Best Retirement Planning Strategy
There is no denying the fact that life is full of surprises, good and bad. But there are a few things in life that are predictable and as a reason, can be controlled. Your retirement is one such thing. As retirement looms in the horizon, your mental and physical health will seem to deteriorate. Good positive habits can help you with your mental and physical health but when it comes to financial difficulties, planning ahead is the way to go.
As you plan for your next vacation, your dream car or house do not let your retirement plans take a back seat. Because as you pack your boxes at work and get ready for your second innings that promises a lot of free time to do what you love, don’t get stuck asking yourself, Now what? Instead, imagine having the financial liberty to say “Where should I start”. Well, retirement planning lets you do exactly that.
The banks and finance companies will readily provide you with an array of options for your retirement plans which are all good, but investing in a second home will let you enjoy benefits that retirement policies alone cannot provide. A property like a house is a lifelong asset that in a long term you would rarely lose money on. Moreover, though it is a large asset, it enjoys liquidity.
Here are four reasons why financial experts suggest that buying a second home should be a part of your retirement plan
Regular Flow Of Rental Returns
Your autumn days will be a lot more stress free with a regular income that can take care of all your needs. Bank deposits will yield regular returns but it is fixed only for a certain period of time. Mutual funds come with a risk of being linked to the unstable market, investing in Gold will only give you a lump sum amount. Whereas rental returns are regular with a negligible risk of the actual asset depreciating. If you can find a right home at right place like an apartment at HiLITE city, Calicut which enjoys good urban connectivity, it can produce more income through rent than any other traditional passive investment.
The interim budget 2019 is a favorable one in terms of owning a second residential property. To save on capital gains received from sale of a residential property, an individual was allowed to invest in one other residential property. Now, this saving can be done by investing in two houses.
In income tax, if you own more than one house then one home used to be considered self – occupied while the other deemed to be let out and taxes had to be paid accordingly. Now, self occupied status is extended to two residential properties. Another tax relief is in regard to notional rent that had to be paid after a period of one year on houses that are not considered self occupied, this has been increased to 2 years.
A Home To Kick Back And Relax
‘Travel more’ is something everyone has on their goal list for every single year. The busy schedule coupled with an increase in expenses, unfortunately, put your travel plans on the back burner. But what if you own a house at a spot you love to visit. Along with completely cutting off the accommodation charges for yourself, you enjoy the flexibility of adding more friends and family to your travel list with no extra cost for stay. Additionally the familiarity of the place gives you a better idea to plan the trip ahead and store items at your second home making you travel lighter.
A Great Plan B
Owning a second home is a great investment as it provides a good cushion in case of emergencies. A medical emergency, any financial setback like loss of job, unexpected home repairs or an important event like your children’s marriage etc can be set off easily by liquidating this asset.
Research shows that people who have retirement plans in place usually live a more happy and stress free life. An investment like a second home with a trusted builders like HiLITE can greatly alleviate your risk factors. HiLITE Builders have world class apartments and villa projects that can be well within your budget. With proper planning early on, the usually dreaded retirement phase can be the best phase of your life.
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