Author: nlpl_blog

What are the Best Ways to Invest?

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Best Ways to InvestFor a good investment you need to know why, how and when to invest. So now is the right time to invest. By the power of compound returns in investment you can grow your money. Comparably there are 4 best ways to invest your money.

Though many people do not trust the financial markets but historically it’s a fact, investing in Stock Market actually paid off. Invest in small sum by a method called “dollar cost averaging” over a length of time. The method works like when the market is high you are buying fewer shares and when it is low, vice-versa. So, over a time, one can have lower average share price using this method. Some tools we can use to invest:

A typical suggestion is to invest in mutual funds or ETFs. For mutual fund you can use a financial-advisor who on your behalf will sort out the well-performing actively managed funds from the other non-performing funds else you can cling to an existing brokerage-account. There are also few companies who will help you to invest money in ETFs based on your appetite for risk, investing goals and other factors without any charge for managing. You can also find very low charge robo-advisers for this purpose.

The index funds which are not actively managed but have a good long history of solid investment and can be used for retirement purpose. These funds hold every stock in an index like the S&P 500, including big-name companies such as Apple, Microsoft and Google. As these companies offer low turn-over rates so their fees and tax bills tend to be low also. The trick here is to buy all the big companies through the S&P 500 consistently in a very low-cost way and not picking up the right company. Even, say in a period of 10 years, low-cost index funds could outperform hedge funds.

Peer-to-Peer Lending is a method to lend money to individuals in small increments as if you were the bank and getting interest from them using platforms like Lending Club and Prosper.

In Real Estate investment, not necessarily requires dealing physically and going through the hassles of a landlord. There are many ways by which you can invest without dealing with the physical property like real estate notes or Fundrise. These are all hands-off investments where you will be a part of the owner without dealing physically. You can earn good returns but there are risks too, for trusting third-party on your investments.

Investing in yourself is one of the best ways for investment. There are few ways to do so like, read a lot of books on successful personal finance strategies or leadership skills which will make you absolutely smarter in a course of time, investing into material that you can learn from other people, personal coaching and don’t think about the idea of going back to a business-school. Though this kind of investment might sound cliché but it’s a bet that could absolutely pay-off.

Finance & Economy Investment 

What are the Different Ways in Which You can Save Taxes?

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Save your tax in different waysMoney saving is taught to us from the beginning. We try to save everywhere and even in the taxes. But not paying your taxes are not saving, it’s illegal. But there are many ways one can easily save thousands of rupees in taxes. Here is the list of the different way in which you can save taxes.

  • Agriculture Income: if you have agriculture land, you won’t need to pay taxes on the rent or income you received from it. It’s totally tax-free in India. One does not need to pay any taxes on Incomes that obtain from the agriculture.
  • Interest in saving account: any income from the interest on your saving account is tax-free up to 10,000rs. Which mean if someone gets 20,000rs as saving account interest, they have to pay taxes on 10,000rs only.
  • Marriage Gifts: we have a tradition to gift money to a newlywed That money which is received as a gift in marriages is totally tax-free. It could be in any form like a check, cash or a gift, one does not need to pay taxes on that.
  • 80C: Under Section 80C, one can save up to 1, 50,000rs in taxes. There are many ways you can save in this like investing in Public Provident Fund, while paying life insurance premium, paying tuition fees to your children (up to 2 children). You can also save money in fixed deposit in banks and post office under section 80C.
  • Insurance, loan, and donation: Under Section 80E, interest paid on the educational loan is tax-free. You can also save taxes in medical insurance under section 80D. Any donation which was given under section 80G is tax-free as well.
  • Travel, hotel, and food expenses: employees can save taxes on traveling or staying in the hotel or food by billing it to the company directly. If the person doesn’t pay those bills out of his own pocket and it was an allowance by the company, they don’t have to pay taxes on those too.
  • House rent allowance: under HRA, you don’t need to pay taxes if you are paying rent over 1, 00,000 per year. There are many formalities also including in it like submitting your house owners pan card and rent receipt that you received every month.
  • Profit from a share: only if you hold those share or mutual fund for one year, you don’t have to pay taxes on the profit you received after selling Also, the dividends you received from the shares are tax-free.

There are many legal and easy way you can save taxes. Paying taxes are the duty of every single civilian but you can also perform your civic duty and save money as well.

Finance & Economy Knowledge Based Articles 

How to Make Investments in Your 30s

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How to Make Investments in Your 30sIf you’re in your 30’s, many life transitions happen like from moving up in your career to buying a home. So, getting started in your 30’s and making smart moves with your money will help achieving your future financial success and will provide you with plenty of time to save for retirement and the future.

