BAJAJ BROKING
Everyone knows that shelter, clothing, and food are the basic necessities of human life. Nonetheless, while all three of these have importance, for a woman, shelter or a home holds special importance. This is because a home delivers a sense of security that stands out from the security you may get from any other asset. A property, be it a full-fledged house or a plot of land tends to give you emotional as well as financial security. Having said this, women typically do not dwell on investment in real estate. It is important to know the reasons for this and find out how women can get into real estate investing without any stigma attached.
There are three primary reasons to invest in real estate, gender aside. They are listed below:
This is one of the main reasons to invest in real estate as wealth is created from the asset due to capital appreciation. As you may know by now, real estate, as an asset, tends to appreciate in value over time. When you have bought your property for a certain sum and its value goes up, say, to twice what you paid for it in a span of 3 years, then your property has appreciated in value. The difference between what you paid and what it is worth now is the capital that has been appreciated in terms of your investment.
Additional Read: How To Boost Credit Score?
If you have a property other than your place of residence, whether commercial or residential, you can rent or lease it so that you generate an additional income flow. You may also sell the additional property after it has risen in value and invest your profit in another asset. With such an asset you can achieve both capital appreciation and regular income flow. Now if you buy a property, you can do so by taking a home loan and paying up the loan with the money you earn from the rental income.
In India, a country that is steeped in patriarchal dominance, both traditionally and economically, women may see themselves faced with challenges when it comes to investing in real estate. Here are some of the challenges:
Additional Read: Unlocking Financial Freedom
There are quite a few avenues open for women to invest in real estate. It is worth exploring these before you get discouraged, as some of them can be lucrative:
You can buy real estate along with your partner or any family member. You get tax benefits with the person purchasing the property eligible for tax deductions. You are permitted to claim tax deductions up to Rs. 2 lac under Section 24 (B) of the Indian Income Tax Act. If you take a loan, on the principal repayment amount, you can claim deductions up to Rs. 1.5 lac under Section 80(C) of the Indian Income Tax Act. You also get to claim deductions for the Stamp Duty paid.
REITs or Real Estate Investment Trusts give you diversification in investment with minimal risk. With such an investment, people can invest any amount in a trust company of real estate through its shares. You get dividends if capital appreciation of the REIT takes place.
Via certain crowdfunding online platforms, it is possible to invest in real estate with a lesser amount of capital. Your money is invested in a range of properties and this reduces your risk and gives you diversification. This is a fund in which many investors allocate their money. The collected money is then invested in bar real estate projects. This is a lot like a mutual fund when it comes to pooling the capital of several investors.
In whatever way you plan to invest in real estate, to watch your asset grow, you can select properties in popular tourist locations. In such locations, the profitability factor is always high and properties appreciate more due to their in-demand locations. If you purchase a property in a tourist area, you can always have a regular income source through rent or converting it into a small hotel.
Additional Read: low-risk investments for single mothers
Once you have identified the property you wish to invest in, you may choose to take a loan to pay for it. You get tax deductions under Sections 80(C) and 24(B) of the Income Tax Act, respectively, on the principal loan amount and the loan repayment interest amount, respectively. This is applicable if you are filing your returns under the old regime. If you are filing your income tax returns under the new regime, you are eligible for tax deductions only on interest payments.
As you have seen, there are many avenues for women to invest in real estate. Taking loans may be quite easy and in some states, the stamp duty applicable is also lower than that applicable for men. Additionally, while choosing a property, it is important to consider its location as this can make your property profitable, whether you are looking to rent it out or desire capital appreciation.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only.
Share this article:
NHPC Q2 Results FY24-25 Preview | Estimate
08 Nov, 2024 | 2 Min. read
Mahindra & Mahindra Raises Fy25 Tractor Growth Forecast Amid Strong Q2 Results
08 Nov, 2024 | 3 Min. read
Tata Power Partners with Noida Airport for ₹550 Cr Renewable Energy Project
08 Nov, 2024 | 3 Min. read
MOIL Achieves Record October Production with 1.47 Lakh Tonnes, Up 32% YoY
08 Nov, 2024 | 2 Min. read
Commodities Market Today | WTI, Brent Crude, Gold, and Silver See Gains in Market Prices
08 Nov, 2024 | 1 Min. read
Share Market Today | Gift Nifty Hints At Flat Start; Markets In Range-Bound Trend
08 Nov, 2024 | 4 Min. read
Fed Cuts Rate by 25 Bps to 4.5-4.75% to Support Cooling Economy
08 Nov, 2024 | 2 Min. read
Gold Rate Today | Gold Rises 1.5% To $2,715.30, Silver Gains 2.5% To $32.11
08 Nov, 2024 | 2 Min. read
RVNL Q2 Results FY24-25 Highlights
08 Nov, 2024 | 2 Min. read
MRF Q2 Results FY24-25 Highlights
08 Nov, 2024 | 2 Min. read
Nerolac Paints Q2 Results FY24-25 Highlights
07 Nov, 2024 | 1 Min. read
Trent Q2 Results FY24-25 Highlights
07 Nov, 2024 | 2 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading