Real estate is considered as the most advantageous investment with minimal risk of monetary loss because in real estate transactions you get a property asset with the replacement of cash. One can use this property in his/her own way to get an advantage of it. But if you think investing in real estate is a cakewalk? You are definitely on the wrong track, Joseph Grinkorn suggests the following ways to make earnings from investing in the market.
What Returns One Gets from Residential Real Estate?
- Self-Occupation: You can use it for safe roof shelter to live in.
- Investment/Renting: Real estate property asset is an adequate property asset to earn incomes and price appreciation.
- Combination of case1 and case2: If you will make an investment in residential property you can switch either first or second option and if you would like can use your property to accomplish both the purposes. For example, you can use one portion of your property asset for your own living and can spare other portion for commercial use.
Why Investing in Home is Advantageous Option?
Rental Income Stream
A property asset has the capability to provide regular rental stream over the years at the very initial phase it might not be a significant option to rent a property to boost your income. From the rental property, one gets a constant and regular flow of income. When you buy a property you should make the future assessment for property value and must have an idea how much you are going to earn.
People also buy property in the expectation to move up its price in the future. For example, if you buy property worth of 25 lakhs and in the future, it could be of 40 lakhs based on current market price. It’s just a matter of time because it takes time to change property price in the market. So if one is considering price appreciation to make earnings from real estate Joseph says “the key is to be patient”.
Tax Advantages and Benefits
Why make an investment in a home? People who take home loan gets tax benefits with deduction at the principal amount and there is an additional deduction at interest paid which simply means your EMI payments towards your housing loan get deducted and with a change in various tax laws, one gets additional monetary advantages. Take help from your tax advisor on tax saving on residential properties.
Why Invest In a Home?
- Passing of an asset to the next generation.
- Option to add additional units and room for adequate expansions.
- One can select the option to sell or rent out partially.
- Option to start shop/retail outlet.
This list of benefits goes on increase depending on the property asset for example; if you want to expand, consider expansion cost and investment. The next important step is to check rental rates. If rents move up property assets becomes lucrative for making investments.
If you want to explore more on residential property assets feel free to contact Joseph Grinkorn having years of working experience in the field.