Taking further our discussion about real estate as the smartest investment tool in terms of tax benefits, appreciation and passive income, let us look at a few more factors that make real estate investment, a smart option.
Economic stability
Economic stability has always been a national and multilateral concern. India is the 6th largest economy in the world and still a growing economy, and with it growing its major contributor; Real Estate industry. In a sense, this sector brings a certain stability to the overall economy. While a sector like Share market is a lot more volatile, Real Estate sector is much more stable and continuously rising. So even after you retire in, say 25 years from now, the yield and value of a real estate asset will continue to improve – improving your net worth, each year.
Properties in well located areas, supported by good supply and demand, rarely experience major crash overnight, or even over a longer period of time. Investors in real estate can thus avoid risk prone areas by simply researching the areas and properties before they buy. A home in the heart of Pune city or residential areas well-connected to the city, can certainly assure a stable economic graph for you, for years to come.
Secure your kid’s future
We all think about our future, every once a while. Some would say; no-one holds the key to the future, whereas those who have significantly invested in real estate believe otherwise. They not only have the keys to their future but also to the future of their children. Parents gifting their home to their children during lifetime or after that, is a well-known practice, especially in India. With proper planning and information on legal structures of your property, you can avoid tax consequences and transfer your home to your children, tax free, so that they have one less thing to worry about when they think of their future.
Gain from government incentives
For long, hundreds of thousands of home buyers across India have been facing hardships due to large-scale project delays. The government came to the rescue of home buyers by issuing an ordinance to amend IBC, paving a way for refund of buyer’s money in such cases. Implementation of RERA has ensured timely and quality delivery of the projects.
The government’s flagship mission, “housing for all’, focusing on affordable and mid-segment housing, provides 6.5 percent subsidiary (up-to 2.67 lakh) under PMAY, and has been responsible for enhancing affordability. GST has also provided much relief in terms of prices by eliminating multiple taxations and zero tax on ready to move properties. So it won’t be wrong to say “if you are willing to invest in real estate, the government is with you”.