The human beings basic requirements hinges on roti, kapdaaurmakaanor food, clothing and shelter for which we struggle all through our lives for ourselves, our children and other family members. One of the biggest dreams or aspiration of a common man is to live in his own house, sit in his own balcony with his family, friends, relatives and sip a cup of hot coffee.
Investing in a house or a property is indeed a good investment considering the fact that over time the value appreciates and moreover offers a lot of financial security and comfort. Despite being an asset that requires substantial investment compared to other assets people’s priority still remains to be real estate due to the fact it emotionally satisfies the existence of lifeand offers a sense of achievement and satisfaction.
In their quest to own a house people beg, borrow and steal (pun intended) in their life times and ensure that even after theirtimethey leave behind a secured asset for their near and dear ones to enjoy. Apart from offering personal comfort it also offers sense of ownership, allows to settle down, takes away a lot of pressure and also acts as a fallback asset during old age by way of earning income from mortgaging the house through a new evolving concept called “reverse mortgage”.
To encourage investing in houses for self-dwelling purposes government huge offers tax benefits by way of deductions (Section 80 C & Section 24) on the principal and the interest component which saves a lot of tax for an individual. These reasons too add-up enthusing people to own a house.
While investing in fixed deposits offers regular income and gold offers hedge against the unforeseen, real estate offers security. Though this asset may be illiquid, non-tax friendly and one cannot calculate the returns generated on real-time basis, the rush for investing in this asset has not waned. People continue to invest not only for self-dwelling but as an investment as well.
The key to benefit from real estate is to plan prudently and not hastily.