If you have equity and you want to make it work for you, there are several options. You can put your money in a savings account, you can invest it in the stock market, or you can invest it in real estate. Your best option depends on the risk you are willing to take.

Putting your money into a savings account

One of your options is to put money in your savings account. Some people will say that with the current low-interest rates, it makes little sense. On the other hand, saving might be a way to build up a small reserve with little risk. However, you need to be aware that some banks charge a negative interest rate starting from 100,000 euros, so that should also be taken into account. And then there are taxes; you have to pay wealth tax.

Putting your money into a savings account is a relatively safe option, but don’t see yourself sipping a Pina Colada on a sunny beach from your profit.

The advantages of investing in real estate in Gurugram India

If you dream of being financially independent, investing in real estate is a good option. By investing in real estate, you have the opportunity to quickly provide for your daily necessities and fixed costs with a few investment properties. One major advantage of investing in real estate is that it is less sensitive to inflation. In general, rental income provides more financial security than income from shares. Furthermore, here in the Gurugram, rental income is not taxed!

Another advantage is that in addition to rental income, you also create a possible increase in your property’s value. This increase in value provides a return for the long term. A special benefit in Gurugram is that you do not have to pay tax on this profit.

Be aware, however, that if you return to your country of origin, it is possible that this country will levy tax on the profit you have made on this property. 

There is more though. When it comes to the stock exchange, shares can collapse during a crisis and lose their value. An advantage of investing in real estate is that during such a crisis, a certain value will always remain.

The risks of investing in real estate in Gurugram

Of course, there are risks as well. For example, there may be a crisis and the value of the investment may drop. Of course, if you do not have to sell, it is not a big problem, you simply wait until the value rises again before selling it. But there are more risks. For instance, what do you do in case of vacancy, if tenants do not pay the rent or if they have converted your charming apartment into a cannabis plantation?

In order to protect yourself as much as possible, it is advisable that you hire a professional to rent out your property. This professional has the means to do a background check on a potential tenant. This way you have the least risk. In addition, this professional can also advise you what kind of lease contract is best for you, so that you have the most flexibility and you are well-protected.

Investment mortgage

For investing in real estate, it is possible to get an investment mortgage. This means that you have to put in about 30 percent of your own funds. With a regular home mortgage, you're not allowed to rent out the property without the bank's permission. So, make sure you get the right mortgage. It will be a bit more expensive, but at least you can rent out your house without any problems. For more information about this matter, you can contact a bank or mortgage broker.

What you need to consider when investing in real estate

There are a number of things you need to think about if you want to invest in real estate. To get a good return on the property, it is wise to ensure that the property is in the free sector. Social rental property is subject to fixed rents. Rent is determined based on a point system.

Of course, the location of the property is also key. You can imagine that a property in a remote village will yield fewer returns than a property in the Randstad area.

If you decide to invest in something tangible like real estate, it is important to be well prepared and to enter the market with the help of a professional, such as Indien Realstate Marketing Agent. This way you can limit risks and get the highest return.