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Is Buying a House Considered a Good Investment for Your Idle Money? Truth Revealed!

Owning real estate has always been associated with being wealthy, having financial stability, and even maintaining status. It is considered to be one of the safest ways of securing an individual’s wealth. Of course, there are numerous alternatives to invest money such as fixed deposits, bonds, stocks, mutual funds, or even cryptocurrency! However, real estate has continued to be one of the safest and profitable avenues when it comes to a long-term form of investment.

Now, many people may have doubts about this, especially considering the fact that real estate can be expensive. Of course, most homebuyers take the help of home loan plans to arrange for the finances, but is all this worth the trouble? Let’s find out!

  • Real estate appreciates in value

Over time, real estate always increases in value. By investing smartly, you can end up with a huge profit when it is time to sell the property. Historically speaking, the longer a property is held on to, the more money it can make you. Now, there can be phases where the real estate market does not do well, however, once this phase is over, your property value is bound to appreciate.

  • You can enjoy rent benefits

Even if living in the property is not necessarily the primary goal, buying it can still be a good option if you are to rent it out. Getting rent every month is like getting an additional monthly income. With your income plus the rent, managing monthly expenses can get easier. In addition, rent tends to increase over time, which again works in your favour.

  • There are various loan plans to finance a property purchase 

Since most buyers rely on home loans to afford a property purchase, lenders offer various loan plans. You can consider various plans and choose one that suits your budget. Since lenders offer different interest rates, find a housing loan interest rate that is affordable. You can find lenders offering 20-year repayment tenures too, so paying off the EMIs would be convenient.

  • Home loans offer tax benefits

According to the Income Tax Act of 1961, home loan borrowers can enjoy tax benefits on both the principal and interest components of their loan. For the principal amount, Section 80C states that the maximum tax deduction is Rs 1.5 lakh. For the interest component, Section 24B mentions that the maximum tax deduction is Rs 2 lakh.

  • Real estate investment is a low-risk alternative that can offer high returns

Earlier, people were worried about unattended properties being illegally occupied by land usurpers. However, with systematic registration processes including biometrics as well as proper documentation, it becomes impossible for anyone to illegally occupy or sell your property by fraudulent methods. Also, investing in a property can be much safer than investing in stock markets.

So, if you do decide to apply for home loan and invest in a property, speak to a lender to understand their home loan products. Also, make sure to check with the lender regarding their home loan eligibility criteria to understand the loan amount that can be approved.

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