Every week, Personal Finance expert Gaurav Mashruwala clears all your money-related doubts on The Quint.
In this episode of Dhan ki Baat, we bring you information related to investment in real estate.
Things to Keep in Mind
Real estate properties are bought for two reasons. You either buy properties for personal use, like staying in the house you buy, using it for office work, or running a shop or any kind of business.
The second reason is purely for investment value. Mashruwala says that the only thing that should be kept in mind while buying a property like this is to earn money out of it. It can either earn you money on a regular basis, like rent, or you could make money by selling it later.
Now if what you want is a home for yourself, then there is no need to think much. Look at the house according to the needs of the family and shift. It is more important to see if there are schools, markets, hospitals around the house or not. Will the rate of the property increase and how fast? It is because you are buying this house for yourself.
But if you buy a house or land for investment purposes, there are certain things that you need to keep in mind.
- Can it be rented?
- Will the value increase?
- Will it easily be resold?
Your questions
Our viewer Bharat Prajapati’s sent a question in:
I am a government employee and will be retiring after 5 years. Should I buy a 30-35 lakh house right now and start with the EMIs or buy it after 5 years? I think EMI will be lower and the house cheaper if I buy it right now.
The answer given by Mashruwala is that EMI has nothing to do with age. EMI is linked to the duration of your loan.
Pay EMI every month. Buying a home with a home loan can now be beneficial.
But keep in mind that try to take a loan for short duration and low cost.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)