Category Archives: Why invest in real estate

Grihapravesh…towards new beginnings.

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For some, this New Year has brought a lot of new beginnings in their life. January being a season of marriage has witnessed a lot of couples settling down and start a new life.

Home Coming

In our country, Griha Pravesh of a new home is considered to be one of the most auspicious rituals before entering into a newly built house. Once the house is ready, the family moves in on an auspicious day that is determined by the astrological charts. We congratulate everyone who has moved into their new homes.

Like marriage, for many people, owning a home is the fulfillment of their dream. As marriage showcases stability, prosperity and fertility in one’s life so does owning a house.  As one moves ahead in the journey of life, having a stable home is an obvious need.

On this note it is very important for a newly wed couple to own a house that is built with the pillars of love and affection. Another benefit of owning a home is that it gives you complete control and freedom. You get the complete freedom of choosing which things to be placed where. Which wall to be hammered. And of course, it saves you from the hassle of shifting from one apartment to another. Considering the future aspect, your children will have a more secure surrounding to grow and cherish fond memories in their own home.

When starting a new family, the feeling of owning a home is a feeling of pride. It helps you in bringing steadiness in terms of giving security, luxury and comfort to you and your family desired for.

Therefore, in this phase of life when starting afresh, owning a home can play a vital role in bringing you and your family on a concrete ground.

Why invest in Real Estate?

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Real estate investment is simply the purchase of a future income stream from property. Here are some of the key reasons to invest in real estate.

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Attractive and Stable Income Return- A key feature of real estate investment is the significant proportion of total return, accruing from rental income over the long term. This helps reduce volatility, as investments that rely more on income return, tend to be less volatile than those that rely more on capital value return. Real estate is also attractive when compared with more traditional sources of income return.

Gain more leverage- Real estate is one of the few investment vehicles where using the bank’s money couldn’t be easier. The ability to make a down payment, leverage your capital, and thus increase your overall return on investment is incredible.

You can pass it onto your kids- When thinking long-term for your investment, you don’t just have to think your lifetime – you can also think about your children. These investments can be passed onto your children either before or after you pass away.

It’s an asset you can use- Investment or not, your property is still just that – a property. So, should events take a turn which means you have to move into that property, you can (pending rental agreements, of course) whether for the short term or the long term – and, if things change again, you can move back out, leaving your investment intact.

Increased tax deduction strategies- Rental property affords investors with another incredible opportunity to convert personal expenses to potentially valid business deductions. Don’t forget that rental real estate is a business. This means that travel expenses to check on your properties and payments to family members who manage your properties (such as students away at college) can be deductible and increase the tax benefits when it comes to cash flow and the future sale of the property.

The tax write-offs against your other income- Depending on your classification as an Active Investor or Real Estate Professional and your income level, there is a good chance your rental property will not only give you tax-free cash flow, but an overage of tax deductions you can use against your other income. With that said, this is something you want to discuss with your tax professional before investing so your expectations are realistic.