The priority is to set your goals and diversified your investments i.e., don’t invest all your expenses in one kind of investment only. Invest in various type of investment plans based on your needs and for meeting your goals.

Below some of the advises for investing correctly when you are in your 30’s:

  1. Taking care of the immediate needs by yourself: Ensure that you have at least 6 months of emergency funds already saved and be financially organized i.e., keeping accurate records of your finances and know where your money is. So, spend time on tracking and reviewing your money. This will let you know if you are moving in right direction or not. Keep on re-balancing your investment as per your current situation.
  2. Ensuring of taking care of your family: It’s to assure not leaving your family screwed when you die. So, invest in Life Insurances which will replace your income and your family won’t become homeless. Investing in Disability Insurances, this can replace your income, so your family can leave, if you gone disabled for unfortunate misfortune. Invest in Child Plans for securing the future of your children’s education and other purposes. Invest in good Health Insurance Policies for all family members which will save a lot of your hard-earned money during hospitalization and other medical expenses.
  3. Saving for the future: Once you have the essential tools for your family protection, now you can go for your future savings. Start saving systematically. Embrace Stocks, invest in various pension plans available which are tax free, etc. If you have any excess money invest in standard brokerage accounts. Investing on a set schedule will make you a better long-term investor. Focus on the percentage of income saved and not the amount of money. By saving based on percentage of income will help you saving more as you earn more. But don’t take risks that you cannot afford while investing.
  4. Planning for big event expenses: Once the above items are taken care-off now you can look for balancing life events. Pay off all your debts that are continuing like student loan, credit card debts, etc. Then use the left-over money after saving for retirement and investments to plan for things like vacations or weddings as these expenses are flexible.

Wealth can be built by anyone if they willing to stick to some best practices for money management:

  1. a) Focus on the habit of spending and saving intentionally.
  2. b) Building of wealth needs time and doesn’t happens in days or months. So, avoid get rich quick schemes.
  3. c) Seeking guidance from experts or people who are successful in growing wealth.
Investment 

Things You Need to Know About Property Investment

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Things You Need to Know About Property InvestmentProperty or real-estate investment is also like any other business has associated risks. But there are many people who have earned a fortune from it. But it doesn’t guarantee that everyone can earn a fortune by investing in property. Whatever type of property you are purchasing, all these requires a large amount of cash which makes it a very risky business provision. There are many things you need to know before investing in real-estate.

When you are investing in property, you will always look for the profit outcome at the end. So, take it as a purely business investment and think logically about it and not let your emotions affect your decision. So, lower the price you get better the chance that you may get higher profit from it.

Always buy your property in well-researched areas based on your targeted clients. Make sure that the location has real economic growth drivers to sustain your investment in the future based on your targeted clients. Apart from research, using an analytical approach logically based on the financial factors will help you purchase the best property. A good investment is based on economics and not on emotions. The other factors like:

  1. Property Cycle: Aim to purchase at the lowest point of an area so to capitalize on growth. Not buying in a boom cycle.
  2. Capital Growth: To buy where growth in the market going to occur. Utilizing a buy and hold strategy and strong economic growth drivers will ensure the capital growth which will enable you to gain equity in your property and this keep you purchasing more properties.
  3. Solid Yield: Aim to buy property that has more than 5% yield. A solid yield will keep you in the market and you can maintain your investment. The equation is: ((Rent/Week * 52) / Purchase price) * 100.
  4. Knowing Market Value: To buy property on or below the market value of the region. This ensures that you are not paying too much, or it will stagnate your ability to purchase more. OFF THE PLAN purchases are not recommended for this reason as the true market values are not mentioned.

There are different ways that you can invest:

  1. Positive cash flow property
  2. Negative gearing for capital growth
  3. Do renovations to increase the value
  4. Subdivide a property
  5. Do larger developments
  6. Do a buy and hold
  7. Buy units

So, work out on what investment strategy suits you and invest likewise.

A calculation of expenses and profit must be worked out beforehand. Calculate the money you have, how much you can borrow, calculate the purchase cost based on your suitable investment strategy and the operations cost. Lastly, estimate the price you are going to list for the property and minus the expenses to get a rough estimate of the profit. This calculation is necessary to keep you in the safe zone.

Pay all your other debts if you have any, choose appropriate investment loan options and choose your partner carefully, if required.

