The purpose of investing your surplus money is to make it grow. While there are multiple options available for investing, the best is in real estate. Comparatively, it has better possibilities for multiplying your wealth due to several reasons and here’s a look at some of them:
Looking back through history, the cost of real estate has only gone up with the years and the longer you can hold on to it, the better your prospects. With stock market investments, there is greater volatility and many risk factors that can harm your investment.
Unlike the stock market where your stock’s value can sink into insignificance or a car which’s value depreciates with each year, real estate is a tangible asset which only multiplies in value. Aside from the cost of the plot, the house also appreciates, hence building equity.
People who invest in real estate to earn a passive income end up having their cake while eating it too. Monthly rentals over a long period offer a steadily increasing secondary income even as the capital value of the property keeps growing year-on-year.
Investing in rental properties is a complete win-win situation where the income earned as a rental can be used to pay off the EMI of your home loan. So basically, your renters end up paying off your home loan while you get to own an almost free property!
One of the best benefits of investing in property is that the government gives you tax breaks on interest paid on your home loan. Apart from this, rental income isn’t subject to self-employment tax either. Additionally, you can also claim tax breaks on property taxes, maintenance repairs, legal fees, etc.
There is a reason why real estate investors welcome inflation with open arms. Property investment acts as a hedge against inflation such that the greater the inflation, the more your rental income and the higher the appreciation of your property’s value!
It’s always better to invest in the city’s peripheral areas as they cost less but over the years, as the city expands and pulls these areas into its folds, the cost of the property will increase significantly. If you are on the lookout to invest in real estate, then check out the ‘Under the Sun’ villas located in the peaceful Devanahalli area of Bangalore. These classy villas are located amidst a fruiting orchard and make great investments too. Find more information here: https://www.underthesun.co.in/.