Why Pay Rent, When You Can Invest
Decoding and coding the investment world isn’t some scientific skill. But it’s tied in with having significant regard for human behaviour. In my career spanning two decades, I have found, the rare genius all great investors share is a great understanding of the instincts, emotions, and tendencies of investment behaviour. Obviously, things are constantly not the same as one period to the following; however, what does not change from time to time is human behaviour and the arrangement of market extremes.
Nowhere does this wisdom appear more plausible than Mumbai, India’s business capital. Last month, I was in the city joined by my son who has quite recently entered Graduation College in Mumbai. After finishing college, he plans to learn dance and acting, so I thought it would be best to invest in property here in Andheri. A quick search will tell you that Andheri, also addressed by many as the heart of Mumbai, is easily accessible by local trains as well as the metro. Many companies ranging from e-commerce, logistics, food tech, home services, and edtech have been gravitating towards Andheri. So, investing in property here made perfect sense.
We were looking out for a One-BHK configuration somewhere around here for my son to stay. Even if I were to give this accommodation out on rent after he completes his education, I could get anything from Rs25,000-30,000 per month as Andheri is a hub for many corporates, hotels and IT startups. Renting property is great and tax-efficient where urban land is in short supply and home seekers in millions.
For an experienced and novice investor like me, straightforward and transparent investments are almost always the best of all options. Plus, I like Mumbai as only a few cities in the world leave the tourists with such vivid impressions, whether it’s the glitz and excitement of ‘Bollywood’, the tremendous cluster of Victorian structures of the British Raj, the ocean side meet on the Juhu Beach, or energetic boulevards of Mumbai.
So, we set met a local property agent, and he suggested that we consider Omkar Realtors. We went to the given address and met the firm’s executives who took us to the property. My son usually abstains from expressing excitement, but as he saw the sample house, within minutes he said, “Dad, right-price and right-size”. Even I felt satisfied seeing– the location, impeccable social & civic infrastructure, and plethora of high-end amenities. While looking for a property, I normally prefer a perfect mix of a great social and civic infrastructure along with proximity to key locations.
After thorough research, I found out Omkar Realtors stand out for their brand name and track record and is one among the top real estate developer in Mumbai to invest in. The straightforwardness with which the executives worked all through the process was unquestionably engaging and transparent.
Message for Youngsters
As long as you have enough money and a steady enough income to cover the additional costs, purchasing allows you accrue wealth over the long term. The deep-rooted explanation behind purchasing rather than renting is equity. While each rent installment vanishes into investor’s pocket, finance payments accrue over time and give you a stake in the home. There’s one more reason buying is a smart investment: Property has a tendency to appreciate in value over time.
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Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018