Why are millennials interested in real estate investing?
The average age of homebuyers investing in the booming real estate sector of the nation is constantly decreasing. This only proves that an increasing number of millennials are thinking long-term and turning to the flourishing property sector of India for high returns and life-long security. It is always a good idea to start early when it comes to investing in real estate. Read on to know why.
Easy loan availability
Home loans are the easiest way to fund your real estate dreams. At a young age, you have a bigger chance of loan approval due to the lesser number of active loans in your name and the higher payback period. Time is the biggest gift you have when you are young, so it is best to take it to your advantage and opt for lower monthly instalments over a longer period of time. You can also enjoy lower interest rates and have the option of paying a lump sum when you get a bonus or a hike.
Better research skills
Millennials are more tech-savvy giving them the added benefit of better research on social media and leading search engines. There are a plethora of property sites that post genuine reviews of developments with high-quality images and accurate dimensions. Additionally, online portals can be accessed from any corner of the globe and are available round the clock, giving young investors the leverage to research as per their convenience.
Property developers have also begun marketing their projects in a better way with virtual walkthrough videos and Building Information Modelling (BIM) for a better understanding of the dimensions and characteristics of the property.
Lower investment risk
Investing young is always a good mantra and real estate is the best option, keeping the high returns and fast appreciation in mind. There are no unexpected market events that can result in loss of capital. Unlike other leading forms of investment, like mutual funds and gold, buying a home offers a lower investment risk with lesser fluctuations in the market. Furthermore, you also have the added advantage of life-long security since you will always have a roof above your head. The low-risk factor is especially true if you invest in newly launched properties located in burgeoning regions since they guarantee high returns at discounted rates.
There are a plethora of tax benefits you can avail by investing at a younger age. By opting for a home loan, you can receive a rebate in your yearly income tax returns. The interest you pay against your monthly EMI can be deducted from your taxes. Section 80C of the Income Tax Act also lets you claim the principal amount of your home loan as a tax deduction. You can claim a maximum amount of Rs. 1.5 lakhs, contributing further to your savings while you become the proud owner of an immovable asset. To add to that, Section 80EE has a provision exclusive to first-time home buyers, allowing them to claim tax benefits if the total value of the loan taken does not exceed ₹35 lakhs.
Early retirement plan
By investing early, you have more time at your disposal to enjoy the returns. You can either generate secondary income in the form of rent or live in the security of your own home. It also gives you better control over your finances and helps strike other things off your bucket list like studying abroad and travelling around the world. For example, if you invest at the age of 50, you need to wait for a good ten years to reap the rewards. However, if you invest at 25, you can enjoy the long-term benefits of real estate investment much earlier in life and retire earlier.
With so many benefits to offer, it only makes sense to buy a home much sooner in life to enjoy maximum returns. Make an ideal investment by opting for a renowned builder known for their top-notch construction and luxurious projects. The Brigade Group is one of the leading property developers in the nation with exquisite properties developed in the top localities of Bangalore, Mysore and other top cities. Hurry and make the wise move of investing young in real estate today!