The year may not have been a good to invest in physical assets, but real estate has been offering some of the best returns. Although gold steadily lost its demand not only in India but also internationally, the real estate market seems to be booming barring some exceptions.
Gold faced a drop of about 15% as it went from a little over INR 30,000 to a meek INR 26,500 this year. Due to the impact of duties paid for import and the constant changes in the rate of dollar VS the rupee, the prices of gold varies far more domestically than in terms of dollars.
The real estate market in most places seems to have shown an increase in prices though. While residential apartment houses in Lucknow gave a high rate of return, there have been exceptions such as Hyderabad due to the tension and uncertainty related to the creation of Telangana.
Here are some of the many reasons investing in the real estate market is a good option right now-
• Gaining Some More
Using the bank’s money is extremely simple when it comes to the real estate market. From making a down payment to leveraging your capital, the overall return on investment can significantly be increased.
• Experiencing Growth without the Hassles of Tax
Although speculations in any market may prove to be dangerous, in the longer term, the value is sure to appreciate. Investing in real estate can help you save on tax as long as you strategise and plan it out.
• A Tax Free Flow of Cash
With the help of depreciation and mortgage interest deductions, your cash flow can be practically tax free. Most of the times, the investors will never have to pay taxes on their cash flow and can instead wait for gains in their capital due to sale of property in the future.
• Increase Tax Deduction with Simple Strategies
Rental properties give investors an opportunity to convert all their personal expenses to a legitimate business deduction. Rental real estate is a legitimate business and hence expenses made to check on the property or fees for the caretaker can be written off instead.
As horrible savers, the best way to add value to your capital is by purchasing any real estate even if it is a flat for sale in Lucknow or a luxury property elsewhere. This can even help you commit and form a stable retirement plan for yourself.