Wealth Guide: Real Estate – How Investing in the Real Estate Sector Helps You Plan Early Retirement – Expert Decodes

Wealth Guide: The real estate sector is one of the few investment opportunities that has existed since time immemorial. Owning a large piece of land from ancient to modern times has been associated with power and supremacy. In an age when there are countless investment opportunities such as mutual funds, gold, ETFs, debt funds and what not, real estate remains a reliable and proven investment opportunity. Anurag Goel, Director, Goel Ganga Developments, shares his knowledge of how real estate investments can put you on a sound financial footing and help you plan for early retirement.

Start early

“When you plan to retire early, you have to start planning it early in your life. As soon as you start earning, you need to start investing. If you have just started working, look for ways to invest in real estate nearby and invest as soon as you have a decent amount. At this point, the obligations are almost insignificant, family obligations are not available and you are in your heyday. When investing in real estate at the beginning of your life, decide the type of property you want to invest in. If you take into account the long-term horizon and the potential for appreciation, investing in a plot would be wiser. As the land is not depreciated in value, there will be no maintenance fees. This becomes a lower burden and a high potential for evaluation. If you are planning to retire at the age of 40, the plot you bought at a young age will be an asset at the time of retirement, ā€¯suggests Anurag Goel.

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Reduce your debts

“When you decide to retire early, there are some difficult financial decisions you will have to make early in life. Instead of taking a lot of credit cards and spending a lot, taking out a lot of personal loans, it would be better to save money and invest in real estate. Investing in real estate does not always mean investing in a plot of land or an apartment. With the introduction of innovative real estate instruments such as real estate investment trusts (REITs) and partial investment options, you can start with a small amount and increase it as a systematic investment plan (SIP). Investing in such instruments will not burden you and will create an asset by the time you retire, “Goel said.

Focus on creating rental properties

“The more properties you rent, the more convenient it would be for you to retire earlier. As your income increases, you need to invest in high rental properties. When deciding on rental property, a good location is paramount. A huge investment in a remote and less likely development site will yield lower rental income than a well-connected one. Because you have decided to retire earlier, a series of rental properties will help you receive a regular income stream after you retire. “Study well and beware of emotional investments,” he suggested.

Reinvest in maintenance

“If you decide to choose a built apartment or duplex, they will be depreciated over time. You need to strive to keep your property running. Regular maintenance and repairs will extend the life of the rental property and pay you longer. Real estate investments will last longer if you take care of the maintenance part. Choosing the right and long-term tenant can help you maintain both the inflow of income and the condition of the property, “he explained.

Improvise your investment

“Despite a well-researched investment, sometimes a property may not be as lucrative or lucrative as it used to be. In such cases, be prepared to sell the property, sometimes at a discount, and reinvest elsewhere. Be prepared to improvise your investment strategy will go a long way in planning your early retirement income. In conclusion, early retirement requires early start and effective planning as well as implementation. “If done well, you can enjoy your early retirement with income from property,” he concluded.

(Disclaimer: The opinions / suggestions / advice expressed here in this article are solely from investment experts. Zee Business invites its readers to consult with their investment advisers before making any financial decision.)

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