Retired personality and healthy and wealthy living formulas after retirement is a dream of every being.Mumbai based financial planner Harsh Vardhan Dawar of Wealth Cafe Financial Advisors agrees, noting that "our parents' generation tended to depend on their children.But people don't have that mindset anymore"
But trend is expected to grow as now current working generation preferring to build their own retirement corpus and don't leave things on their children.It is estimated that about 3% to 4% of the population depend on government funded programs, welfare schemes and corporate pensions and around 17% to 18% of the population depend on their investment, fixed deposits and small savings schemes.
Here you'll discover why to Invest in property:
But trend is expected to grow as now current working generation preferring to build their own retirement corpus and don't leave things on their children.It is estimated that about 3% to 4% of the population depend on government funded programs, welfare schemes and corporate pensions and around 17% to 18% of the population depend on their investment, fixed deposits and small savings schemes.
Here you'll discover why to Invest in property:
1. Capital appreciation
Your
home may go up in value, boosting your net worth and earning you a profit when
you sell it.
2. Building equity
Rather
than paying rent to a landlord which becomes an expense, by buying a place your
mortgage payments are helping you build equity (once you subtract the interest
payments) in your own property.
3. Rental yield
If you
are buying a property for investment you can rent out the property and get a
rental yield. Even if you are staying in it, you can rent out a room to get
some income.
4. Hedge against inflation
During
times of inflation, the purchasing power of money gets eroded, whereas hard
assets (e.g. gold, property) tend to keep their value and rise in tandem.
5. Ability to leverage
Leverage
magnifies your returns if the price goes up, but it also magnifies your losses
if it goes down. Leverage also allows you to buy a more expensive place than
you would have been able to without it.
6. Ability to make capital improvements to enhance value
When
you buy a place you can renovate it (e.g. by painting it, or changing the
fittings) to raise the value of your property. Contrast this to buying stocks
where you are a passive investor (unless you own a significant percentage of
the company).
7. Joy of home ownership
It’s
nice to have a roof over your head that belongs to you. There’s no need to
worry about a landlord raising your rent or chasing you out.
