As a family expands, annual income increases, demands, and ambitions soar. Meanwhile, buying a dream house is the first thing to be opted on the priority.
No surprise, it’s certainly a brilliant idea when your saving allows you to buy a brand new apartment, flat, or a residential house to live-in in the desired society.
But the second-best option you can never resist is the investment asset. The property that perhaps isn’t a dream house but has the potential to offer you better returns in the future can benefit you in lots of different ways.
So let’s try reaching a fair decision on whether to choose a dream house or investment asset.
1.Determine the Needed Amount
The first thing to consider on priority is the amount needed for the property. You have two options available, whether to choose your dream house or investment property. No surprise, a dream house comparatively cost high as it may be available in a great society with luxury amenities around. The investment may also insist on taking further amount on debt to meet the asked price for the property. On the other hand, investment assets may or may not ask you for a hefty amount to invest.
2.Figure Out the Future Value of the Property
Dream houses are already available in a great and well-developed society. Its prices might have already received a massive hike. But on the other hand, vacant land or a home that is still underdeveloped might have a higher potential to go up in the value. However, each property purchased now will get you maximum returns; it is the magic of real estate. But investment assets sometimes carry vast potential than a developed and fully furnished dream house.
3.Tax Benefits
Every real estate investment is subjected to taxes. Be it an investment property or dream house purchasing; you are liable to pay taxes. However, when you purchase a dream home and not for resale, you can receive a tax deduction for a significant amount if you buy a read-to-move property. However, investing in a property from a resale perspective doesn’t get you any tax benefits because you make income by reselling the property, which is taxable.
4.Easy Loan Opportunity
It would be inherently easy to take a loan on a well-furnished house and is available in a legal society. Getting a loan on such properties is easy; however, when you take a loan from an investment perspective, the bank will grant you a loan based on your income source or business plan and not on property alone. Getting a loan on an investment property may or may not be that easy for all. Hence, it’s worthwhile not to buy an investment property on debt or loan. Interest on the loan may even impact return on investment.
5.Potential Income Source
The big benefit of investment property is renting it out and creating a passive income source. On the flip side, you can even install a factory on this property. The dream house would be just a living space and will not generate any income for you and your family.
Conclusion
So this is a brief debate over a dream house or investment asset. Both assets are a great choice, but your ultimate decision will depend on your future requirements, income source, and savings.
