The next step an earning individual considers after earning is investment. While there are many options for a person to invest their money, real estate is emerging as a preferred investment option. In India, the real estate sector employs the second largest number of people after agriculture. According to a report of a leading property research company, India’s real estate sector is projected to grow at a phenomenal CAGR in the period 2021-2025. The core factors that power this sector in India are rapid urbanisation, the rise of the middle class, rising housing needs and a favourable home loan scenario. With the rapid increase in household savings, more and more people are increasingly investing in real estate for capital and also earning a monthly rental income if the property is not bought for self use. In this article, we will tell you why real estate is a good investment option. codename must have lower parel
Government support
For motivating more and more people to invest in real estate, the government has come out with a series of initiatives such as setting up a National Urban Housing Fund, and launching the Pradhan Mantri Awas Yojana, under which eligible home buyers will get an interest subsidy of 6.5% on a home loan up to ₹6 lakhs. The setting up of RERA, or Real Estate Regulation Authority, has given investors the confidence to invest in under construction real estate projects without the fear of their money getting blocked and the property possession getting delayed. All builders have to compulsorily register their new housing and commercial projects under RERA and obtain a RERA number. Also, they have to deposit 70% of the amount received from investors in a separate escrow account with a scheduled commercial bank. From this account, they can withdraw funds only for progression of the specific under construction project, and not for any other project of theirs or for some other purpose. The Maharashtra government has reduced the stamp duty on real estate transaction for all buyers, and offers a further reduction on this reduced rate for women real estate investors. This initiative offers investors a fabulous opportunity for investors to invest in real estate in Mumbai and Pune. lodha must have commercial
Rising demand for rental housing
With many sectors such as IT and Healthcare reporting unprecedented increase in business, they are on a hiring spree. They also have a good budget for providing housing to their senior personnel who are the main propellers of their business success. This has lead to a surge in demand for properties in cities such as Mumbai and Pune, as they are the hub for these sectors. Investing in properties in close proximity to areas which have a high concentration of properties in these sectors, as the companies will surely lease such properties for housing their key employees.
Tax benefits
The government offers multiple tax benefits for those who park their money in real estate. Investing in housing property is one of the best ways to reduce your tax liabilities and increasing your wealth. If you’ve taken a housing loan to buy your investment property, you can claim exemption on your loan interest under Section 24. Under Section 80C, you are eligible for exemption on repayment of the principal amount. Investing in real estate also protects your wealth as it offers you the opportunity to write off a percentage value of your property as depreciation every year. This reduces your overall tax burden and you get to keep more money for yourself, which would have been included in your taxable income.
In conclusion, if you can conveniently afford the down payment and the home loan EMIs, real estate is the perfect investment. Call us on +91 77860 78603 for the best property investment advice.
