Top 7 Reasons Why You Should not Delay in Real Estate Investment
I hate the calendar and the clock! Every time I look at them, they remind me that time is ticking away. In a few years’ time, I shall no longer be a youngster starting up my life; I shall grow up into a middle-aged person. Along with that would come the expectations to be responsible for not just myself but my family and to rise to the occasion in the event of any untoward incident. The thought is really daunting!!!However, the situation is not entirely hopeless. I look up to my senior colleague, S. Praveen Kumar, AGM of our company’s finance department. He is elder to me by just four years, but has earned the reputation of having achieved remarkable financial success. A casual conversation with him over tea yesterday revealed to me the primary reason he attributes to his success. Praveen says that he has not done anything remarkable; it is just that his success is remarkable for his age. The difference is significant, he explains and attributes his success to the wise decision of starting investing in real estate real early.He, being in the housing sector for quite some time, has garnered all the precious knowledge of this industry. He gives me the top 7 reasons why I should follow in his footsteps straightaway and not delay investing in real estate.
1.Home Prices Getting Dearer:
Do you know that Bengaluru has recorded a real estate growth of 12% in the previous year? This means the prices of new homes are getting dearer every year. Moreover, the trend does not look like it would shift towards the other side. The more you wait, the more you will be end up paying for your dream house. Just keep in mind that property prices are soaring up high with 15-30% hike in a year and you have to dream of getting such a salary hike annually. So you will always end up playing catchup with property prices, if you delay the investment. Hence the only way to deal with it is to not delay the investment.
2.Friendly Financing Options:
We all are seeing that the cost of most commodities is rising up rapidly. However, on the positive side, it has never been easier to buy anything any time before this. With the advent of credit card, the idea of financing your purchases with borrowed money is totally acceptable today. And, getting loans for investing in real estate has never been. Now is the time to take advantage of the friendly financing options and investing as much as possible.
3.Home Loan EMI Vs. Paying Rent:
Unless you are living in your parents’ home, chances are that you are shelling out a major chunk of your monthly earnings into your landlord’s pockets. Moreover, just like home prices, house rent prices are spiraling up too. Places like Indiranagar, Koramangala, BTM Layout, HSR Layout etc. experience a hike of 12-20% annually and that too for house rent prices. Imagine living in your own dream home paying just as much and not worrying about being chucked out one fine day with a month’s notice.
4.Age does Matter:
You have the most powerful force in the world on your side – time. Being wise with your expenditures, you can actually save enough and also avail loans without much hassle. We all know financial institutions are very stringent when it comes to giving loans to persons in a higher age bracket. So why wait for such a difficult situation to arise? Grab that loan when the time is right!
5.Higher EMIs to Pay as You get Older:
This really is an extension of the above point. Being on the right side of the late 20’s or early 30s really works in your favour when it comes to the time of repaying the money you borrowed towards buying your home. The EMI you would be paying if you borrowed today would be less than that if you borrow on your next birthday. So, take advantage of that fact. After all, you are young only once.
6.Other Unavoidable Financial Commitments:
As you grow older, whether you wish or not, there would be a pile of financial commitments to take care of. It could be in the form of car loans or mutual fund investments or financing your child’s education or paying insurance premiums to take care of the rainy days, a personal loan for the exotic vacation you had with your family. These financial commitments will take away a major chunk of your salary. But you don’t have those financial commitments today and you can choose to invest in a way that can provide stability as well take care of your financial burdens in future.
7.A Great Tax Waiver:
And, last but not the least, investing in real estate is a great way to save money on taxes. God knows how much we strive to do that. Exemption of taxes in any form is a great relief. A home loan interest of up to INR 1,50,000 and a principal amount up to INR 1,00,000 are eligible for tax breaks every year.So, what are you waiting for? It may not be easy, but it’s definitely worth it!