While we were growing up, I remember the mark of a well-settled person: buying a house. ‘apnaghar’ was emotional security, a retirement goal, and a status symbol that was every middle-class person’s dream.
After the economy opened up, buying a house was no longer a distant goal. I bought my first house in my hometown at the age of 28. Loan, higher incomes, good projects to invest in has made real estate a viable option for everyone.
Real estate is a tangible asset that cannot vanish in thin air even in the worst of economic situations, unlike investments in stocks, mutual funds, or even deposits, in some cases.
A house is an asset you can use, an asset you can take a loan against, and an asset that multiplies over time. According to a report, real estate has given a double-digit return in the last 10 years.
The appreciation in real estate is more or less stable over the long term compared to other asset classes, and it safely beats inflation even in a downturn.
Real estate can never go out of favor simply since land is a scarce commodity. There is only so much land available, and a huge population is vying for a piece of land to call their own.
You can earn rental income from the property along with safe and secure capital appreciation on the investment. A home loan also gives tax benefits while you are paying the EMIs.
It is important to do a thorough check before buying a property to ensure it is legally clear of any dispute. Check the builder’s reputation and track record. Once you have done proper due diligence and decided on investment, you do not need to study or monitor the investment for the rest of your life. It is a hassle-free asset.
Ensure no more than one-third of your income is going in EMI. Plan to repay the loan as soon as possible.
A permanent address of your own brings peace of mind, discipline of saving and investing, and a stable asset forever. Go for it.
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