A Home Is The Best Investment One Can Make. Here’s Why?

Real estate is one of the most valuable assets you can own. Many millennials and Generation Zers are taking the leap to own a home. In a report from March 2017, the National Association of Realtors said that 34 percent of home buyers in the U.S. are 36 years and younger. In 2016, 66% were first-time house buyers. 

According to self-made millionaire and personal finance expert David Bach, the average homeowner, to this day, is 38 times wealthier than a renter. This is especially applicable for luxury villas in Bangalore.

There are many potential upsides to buying a home. This includes the tax benefits of mortgage deductions, the diversification of your wealth base, more income generation, and long-term appreciation of your money. It is also a good bet to hedge yourself against inflation, as home prices move with the inflation rate. Some of the best-selling homes are villas near Electronic City. 

Real estate is a good investment, though it requires maintaining and improving the property. To make sure you make the best investments, do a quick litmus test. Kerri Moriarty, the head of company development at Cinch Financial asks, “If you sold it today, could you get more than you paid for it?”

Another question that you must ask, according to Kerri Moriarty, is that if you do home improvements, does it improve the resale value by a factor of at least 1.5%?

Also, to make a profitable investment, look at what people are paying for similar properties in the same area. Take a look at homes of a similar size, condition, age and style, in the same neighbourhood. Always buy from the best location you can afford, as buying in a good location is better. What you plan on doing with the property should determine the area you choose to buy in. This will also influence the state of the property, and all the other details.

If you’re someone who hates renovating, and is not handy with tools, buy a new place. If your main focus is on renting out to families only, buy a nice family home near a good school district. If you’re planning on renting out to young professionals, an easy commute from a zone of employment is a good bet.  

One way to turn a profit with investing in real estate is rental income – this is the main source of profit for investors. You can rent smaller units in the same home, like renting three rooms to three renters. You can also rent to businesses, where the rents charged are generally higher. It’s also safer, if you’re renting to a well-known company.

Your real estate investment will, finally, be a result of your own efforts. It will get you a monthly source of income, or if you’re planning to live in it, then at least savings in rent. A home is a long-term investment, no matter what you plan on doing with it, and is a definite benefit in the long run. If you’re on the fence, now is the time to make the investment!

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Created on Feb 12th 2018 05:22. Viewed 301 times.

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