Real estate is the best of all investments for all investors, at any age. Read on to see why:
• Home is a basic need further sweetened by tax benefits and lower rate of interest.
• Do not be influenced by any preconceived notions and be a proud owner as soon as possible.
• Buy it with loan, its financial prudence. You don’t need to either put all your money in a less liquid asset, nor do you need to wait for funds to accumulate.
• Your house can be your tangible love for further generations. Plus, you can get reverse mortgage against your self-occupied house and plan your retirement with it – one of the best things that has happened for senior citizens.
• When you buy a house, buy it for medium to long term only, because changing a house is costlier in terms of stamp duty, brokerage,tax liability before 3 years, advertisement for buyer, etc.
•The allocation in real estate investment depends on your risk profile, liquidity, taxable income, and the time horizon for investment. As a rule of thumb, invest up to 20% of your portfolio in real estate besides your house.
