Top Benefits of Owning Property for Investment

Investment plays an important role in everybody’s life. Mumbai, Pune, Delhi, Bangalore, Kolkata, Chennai, Hyderabad, Ahmedabad are the cities in India which offer a higher rental yield.

All these cities offer a rental yield of 2% and above and show the assurance that the average is not going down anytime soon. Investing in these cities will offer maximum return on investment on properties.

Some people purchase investment properties for tax deductible purposes while the others purchase the properties for more income. Everybody prefers the investments with high return, minimum risk and easy management.

Real estate investment is definitely one of the best ways to invest your money with minimum risks. The ups and downs are too much in other types of businesses.

FOCUS ON TODAY'S AND FORECAST ON TOMORROW'S HEALTHY-WEALTHY INVESTMENTS

If you want investment value to be safe for the generation from now, then buy land and buildings for the investment purpose( Plots for sale in chennai an easy investment options). Select  the best prime location to reap off  the best benefits of investing in real estates.

Look in suburbs where growth is expected with large square feet areas are available at very reasonable rates. To lessen the risks , one can invest in different areas. By investing in more than one,  one can build an asset bank and raise the net worth. The benefits of investing in real estate provides investors with long term financial  security.  

Before closing a deal , conduct a detailed real estate market analysis and make wise decisions.

 

INSTANTANEOUS DUAL INCOME

• Assures and can really generate the most consistent stream of steady income. Help one to accumulate profits and increase wealth. Passive income throughout life. 
• It is a recurring income that requires relatively little effort to maintain. Provides investors with long term financial security.

 

LEVERAGE A UNIQUE FEATURE

• The ability to use Leverage by investing just a small portion of money and borrowing the rest of money to buy a property is a unique feature in real estate investment.
• Many Banks offer loans with a 20% down payment.
• By investing only a small amount, one can enjoy the benefits as if one owned the whole property.
• One can collect all the income that property generates such as rent and enjoy the raising value of the property.

 

HEDGE AGAINST INFLATION

•  A combination of rental income and value appreciation certainly beats inflation. Keep inflation at bay. As the price rises , the value of property will go in the same direction. 
• Real estate responds proportionately to inflation. It is good to note, when the stock market is doing bad, the real estate will perform well.With high inflation , your rental income and property value increases significantly.  In drastic situations, when an economy boom is at its end, real estate properties would still yield good returns. One of the great benefits of investing in real estate is a hedge against inflation.

 

EQUITY THE GREAT FAVOUR

The equity is the difference between the current value of our rental and how much we owe on it. If we see that our property value increased, we can use equity in our favour. We can explore the option of a cash out refinance.

We can use the equity to buy another property or improve our existing rental.  Leveraging the equity in our investment property to buy more property is a smart choice for us.

From the above points it is clear If we have an investment property , we can also use the existing equity in the property to get another loan or to purchase another investment property.

SIGNIFICANT TAX BENEFITS

Owning a rental property allows one to get advantage of some significant tax benefits. The list as below

 

●    Tax breaks for property depreciation

●    Tax breaks for property taxes

●    Tax breaks for maintenance repairs

●    Tax breaks for insurance

●    Tax breaks for legal fees

●    Tax breaks for cost of services ( rental property management,

                                              Legal consultation or services  )          

●    Tax breaks for Travel costs associated with the property.

●    Lower tax rates for long term investments.

 

INSURANCE COVER

• Real estate is the one of the few investments that can be insured and protected from damages.
•          Investors are able to claim damages when something unexpected happens.
•      Every piece of land can be insured.

  

CONCLUSION

●    In real estate a small down payment can yield multiple times on your investment in the short and long term.

●    It is one of the safest investments one can make , because the value of properties very rarely goes down and even then its only for a short period of time.

●    The return which you get from real estate is predictable and stable compared to other businesses. Steady income throughout their life.

●     The benefits will be very good and appreciation will happen over time with market forces at play.

●    Flexibility to sell at the right time. Plots for sale in chennai an easy investment options