Buying a house can be treated as postretirement benefit
Most of the people in India prefer to buy a house as a residential property. One who had invested in purchasing a residential property in India, can enjoy different benefits after retirement.
A property in India can be used as collateral and the owner can take a loan to supplement his post-retirement income. But this choice is especially optimal for individuals who are asset-rich and cash-poor.
On the other hand an individual can rent out a portion of the house to generate revenue. In India rental income typically increases with inflation and hence offers protection against purchasing power during high inflationary condition.
From a post-retirement investment perspective, a small bungalow outside the city limit may be worthwhile. And the owner can convert the bungalow into apartments at a later date.
And even if the owner live in one apartment and sell the others, he will receive enough cash to support his post-retirement lifestyle.
To read more real estate news:
Green buildings will be next step in Indian real estate business
Affordability of Homes in India has increased: HDFC
Source: My Iris
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