Investment In Real Estate Is Better Than Investing In Fixed Deposits

Since the pandemic has come into the picture, many people have struggled to make investment decisions. Many have even fallen prey to the market downfall. Now that things are getting better, there is a ray of hope for investors. But the question remains the same – In which sector should they invest? People looking for short-term investments can go for recurring deposits, saving accounts, liquid funds, etc. As these sectors yield you average returns with less risk. On the other side, people opting for long-term can go for fixed deposits, PPF, Equity mutual funds, Debt mutual funds, etc. These give you good returns with an average amount of risk. Still, if you wish to choose a safer bet, we suggest you to opt for real estate over fixed deposits or any other investment sector. Here’s why:

Higher Returns

When you open a fixed deposit, the average interest any bank offers are between 5 to 6 percent. On the other hand, when you buy spacious flats in Thane, the returns you may get are around 15 to 20 percent. Although it can be a pricey investment at the moment, in the long run, real estate will yield you higher profits. This profit will be far higher than that of a fixed deposit, all thanks to the high-risk-high-return situation caused due to the unforeseen shift in the Indian economy.

Additional Advantages

When it comes to tax-cutting, the tax on interests from fixed deposit mostly depends on the salary bracket of an individual. Under section 80 of the Income Tax Act., one can avail a deduction of up to Rs. 1.5 Lakhs for investments in fixed deposits. Wherein in real estate, an individual can deduct a sum of Rs. 1.5 Lakhs from the home loan amount. In addition to this, new home buyers get an additional Rs. 50,000 deductions under section 80EE. When a couple buys a home, they can individually assert a tax deduction of 1.5 Lakhs.

Plethora Of Options

When it comes to buying a property, there are a lot of options waiting for you. For instance, if you wish to buy flats in Thane West, many renowned developers in Thane like Dynamix Group and others offer air conditioned homes with fitted kitchen and lifestyle amenities at an affordable price. Whereas when you open a Fixed Deposit, you don’t have options to pick and choose as the interest rate is moreover the same for all banks. Even though you can choose the period in FD, the change in interest rates is incomparable to that of property returns or rental incomes.

Growth Due To Transparency

Since the time RERA has come into existence, the number of frauds in the real estate sector has reduced. It has moved the real estate industry in a way that people now trust the developers and are willing to invest without giving it a second thought. The higher security and lower risk factor of real estate is the one that can act as your deciding element to choose between the real estate and fixed deposit.

Now that you have points to compare, you know that spacious flats in Thane will be more beneficial for you than regular fixed deposits.

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