Navigating the Real Estate Market to Find Investment Opportunities Post-Budget
Experts say that real estate can diversify an investor's portfolio beyond conventional assets like stocks and bonds.
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Seasoned investors and aspiring homeowners are pleased to see Union Budget 2024 placing significant focus on improving India’s infrastructure and housing. This suggests that there could be more opportunities for everyone to benefit from, especially for the younger folks, who see real estate investment as a smart move while planning their finances for the future.
As the government keeps focusing more on these areas, investing in real estate looks even more appealing. This creates a sense of excitement and optimism for the future. Let's take a closer look at why putting your money into real estate could be a smart move in 2024.
A Steady Income from Rentals
With time, we’ve learned that investing in real estate, particularly in residential properties, serves as a dependable source of income through rental earnings. The ownership of property allows individuals to lease out spaces to tenants, ensuring a steady stream of income flows in every month. Unlike stocks and mutual funds, real estate is a tangible asset that can yield consistent returns over time. Whether it's owning a single apartment or a rental property, the revenue generated from rentals can significantly contribute to your finances.
Tax Advantages for Real Estate Investors
The Union Budget's focus on improving homes and infrastructure also comes with special tax benefits. Here's a glimpse:
Interest Deduction: Homebuyers can leverage deductions on home loan interest payments under Section 24(b), thereby, reducing the overall tax burden and making homeownership more financially viable.
Capital Gains Tax Exemption: Individuals selling residential properties and reinvesting the proceeds in another property within specified timeframes can avail of capital gains tax exemptions under Section 54 and Section 54F.
Affordable Housing Deductions: The budget's focus on affordable housing opens avenues for additional deductions under Section 80EEA, particularly beneficial for first-time homebuyers.
Diversification of Portfolio
Real estate can diversify an investor's portfolio beyond conventional assets like stocks and bonds. Property values tend to appreciate over the long term, serving as a hedge against inflation. Moreover, real estate operates independently of stock market fluctuations, which will help in reducing the risk of your overall investments. By allocating a portion of your investments to real estate, you're making a strong financial plan with more stability.
Creating a Long-term Plan
As you build a real estate portfolio, you're creating assets to financially support your future. In this journey, safeguarding your financial interests becomes crucial. That's where HDFC Life Smart Protect Plan stands out as a prudent choice to help you take wise risks. Here are some of its key features:
Boost your fund value with 4 kinds of loyalty additions (return of 2x to 3x mortality charge, return of 2x premium allocation charge, return of fund management charge and return of 2x of investment guarantee charge).
Get a minimum assured benefit in the form of capital guarantee despite market fluctuations.
Flexibility to choose the premium payment option- regular or limited (5 to 12 years).
Reduce your Death Benefit Cover after a chosen period under Decreasing Cover and Decreasing Cover with Capital Guarantee plan options.
Whether the aim is to support children's education, prepare for retirement or leave a legacy, real estate investments are pivotal. And when these opportunities come your way, remember- wise choices made now will help build a successful future.
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