Investing in real estate has been popular in India. One important reason is that property prices rise in the long-term and offer good returns on investment. Furthermore, real estate investment is less risky compared to other avenues, such as mutual funds and the stock market.
Here are five situations when you may consider investing in real estate.
- If you want to start a family
If you are considering starting a family, buying a home is advisable. You may avail of a home loan to fund the purchase and start your family in your home rather than a rented house.
- If you are relocating to another city
In case you are moving to a new city, you may consider investing in a home in that location. In addition to saving the rent paid, you will enjoy tax benefits on the housing loan you have availed of to fund the property. Section 80C allows you to reduce a principal repayment amount of up to INR 2 lakh per annum. Therefore, in addition to capital appreciation due to rising property prices, the tax benefits help in saving a significant amount providing good returns on your investment.
- If you want to invest in a second home
Today, like most people you may also have a very stressful life due to work and other pressures. If you like to get away for a weekend without having to travel long distances, investing in a second home is advisable. You will be able to find several getaway homes in close vicinity to your residence.
- If you plan to gift your newly married child a new home
Joint family system is India is slowly becoming redundant. Most parents prefer to live alone to ensure their lifestyle is not affected when their children get married. Young newly married couples also prefer to live in their own homes to enjoy their privacy and independence. If you are a parent and want to gift your child a house for his wedding, investing in a property is a must. You may consider availing of house loans offered by different financial institutions.
- If you are a large family living together
If you live in a joint family with a large number of members, you may consider investing in a bigger home. This ensures that all of your family members enjoyliving under the same roof, but more comfortably. Furthermore, you may have to incur higher expenses to buy multiple properties to accommodate a larger family. Therefore, investing in a bigger home to make it cost-efficient is recommended.
Real estate investing has several benefits. However, it is important that you do your research about different locations and properties before making an investment decision. There are many home loans available in the market by different financial institutions so you may avail of them and fulfill your dream of owning a property.
