By 2021, India will embark on its journey of becoming the youngest country in the world. As per the 2013-14 economic survey, more than 64% of India’s workforce consists of individuals between the ages of 20 and 35. Due to the huge financial power that they possess, millennials are considered to be the most influential demographics across the world. In the past few years, it is observed that millennials are constantly changing the marketing landscape of various industries including real estate. Starting their career at a young age, millennials represent a stratum of the society who are tech-savvy, well-read and informed about the current economic policies of the country. Hence, they are fully aware of the need to make an early long-term investment in order to enhance their financial security. If you are a millennial looking for some stable investments, here are a few reasons to tell you why investing in real estate would be one of the life-changing decisions of your life:
Better accessibility to home loans
Home loans are one of the most common ways to make your dream home come true. Youngsters in late 20s and early 30s have a higher scope for home loan eligibility as they have lesser financial obligations and more years of active professional life. One of the biggest advantages for millennials is that they stand a high chance to avail home loans with longer repayment tenure and lower EMI rates. This is primarily because they have greater scope in terms of income growth as compared to other demographics of the society. Hence, it is ideal to make your real estate dreams a reality at a young age as you can complete the loan repayment by the end of your professional life.
Tax benefits and huge savings
Investing in real estate at an early age gives you the opportunity to enjoy a wide range of tax benefits. Availing a home loan to fund your dream home can help you get tax rebates in your yearly income tax returns. The interest that you pay against your EMI can be easily deducted from your total tax amount. As per the Section 80C of the Income Tax Act, an individual can avail tax benefits for the principal amount of the home loan. This scheme enables home buyers to claim up to Rs.1.5 lakhs as tax deductions. Millennial home buyers can enjoy the twin benefits of enjoying tax benefits along with ensuring abundance of savings for the future.
Faster appreciation rates
When you invest in a property at a young age, you will have a longer time to witness the appreciation of its value. Longer the time of investment, greater will be the value of your property. Generally, property appreciation rates depend on a variety of factors such as location, inflation, market demand and overall economic conditions of the country. A residential property in one of the burgeoning localities of the city usually witnesses an annual appreciation of 10-20% over a long period of time.
Another vital benefit of investing in real estate at an early age is that it will help you earn extra finances through rental income. This secondary income can be effectively utilised to pay the monthly installments of your home loan. Renting your property is also a great way to build up your savings for making your other dreams come true, such as travelling the world or pursuing higher studies.
Real estate investment at a young age is ideal as it offers more financial security than other forms of investment like mutual funds or gold. Taking into account the uncertainties of life, it is always advisable to have an emergency fund to withstand instances of loss of job or ill health. Investing early in real estate can help in sheltering yourselves from these unpredictable situations, apart from making your retirement more secure and happier.
The chances of reaping huge financial benefits at an early age is high when you make a wise real estate investment. , However, millennials must take into consideration various factors such as location, reputation of the builder, social infrastructure and important amenities. Visit Lancor, if you are planning to invest in some newly launched premium residential projects in the prime locations of Chennai.