 12.3 percent. Whereas the property prices of real estate have appreciated 49 percent since 2010. Making real estate a better investment option any day. This is the case always. Real estate appreciations are higher than any other asset.
Leverages Your Investment: Investing in real estate is the only option that allows you to leverage your investment. You get to maximise your returns while investing less in a property. You get to own a property by investing only 10 to 20 percent of the property value. Over a period, you go on to pay the mortgage price, and at the same time, your property’s appreciation value continues to increase. This way, you will receive a profit. Let’s say your mortgage was around 10%, and your property appreciation is 7%, you are still getting a profit of 3%, which is great. That is leveraging!
High Tangible Asset Value: Real estate is a tangible asset. Your land or home that you have invested in is worth something. Unlike stocks & mutual funds, where if the market crashes, you lose little or all your investment. Also, if you ever wish to get rid of the property, you can do that. You are sure to walk away with the initial investment and some amount of capital gain, if not a lot. That’s a win-win situation for you. Since it is a tangible asset, it offers protection against inflation too. The homeowners’ insurance will protect your real estate investment, even in the worst-case scenario.
So if you are thinking of investing in real estate, there is nothing to worry about. Do your research well and buy a home from a well-renowned developer in a good neighbourhood like Advaitha Aksha. This luxury ready to move in property in Koramangala is a great investment. It is an IGBC Gold pre-certified project and comes with advanced sustainability features, smart home features, luxury finishes, water conservation techniques and whatnot. Sounds like your dream home? Don’t delay because only a few units left. Hurry! Book a site visit today!