The early bird catches the worm. The early investor earns high returns. Like anything in life, investments too when started early from a young age give the best returns. This is because investments for longer periods have the advantage of time. The longer the asset exists the greater it appreciates in value. Real estate like any other asset keeps appreciating over time, at least in the current scenario. The Kochi real estate market is one of the fastest-growing markets in terms of value and size. So, investing in this property market will be highly lucrative.
Let us delve some more into this:
1. The Luxury of Time
Investing from the time you get your first job can prove to be extremely profitable in the long term. The long period of staying invested will earn high returns by making the most of the market growth and compounded returns. As the liabilities during this period are low, young people can take calculated risks. They also have more time for research to find the best investing opportunities and make the most of them. There are many property investment opportunities to choose from the various projects being developed by builders in Kochi.
2. Easy Loans
It is easier to get a loan to invest in flats in Kochi when you are young. You can get a longer tenure and the advantage of lower EMI payouts on home loans. You can also repay the loans faster by making bulk payments whenever possible and reducing the amount of interest you pay. At the same time, you are also going to earn a rental income on your real estate investments as well as enjoy the appreciation in its value.
3. Early Break Even
The power of time will allow you to break even early on your investments. Your income from your profession and the rental income together will help you break even sooner. Once the payment liability on the invested property is completed you can earn a regular monthly income on your property. By recouping your investments in the property, you will earn a sizeable incrementing return on your property.
4. Large Retirement Corpus
Whatever your plans may be for early retirement or world travel, a well-planned investment for a long period can make them true. By choosing the right property to invest in, be it commercial or residential, investing in real estate in the present market promises good returns in the future. By starting in your mid-twenties you can rest assured of significant corpus earnings on your investment by your mid-40s and early 50s. This will give you flexibility to pursue your personal life goals.
Financial planning and investments over long periods are time-tested strategies for maximizing wealth. Starting early when you are young gives the biggest advantage of time which directly translates to wealth accumulation.
The real estate market is now booming in the Tier-2 and Tier-3 cities. The property rates are comparatively low in these cities when compared to the metros and Tier 1 cities. By investing in these properties from an early age one can make the most of the growth in the markets and the long period for which they will stay invested.