Home vs Other Investment Options in Kerala

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Home vs Other Investment Options in Kerala

Home as an Investment Option in Kerala Homeownership is an investment option that is seen as one of the top three priorities of any investor. Investi

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Home as an Investment Option in Kerala

Homeownership is an investment option that is seen as one of the top three priorities of any investor. Investing in a home asset offers substantial benefits to any home buyer. The pride and joy of owning a home, feeling of safety & security, contentment, etc, are some of the many palpable gains of investing in buying your own home. Also, the tangible benefits of homeownership are many and a few of them are mentioned below.

  • Equity buildup – Payment of rents over time, may not provide any equity addition compared to buying a home. In the case of homeownership, equity will build up and mortgage balance will reduce with time.
  • Price appreciation – Price appreciation is the best financial benefit that you can acquire in owning a home. Home equity is built by price appreciation. Home equity can be defined as the value of ownership accrued in a home or property representing the current market value of a house. Home equity is built over time as the property market value appreciates.
  • Tax benefits – There are various tax benefits a home buyer can avail of depending on the project value and other conditions that apply. Only after full payment of a property, tax benefits can be availed.
  • Induced savings – Induced savings tend to occur when you buy your own home as you start saving more.
  • Fixed cost – The equated monthly installment (EMI) and the monthly maintenance is fixed for a home you own, unlike a rented house where every year lease amount goes up. 
  • Various Real estate builders in Kerala can provide you with the best options for a home of your choice.

 

Other Investment Options in Kerala

Relying on savings alone for a financially secure future may not be the brightest of the idea. Various investment plans can help you grow your wealth over time. There are several long-term and short investment plans available in the market today to choose from. Considering your financial goals and risk appetite, you choose the right one.

Below is a curated list of some of the best investment options in India.

  1. Fixed Deposits – Considered as one of the safest and stable short-term investment option, fixed deposits are the best because it provides fund security, guaranteed returns, no depreciation on the principal amount, hassle-free renewal each year along compounding benefits, accumulation of higher returns, etc.
  2. Mutual Funds – Investment in mutual funds is always subjected to market risks. But if you have a thorough understanding of the market and its risks, then mutual funds could be your best investment option to get higher returns. If you want a fixed income, low-risk mutual fund plan, monthly systemic investment plans, or withdrawal plans can be your choice.
  3. Direct Equity – Direct equity concerns the equity shares of a company, that bind you legally to the company ownership. By buying the shares of a company you can be involved in the company matters and also get profits depending on the proportion of your shareholding in the company. You also have the option to give up the shares later either to the company or a third party.
  4. Post Office Saving Scheme – Indian Post is the responsible body for this scheme. The ease of enrolment makes this scheme one of the best investment options in India. The various schemes offered by Indian Post include Post Office Savings Account, Post Office Time Deposit Account (TD), 5-year Recurring Deposit Account (RD), and many others.
  5. Bonds – Bonds are mainly fixed-income investment options that cover the loan made by an investor to a governmental borrower or corporate. The safety of investment and additional returns are assured in the case of bonds and the bond prices are inversely proportional to the offered interest rates.
  6. National Pension Scheme (NPS) – If you have a minimal or low-risk appetite and want to save for your retirement, then NPS is the best option for you. NPS is a government-initiated investment option. Even with Rs 500, you can invest in NPS at an interest rate of 8 – 10 percent.
  7. Unit Linked Insurance Plans (ULIP) – The ULIP is the best investment option for individuals who want market-linked returns along with insurance. ULIP also offers tax benefits.
  8. Liquid Funds – Money is invested in bonds and securities with liquid funds with no lock-in period. Liquid Funds are less subject to market risks.
  9. Public Provident Funds (PPF) – PPF provides risk-free returns and is a government back investment option. Even though the maturity period of PPF is 15 years, money withdrawal can be done after 6 years. Conditions apply for availing of tax benefits under the PPF scheme.
  10. Senior Citizen Savings Scheme (SCSS) – SCSS is meant for individuals above 60 years of age is backed by the Government of India. The maturity of the amount deposited is after 5 years of account opening.

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