Know Why Akshaya Tritiya Is the Right Day to Invest in Real Estate

Posted on: Apr 26, 2023 | 3 mins | Written by: HDFC ERGO Team

Know Why Akshaya Tritiya Is the Right Day to Invest in Real Estate

Akshaya Tritiya and Real Estate Investment

Considered to be one of the most auspicious days of the Hindu calendar, Akshaya Tritiya is a traditional Indian festival believed to bring luck and prosperity, making it an auspicious time for many investments. People believe that if you buy gold or if you invest in property on this day, the value of the asset will continue to rise all through the years.

Property has long been viewed as a sound investment option; however, with the current economic climate being unpredictable, it can be difficult to decide whether now is the right time to invest in property. Read on as we will explore the pros and cons of investing in property during Akshaya Tritiya and provide helpful tips on how to invest in real estate. Also, remember that once you invest in your dream home, get an ideal home insurance to safeguard your property from natural calamities or man-made disasters.

Advantages of investing in real estate

Investors in real estate are likely to avail of exciting deals during Akshaya Tritiya. Not only does this day offer attractive discounts, but it is hoped that your property will yield you financial positivity. So, let's get into the various advantages of investing in the real estate business. These include:

1. Special deals

Akshaya Tritiya brings not just fortunes but exciting and attractive deals and offers for investors. Owing to the traditional market trends of the day, dealers are quite aware of the frenzy of real estate investors on this auspicious day. Hence, some offer low-interest rates while others offer enticing deals to make the purchase a worthy investment for the investors. This is also one reason why people want to make an investment on this day.

2. Lower rate of interest

The market continues to shift towards high prices, and there is no exception to the rates of real estate businesses. So, in regular months of the year, some investors may not find the best suitable interest rate for their investment goals. However, occasions like Akshay Tritiya are the time when one can accomplish their real estate investment because the market offers low-interest rates to attract more and more customers.

3. Safer avenues to invest

As an investor, one may have an investment portfolio, and real estate can be a great extension of this portfolio. Though the market prices of investments are subject to regular bulls and bears, long-term investment in any kind of property is likely to appreciate over time. Managing the lows of your overall portfolio can become an easy task when you have exciting deals of real estate investment added to it. So, go for one, this Akshaya Tritiya.

4. Avail tax benefits on home loan repayments

For everyone who earns, their taxability is often a big concern, and because it is mandatory, all you can do is find ways to get the best-possible exemptions. Investing in real estate can help you get tax deductions depending on the type of investment made. Under Section 80C of the Income Tax Act, you can save up to INR 1.5 lakhs on the principal repayment of the home loan EMI. Section 24B allows you a deduction of up to INR 2 lakhs on the interest that is paid. You can also get tax benefits on joint home loans as well as on the interest paid on properties that are under construction.

When you invest in a home loan, do not forget to get home insurance to provide your house the safety it deserves. Your home insurance policy can cover your home against natural as well as man-made disasters, theft, and other unforeseen losses.

5. Real estate is ideal for long-term investment.

Many people look for long-term investments that can attract high appreciation over time. A real estate investment can be one such ideal deal that can yield you high returns. You can also invest in property, be it residential or commercial, to have regular rental income and a cash inflow in the future. Renting your property also keeps it maintained. So, in your long-term investment portfolio, real estate investment can be a worthy addition.

6. Risk-Ratio is low

Current market trends show a comparative decrease in property prices. As per the basics of investment, the ideal time to invest is when the prices are low. So, investing at this point brings you a certain amount of probability that the rates in the future are likely to grow, thus, beneficial for you.

How to invest in real estate?

By now, you may have developed an interest in starting your real estate investment around Akshaya Tritiya. If so is the case, you must have an idea about how to invest in real estate. There are several real estate properties in which you can invest. For instance, investing in a rental property or through REIGs (Real Estate Investment Groups), house flipping, REITs (Real Estate Investment Trusts), and online real estate platforms. When you plan to start a real estate investment, the following are the things that you must carefully consider:

1. Do not be in too much hurry.

Real estate investment requires patience. While you may get some quick deals, especially around Akshaya Tritiya, several of the good deals may require you to be quite patient until the deal is confirmed. It may take days or even weeks. Patience can also help in avoiding hasty decisions and, thus, lead you to get your hands on appreciating deals.

2. Researching is a must.

An investment requires a good amount of research. When it comes to real estate investment, make sure you properly research everything about the property and the developers, and only then go ahead with the transaction to avoid any future legal troubles.

3. Read the fine print.

Scam in property deals is not a new thing. People who are new to investment need to be extra careful. When you step ahead with your real estate investment, make sure you read all the papers before signing and completing the transaction. Better still, take the help of a professional to help you make an informed decision.

4. Assess the associated risk.

Risk assessment is an essential task while investing. The current market rate, expected future returns, and the overall risk attached must be carefully evaluated. Only then can you analyse if or not the investment is affordable for you.

5. Negotiation is an art.

When you finalise a real estate deal, do not forget to use the art of negotiation. Investing in Akshaya Tritiya can help you save to a great extent.

Conclusion

Most Indians are sentimental about their values and traditions, even when making an investment. Needless to say that an auspicious festival can certainly arouse the excitement of investing in property. To encourage sales, many builders, developers, as well as banks and financial institutions, offer various incentives during festivals like Akshaya Tritiya. One can also try bargaining with their dealer and get a better offer. So, if you too are planning to invest in property, make sure you understand the importance of property insurance , so that your investment on Akshaya Tritiya not only yields better returns but also stays safe.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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