Investment 

How to Finalize the Location of Your New Home

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How to Finalize the Location of Your New HomeChoosing the home of your dreams can be a nightmare decision for a person. It takes so much effort of putting in the research work, visiting sites, dealing with the agents. To go this daunting process, follow the steps below:

  • Start by looking at the accessibility and the proximity factor around the site you find attractive.

You would like to have a house from which transportation is easy, cheap and should be somewhat close to the airport or railway stations. Check whether the school is closed for your kids, and shopping centres and grocery shops.

  • Next on the list is fixing a budget. Factors like conveyancing, state taxes, duties and fees should be taken into account. Choose the right type of loan to suit your needs and obtain a pre-approval by contacting a mortgage broker.
  • Now it’s time to find the block of land in your desired area. It’s always thankful to get away with a cheap one however, you should consider whether you are ready to compromise if you find the land to be irregular, fall on the lot, positions, orientation, proximity to major roads, ease of access, whether the lot is titled or not. Check how the overall streetscape gets impacted by the Estate Design Guidelines.
  • With the land now meeting your fancies, it’s time to decide the home design and builder choice. Select the floor plan, façade to it on the lot, appoint a colour design consultant to get the interior designing, fittings and textures done. Be cautious not to fall for the extravagant stuff that might affect your budget.
  • With this its time for the building agency to take over. Design your home with all the latest upgrades as per your budget, including the final site costs in the Building Contract. It is almost mandatory to have a written contract in case of any future discrepancies.
  • Once the piece of land has been titled, it is high time for the builder to conduct a soil test and report any site costs as per requirement. After receiving the external approval, such as formalizing unconditional finance approval, obtain the building permits. Contact the building supervisor to initiate the building process.
  • As your Dream home starts to take shape, a percentage of the overall contract value would be invoiced as per required slabs, frame, lockup etc. After completion, builders will schedule Practical Completion Inspection.
  • Now as the building process and final inspection is over with all the finishing touches, the arrangement for the final settlement payment has to be done. Then finally you have the keys to your new home. It’s time to settle!!!

 

Investment Knowledge Based Articles 

How Could an Investment in the Home be Highly Beneficial?

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Home Investment BenefitInvestment in the house or more specifically buying a house has been considered a good investment. But after buying a house are you planning to move it? Owing to a house and renting it out is more beneficial and better choice.

Are you thinking of buying a house? Do want to be a homeowner or you are planning to rent it out? You first need to sure about you want a home or you want an investment? This article is all about for those who want to invest on the property but doesn’t know if the home should be where you live, a rental property, or if it can be both simultaneously.

What is a Good Investment?

A good investment is something that will return you more than you paid for it.  An asset is something that helps you get money in your pocket. A liability is anything that takes out all your money from your pocket. So, is your home a good investment? It is very important to understand whether your personal residence is an asset or a liability? Is the situation like every month you are paying the mortgage, insurance, property taxes? Despite, after the house is paid off you are still spending money maintaining the house and paying your taxes and insurance. Then this house is still taking money out of your pocket and this is a kind of liability. Your house is productive and might look like good, but the fair play is locked up in the home. So, if you are in financial need, you either need to re-mortgage or sell the house and then you are back to having mortgage debt or looking for a residence to live.

Buying a house is always accepted a good investment because:

  1. Sometimes properties prices increase adequately for people to make wealth.
  2. House is something you can see palpable and people like palpable investments.
  3. People assume that they are getting enough wealth by living in the house, and also anything they sell is an added bonus.
  4. Parties’ like-real estate agent, attorney, bank etc. gets the benefit and therefore, they want you to buy and sell your property as often as possible.

There are factors that decide whether buying a house is a good investment or not, such as:

  1. The cost of the house. It shouldn’t go out of your budget at all. Buying a home that puts you in debt isn’t an option
  2. The rent that you have paid for the house (for those cases like, if you have rented it instead of buying it).
  3. The selling price of the house with the present market rate.
  4. The negotiating cost involved: as because buying and selling aren’t easy.

Hope this article has made buying a house seems less harrowing and more manageable. Owning a house can be a beneficial source of income and a significant source of comfort, stability and happiness.  Plan it well and do let us know if we have missed out on any crucial point.

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Investment Real Estate 

6 Simple Ways for Beginners to Make a Smart Real Estate Investment

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Six Simple Ways for Beginners to Make a Smart Real Estate InvestmentMaking a risk free investment is a myth. You have to accept that every investment has its own pros and cons. Thereby; you can select which one would be the best-suited investment for you. Many investors target on real estate, which probably can be the riskiest investment if you have not done research thoroughly. Here are some ways to make a smart real estate investment:

How long are you willing to wait?

