New Delhi: Buying a house is a dream of many. Compared to other investment options, real estate has multiple benefits. Apart from attractive returns, you also get the benefit of rental income and long-term appreciation of property. It also provides security. There are many other benefits of investing in real estate. Let’s look at them closely.
Inflation hedge
Investment in Bank FD or debt mutual funds are safe options for investment. But it can hardly beat inflation. As compared to these, investing in real estate is safe and it can also beat inflation. With the increase in inflation, both the cost of living and property price rises. So investment in property can act as a hedge against inflation.
Diversify the portfolio
Investment in real estate can diversify your portfolio. Real estate performs differently. It spreads risks among other options and provides stability. It has lower correlation other financial assets and lowers the risk of the portfolio.
Tax benefits
There are many tax exemptions and deductions available related to housing income and real estate in the Income Tax Act. Additionally, if you hold onto your property for an extended period, you may qualify for capital gains tax exemptions. You can claim deductions on the interest paid on the home loan. There are many other deductions available which can lower your tax liability.
Rental Income
You can also make extra money by renting out your property. With the increase in cost of living, rental prices also increase. It can also become a source of income after retirement.
Safer than other options
Being a physical asset, purchasing a property gives a sense of security. Stock market and mutual funds might give you a good return, but it can be quite risky due to market volatility. Investing in real estate can be safer than other options like gold, cryptocurrencies as it is more reliable.
Advantages of Real Estate investment: Investment in Bank FD or debt mutual funds are safe options for investment. But it can hardly beat inflation. As compared to these, investing in real estate is safe and it can also beat inflation. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
