What are the advantages of property investment?

When it comes to investing, there are numerous options. Investing in real estate is one of the best financial possibilities to explore. Investing in Real Estate has various advantages that distinguish it from other sorts of investments, such as stock investment. The three advantages are as follows:

Numbers Don’t Lie.

Let’s look at two examples to see how this works.

Case 1 – Assume you rent a three-bedroom house for 20,000 INR per month. This is far lower than the actual rental values in cities and other residential suburbs. Let us also assume that the average property rental value rises at a rate of 5% each year. Again, this is far lower than the typical.

Case 2 – Assume you purchase a ready-to-move 3-BHK home for 40 lakhs. You take out a twenty-year mortgage.

Here’s a look at the figures in both cases.

As you can see in this example, renting a property results in about the same cost as buying a house. When you buy a home, though, you are creating an asset that will increase your wealth.

Freedom

While living in a rented flat, the individual or family must abide by the landlord’s rules, which include no drilling holes, no entertaining guests at night, no house parties after 10 p.m., no cooking non-veg at home, and so on.

Buying a property, on the other hand, allows people the freedom to live their lives without being constrained by the landlord’s constraints. Property investment in Karikudi is a wise decision.

Hedge against Inflation.

The unexpected rise in the economy’s inflation rate can affect the cost of living for families/individuals, including the growth in investment property values.

Inflation allows property landlords to boost the amount they demand rent, putting an additional burden on tenants. The value of investment properties rises to compensate for inflationary pressures.

When you own a home, your mortgage payment is not influenced by inflation because it is pre-determined at the time of the agreement with the bank, implying that the absolute worth of the property falls with inflation. This is a blessing in disguise for the owners because they no longer have to bear the additional cost of paying the extra rent. As a result, buying a home might give you additional property investment security amid inflation.

Pradhan Mantri Awas Yojana(PMAY)

With effect from 17.06.2015, the “Housing for All” Mission for urban areas has been introduced to give central assistance to implementing agencies. Under this mission, the Credit Linked Subsidy Scheme is available.

Criteria and Benefit:

For Middle Income Group (MIG) – 1

• Under India, no one should have a residence in their name.
• The annual household income should range from INR 6,00,001 to INR 12,00,000
• The carpet area of the apartment should not exceed 90 sq.mt (969 sq.ft)
• Subsidy benefit of 4%, i.e. Rs 2,35,000/-

For Middle Income Group (MIG)– 2

• Under India, no one should have a residence in their name.
• Annual household income should range between INR12,00,001 and INR18,00,000
• The carpet area of the apartment should not exceed 110 sq.mt (1184 sq.ft)
• A 3% subsidy is available. that is, Rs. 2,30,000/-

Tax Benefits:

Section 80C of the Income Tax Act of 1961 allows for a deduction on principal loan repayments of up to 1,50,000 INR. Furthermore, they can profit from their real estate assets through long-term capital gains.

If the property is sold after two years, the owner may be exempt* from income tax on long-term capital gains by investing in another property. It is determined by the price of the property.

Here are the sections or categories (Income Tax Act) for tax benefit:

After becoming acquainted with the advantages, you are all fired up to go with property investment. You can keep an eye out for important real estate trends and manage your money wisely as a result.