One thing that we hear a lot from our elders when we start earning is to save money,start investing, open a FD and what not. We all hear that the stock market will give us great returns in a very short span of time but it is also famous for its volatility. What do we do? Where to invest?
Well the answer is very simple. Real Estate is an investment that will never disappoint you and here is why
Firstly it provides better returns without much volatility. Your risk of loss is minimized by the length of time you hold on to your property. When the market improves, so does the value of your home, and as a result, you build equity.Here you have more control of your investment because your property is a tangible asset that you can leverage to capitalize on numerous revenue streams, while enjoying capital appreciation.
While buying a home we always get property insurance which protects our property during worst case scenarios. The value of a land never decreases, always new projects are introduced in your area, in growth and development is something that always increases and improves with time. Hence, the value of your land always goes up.
It’s never too late to diversify. When we diversify our portfolio, we spread out the risk.It will always serve as a safe tangible asset to mitigate the risk in the portfolio.
Lastly, You can get tax deductions on mortgage interest, cash flow from investment properties, operating expenses and costs, property taxes, insurance and depreciation (even if the property gains value) and other benefits.so don’t miss out on numerous tax benefits that come your way once you are a homeowner.