Investing is a word that young 25 to 30 something employees believe they do not need in their vocabulary for a long while. They rather put their money in cars, jewellery or foreign tours. Most young workers believe that the time for saving is later in life, but the truth is the earlier you start investing, the better are your chances of having a solid investment portfolio that brings great returns. With current market trends promoting higher pay packets even for entry-level employees, it makes complete sense for young workers to start investing in an asset that has bigger ROI and smaller risks, vis a vis, real estate.
Many youngsters believe owning a home is a big financial burden and they would not be up to it, but the truth is becoming homeowners can have great benefits. These include:
Savings on Tax
Home loans are a great way of saving on income tax. Rebates on income tax that come with home loan on a property can help kick-start savings, especially, if started in your 20s.
Creation of Asset
Having an asset in your name is always a great security. An asset that gives you great returns and also increases in value over the years is a must have. Starting out early will help you gain your home earlier and thus, you can enjoy the returns for longer.
Lower risks, higher ROI
Unlike other investment options like trading, commodities and currency, buying real estate has least risks and also doesn’t fluctuate as much. The real estate prices work along the lines of economy health. If the country is prospering, real estate prices will remain steady and you can always sell your asset for a profit.
Another source of Income
It is always good to buy your first home as an investment and rent it out. This gives you an additional income that can become part of the EMI and also give you options to reinvest in your property.
In conclusion, as the proverb goes “The early bird gets the worm.”, getting a head start in the investment game will gain you many benefits. Just take a look at all the people in the older generation who have a large investment portfolio, most often than not they started young.