INVESTING? DO IT EARLY IN LIFE!

One of the biggest dilemmas investors face is the percentage of disposable income that should ideally be set aside for property, because unlike conventional asset classes, investing in a property is a long-term investment. 

Your decision of investing should be one which turns out be fruitful. But it is necessary to take this decision early on in life…challenges are tougher but easier to overcome. 

This article sheds light on important reasons to invest early.

If you are planning to invest in property; here are a few tips you must keep in mind.

The early bird gets the worm:

Property, if bought early in life, as an investment, has its own distinct advantages.

The appreciation is maximum over a long term. Thus it generates higher capital gains if sold after a period of say 15 years and will generate the funds for a higher end investment at that point in time.

When loans don't leave you alone:

It is easier to generate funds early in life.  More earning years ahead makes the EMI affordable for many. Plus, with lesser responsibilities a larger portion of the monthly income can be set aside for the EMIs.

It is better to pay off a significant portion of the loan before a household and children's education come up.

Competition leads to confusion:

The options available are directly linked to the budget. As time goes by properties within a given budget will no longer be available with price appreciation.

With development, demands will push up prices. Resale properties will be significantly higher than the under-construction prices.

Those who buy at such locations early, before they acquire the premium tag, hold investments that will yield maximum returns.

Future:

Residential property also yields rental returns. A higher budget allocated to the investment will mean a property in a prospective location where the rentals are higher. This helps in repaying the loan to a certain extent.

If you plan to liquidate the investment in the medium term, a property in a developed neighborhood would be a better option. For long-term investors, emerging localities could work better.

Best investment options in Ahmedabad:

1.    Adani's Shantigram

2.    Godrej Garden City

3.    Balaji Wind Park