Investment Into Real Estate
As in the finance world, we all know about diversification. This diversification has to be done across all asset classes as well as inside the asset class. So as a beginner who is into finance should start saving as much as he can and invest in any asset class he wants. But once he starts saving more, and he knows the risk then it would be better for him to diversify.
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In my case, I have been investing in Mutual Funds, Stocks, Crypto, Metals (Gold and Silver) and I have a flat which my parents stay. So if you see there is actually no investment towards real estate. So I am thinking of getting into real estate. But the problem which I am facing is:
Area Selection - This plays a very big role in properties price rise, if the area is good it can fetch you good returns, if not then you have to wait for a good number of years. The good thing about property is that its value never decreases. This is only true if you are buying land, for apartments the prices can deteriorate over long years. If the area is good, I have to reduce the total land area so that my budget will not go over.
Budget - I do not want to move any of the existing funds to real estate. Either I have to invest my savings or some profit from stocks/crypto or I have to take a loan to some extent. But I do not want to go over the budget which will eventually have a burden on my monthly savings or expense.
Apartment or Land - This is a brainer, I will always go for land because I can keep it as an investment or even construct a building based on my interests. The apartment though is a good investment but its value can deteriorate in future.
I think getting into real estate is a big step but again if you do a lot of checks and if everything is good like area, under your budget and the land then you can go ahead with buying because it's actually a good investment for the future. Also, think of Bitcoin, the bitcoin quantity will not increase in the future that means we will have only a limited supply and that means that its value will increase in the future. Similarly land is limited and thus its value is bound to increase provided you invest in good property.
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It is good to have different source of income.
Is better to diversify your finance so that your income will be coming in both side.
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That's absolutely true and I am just trying to diversify as much as possible.
That's good
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Land would be great to own in stable countries that respect property rights, but even in Canada they have passed covid measures that allow the government to acquire any personal property to "alleviate the effects of an emergency". Crypto is the only truly unconfiscatable asset.
That's true, but in India we still can buy land and keep it until we really want to sell it.