Investment property can protect you from both inflation and taxation. Gaur The Islands Luxury Home in Greater Noida, In addition, there is the added benefit of cash flow. Places like Delhi NCR which have been hit so hard by the change in market direction have investors and property hunters taking on investments at unbelievably low prices. Let’s examine the effect cash flow Delhi NCR Investment Property can have on inflation, taxation, and cash flow: Inflation: The price of real things rises in an inflationary environment. Look at the price of gold, silver, copper, sugar, and cocoa to name a few. Real estate is a real thing. It’s tangible and will always have an intrinsic value because people have to live somewhere. Crops have to be grown somewhere. Real property will in general keep pace with inflation.
As the credit crisis is worked out you will see prices stabilize and then resume a gradual or perhaps a drastic rise depending on how much inflation is put into the system by the Fed and Treasury. Gaur The Islands Luxury Home in Greater Noida, That does not mean that property prices will not fall further; however, property should not be purchased with the sole intent of speculating on price. Investment property will produce cash flow when purchased properly. Those who have the foresight to understand that investment property in Delhi NCR, for example, has taken a tremendous hit offering a buying opportunity at incredibly low prices… These price levels provide more opportunity for appreciation for those who choose to buy now and hold the property as a rental. With many properties selling for less than, the opportunity for the average person to purchase their first Delhi NCR investment property, or foreigners such as our neighbors to the north to purchase their very own Delhi NCR vacation property is at all time highs! Gaur The Islands Floor Plan / Gaur Mulberry mansions Floor Plan / Gaur NYC Residences Floor Plan / Gaur City 11th Avenue Noida Extension.
Taxation: Buying and holding an investment property may provide great tax advantages. Gaur The Islands Luxury Home in Greater Noida, Depending on how you hold or own the property you may be able to write off expenses and depreciation against other earned income from your job! Seriously, ask your accountant. When is the last time you earned 12% on your cash in a mutual fund or bond? The advantages go on and on… I have not even scratched the surface of this topic, however, I encourage you to learn more about Delhi NCR investment property today.
Cash flow: This is really the hidden gem of advantages. Say you have your invested in a property in Delhi NCR. Gaur The Islands Luxury Home in Greater Noida, And, that property pays you or cash flows per month to you in rental income. You have now created a 12% annual return on your invested cash! You also have the potential for appreciation! And, you earn this income in a tax advantaged way which means you keep more of what you earn! You also own the property which give you control to sell or hold the property depending on market conditions.
Let me explain…You have worked hard or smart and set aside money for retirement in some form of account. Gaur The Islands Luxury Home in Greater Noida, I would bet you that your retirement account is denominated in India Rupees. Lets say you have been able to set aside in cash. How would the government’s ability to print money impact the purchasing power of your cash? The printing of money causes the purchasing power of your cash to diminish.
For example, what kind of new car can you buy today for less than? Can a new car be bought for less than? Did you know that in would buy a brand new Gaur The Islands with? Gaur The Islands Luxury Home in Greater Noida, Whereas today, a new Gaur The Islands with at How is that possible? Today’s assembly lines are much more efficient and automated with less metal going into today’s vehicles. The answer is simple: Inflation.