You can consider real estate or property for both short term investment or long term investment purposes. However, property usually reaps handsome rewards in the long haul. Buying property may actually help you create sizable wealth for the future while building more security for yourself and your loved ones.
Property Investment for Beginners- Things you should know
Before you check out the best property investment in Gurgaon and other cities, make sure that you do your due diligence carefully before investing. Check out the real estate sector interest rates on home loans along with the scope of residential property investment in the current scenario. Have a clear budget in place and filter projects in multiple localities. Filter localities on the basis of parameters like connectivity, social and civic infrastructure, and safety/reputation alike.
Property Investment in India- Market dynamics
There are umpteen property investment examples even during market downturns. The Indian real estate market has been growing steadily and in spite of the temporary lull over a few years, Government initiatives like the GST rate cut, benefits for affordable and mid-range housing, and other tax benefits on second homes and capital gains have made the sector more attractive for investors. In fact, those looking to earn from rental income will also benefit since the Government has proposed an increase in the exemption threshold for TDS on rental income.
Types of Property Investment
There are various kinds of property investments in the country. Here’s taking a look at the same:
- Residential investments- These include plots, flats, houses, and so on. You can use the residential property as a second home or let it out for earning rental income.
- Commercial property investments- You can invest in an office or commercial properties, shops, etc.
- Retail property investments- Similar to commercial peers, these cover retail spaces, stores, and the like.
- Industrial investments- You can invest in industrial properties including warehouses, logistics facilities, and even manufacturing units.
- REITs- Real estate investment trusts are like a unique property investment company where you pool in the capital along with other shareholders for buying income-generating real estate. It is like owning mutual fund units or shares/stocks. Dividends are paid out to investors likewise.
How do I start investing in property?
You can start out by taking help from a professional real estate platform like Square Yards. Get help with everything you need from property selection to home loans here.
Is property still a good investment 2020?
Yes, real estate continues to be a good investment in 2020 since prices are stable and interest rates on home loans are at record lows. Future prospects of real estate are bright and this is an opportunity for investors to snap up properties at comparatively reasonable prices.
Is it worth getting an investment property?
Yes, an investment property can appreciate handsomely in the future while also helping you build future wealth and security for your family. It can also help you earn good returns.
What are the advantages of property investment?
There are multiple advantages, i.e. you build future security and get an appreciating asset that will grow your net-worth, have a scope of earning lease/rental income, get tax benefits on your home loan which help you save more money, and also you can always take a loan on your property in times of crisis.
What tax benefits can I get from investing in property?
If you are renting out your investment property, then there is no limit on the tax deductions for interest payments on the home loan under Section 24B. If it is a self-occupied property, then you can get up to Rs. 2 lakh in deductions on home loan interest repayments. For the principal part of the loan repayment, you can get up to Rs. 1,50,000 in deductions under Section 80C.
What are the best options for property investments?
You can consider investing in affordable housing units that come with a raft of Government incentives. You may also consider REITs or commercial real estate which has been doing extremely well over the last few years. Warehousing, retail, and mid-range residential real estate are also good options.