Property investment is one of the most popular investments for many people. It offers many benefits, including providing an income stream, capital growth and being able to build wealth over time. However, property investment can be risky and is not suitable for everyone.
The answer to this question really depends on your individual situation and needs. If you are looking for capital growth then it may be a good time to invest in property. There are currently many properties that are being sold at prices below their purchase price due to the downturn in the market caused by Brexit and Trump’s presidency. This means that you could buy a property at an affordable price and sell it at a higher price once the market picks up again.
But, direct answer to question is Yes, Here are the reasons –
In this article, we’ll take a look at some of the main reasons why property investment or buying plots in Lucknow can be a great way to grow your wealth.
Table of Contents
Cash Flow
One of the biggest benefits of investing in real estate is that it provides cash flow from day one. You will receive an income from rent which can be used for your monthly expenses or even for paying down debt such as student loans or credit cards. This means you can use your cash flow to start building wealth without waiting years for an investment to pay off.
Tax Breaks and Deductions
In addition to cash flow, there are also tax breaks available when it comes to investing in real estate. These include deductions like depreciation on the structure and fixtures, interest paid on mortgages and other expenses paid throughout the year. You’ll want to consult with a tax professional before filing your taxes after purchasing a new property so they can help ensure you get all available deductions.*
Inflation Hedge
Property prices tend not to go down during periods of high inflation because people still need somewhere to live. Inflation hedges are usually things like gold or stocks that are expensive and difficult to store or transport (like oil), whereas property can always be stored in its existing location and transported around with ease if necessary (although this isn’t always true for high rise apartments).
Low Correlation:
Real estate doesn’t tend to move in lockstep with stock prices. In fact, over the last few decades there have been times when stocks fell while real estate prices increased or vice versa. This makes real estate useful as an asset class to diversify your portfolio with because it will help reduce risk by providing some protection during weak periods in other markets (like stocks).
Also Read – Best Place To Buy Plot in Lucknow
High Return on Investment (ROI) – Property investments are one of the best ways to make your money grow. A property investor can expect returns from 5% – 15% per annum on average, depending on the type of property and location. This means that even if you only buy one rental property and use it to live in yourself, you could still be earning as much as more than if you had put your money into a term deposit account at the bank.
