Property is not the most necessary form of Investment
While you are young, you make a lot of plans for saving money for future. Future holds a lot of events which require a lot of money to be comfortable in celebrating or going through those events. You already know that only saving money from your income won’t be sufficient. This is the reason you look for opportunities to invest. The moment you look around for investing options, you get confused. Now either you go to an investment consultant or to any known person who you think is rich and invested properly. You start getting influenced…
When you hear about investments, a lot of options come to the front and you get confused. Some investment options like property investment give you more social acceptance however, some options give you personal satisfaction and money growth.
In India, property is the investment which is mostly boasted about. This way the investor gains recognition among other people that you own an additional property. You take loan, calculate your present income and start paying off the EMI. This loan on property comes with some tax benefits as well. Additionally, if the property is given on rent, it almost becomes a win-win game.
In contrast, investment in mutual funds, equities, jewellery bonds etc. are not boasted about. Even you also intend to hide from people. Actually, it doesn’t give much high social status recognition. A big reason being, nobody can see those investments, however, property can be seen. Property is one of the biggest investments which is tangible.
In our society, it has been taught to us since childhood, ever since from our forefathers, that property is one of the greatest investments. Sure it is. But not the only option.
We are sharing some points which are useful to consider while making investment decision.
- Take note where is the property located. This should be checked yourself.
- Do check in the neighbourhood area and understand how much development is going on.
- Check whether there is oversupply of such properties in the surrounding areas.
- Who is the builder and what is the profile of builder?
- Understand the delivery delays caused previously by the builder.
- Whether you are in the capacity to pay EMI. How much interest you will end up paying.
- Clauses of prepayment and delayed payments should be very well known.
- Whether renting out the property would be easy and whether it seems likely that there will be an appreciation in the value of the property.
- Do not get be-fooled by the agents.
Do some comparison:
- What is the present scenario of mutual fund or equity investments
- Whether you would be able to handle the vagaries of stock markets or real estate market
- Are you sure your money is not getting trapped in a house or equity market.
- As an investment, property is the best choice, but you should be assured for ease of selling of property or your other investments.
The idea behind pointing out these issues is not that you get scared of any investment or supporting/ defaming any particular investment option. Idea is to widen up your vision to let you think more and ask some questions to yourself before making any investment.
Happy Investing!!