Your investment strategy depends upon a number of factors. If you are willing to wait for a longer period of time so as to get higher returns, it is advisable to invest on land rather than a fully constructed space. The earlier you finalize your location the better. Also, when you invest on a plot which is under construction or planning stage (which is even better!), you might have a good value for money deal. The safer method for doing so is to collaborate with the real estate developers or real estate investment groups who are planning to set a township in your location.

Location Scouting

When it comes to real estate, location is probably the most important aspect to keep in mind. Although it seems very obvious, finding a perfect location which matches your budget as well as expected returns can be a tricky thing. Generally, people look for a locality where there are schools, universities and other facilities require on a day to day life. However, if you are ready to invest more time and less money, you can look for locations where a city s being planned and would take some time to construct.

Looking for loopholes

Probably buying low can be one of the lucrative options. There are many properties where the rates fluctuate a lot. Waiting for the right time when the price of a particular property falls down and then buying it can be a profitable long term investment. It is advisable to hire a professional when making such an investment as you never know what would be the evaluation of the property you are buying after say ten years.

Old school landlord

Renting a property as a resident or commercial location is one of the oldest ways of generating revenues from real estate. However, it has its own blemishes. If you are willing to put efforts in managing your property and unexpected emergencies, this might be a profitable way. The general evaluation of a rent depends upon factors like taxes, mortgage, and maintenance of the property and of course location. Although it completely depends on the owner of the residential property.

Borrow and sell

If you want to invest in a property but do not have enough money, you can also choose to take a mortgage. Thereafter, you can sell this property with the help of real estate whole sellers who would find you an appropriate buyer at your selling price and take their share as per your deal. The process can be complex but equally lucrative.

Old wine in a new bottle

Many investors invest their money in an old, often worn out property and then renovate it as per market requirements. This allows them to sell that particular property at market rates which ultimately results to be a lucrative investment.

Real estate investment can be very profitable if you are ready to invest your money, time as well as efforts. One wrong decision can prove to fatal to your investment. It is therefore very important to hire real estate professionals, lawyers and the people who know this industry very well.

Knowledge Based Articles Real Estate 

Buying a New Row House? Follow the Checklist

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Buying a New Row HouseHome is a place of respite and retreat. Home is as much an emotion as it is the four walls wherein you live. And because of this very reason, the process of picking a new place to live is an exciting yet nerve wrecking experience. Whether you’re young and just starting off in life, being independent, living with your friends or you are a family man and looking for a cosy nest for your children to grow, a new home is a big decision. If you’re not checking for the smallest of flaws and making sure you’re getting the perfect place at the perfect price, you’re doing it wrong.

Confused? Here are some pro tips that you might need while looking for a new row house:

1)    Location:

Location is the first thing you should look for. If your home is just a short distance away from all the facilities and important places in the city like your workplace, the children’s school, a park, the convenience stores, the health centres and the gyms, you have very little to worry about in the future. Good residential neighbourhoods are hard to come by, but when an opportunity knocks, you open the door. Good neighborhoods meant for residencies are safe and have an overall hospitable environment. NL Builders ensure that the homes built are safe and accessible.

2)    Space:

The next most important thing in a row house hunt is the space. This doesn’t mean that you buy an extravagantly large house that is too big for the number of people living in it. The trick is to strike the right balance. Imagine yourself living in that place for the following ten years. If even a single part of it makes you feel claustrophobic, that place might not be for you. Love to spend time in the garage, tending to your car? Look for a home with a garage that serves the purpose. Love to barbecue on weekends and have a beer with your best buds? Look for a backyard with a brick barbecue.  Make sure that the original architecture of the house is so good that you have to make minimal changes in the construction, which brings us to the next tip.

3)    Modification:

Row houses are a unique housing concept that was invented in the recent past but has found its place in the modern Indian society as a home of variable levels of luxury. The homes built by well known builders such as NL Builders are great at modifications. The biggest plus point of buying a row house is that there’s a lot of room for modification. Want a nice patio out front? Go ahead! Want a mini- golf set in the backyard? You got it! Want to merge the two bedrooms on the top floor? Of course, you can! The row house is a personalised living experience combined with the community living experience.

4)    Cost:

Cost is one of the most important things you need to factor into the purchase of a new house. Followed by the location and the size of the house, you should zero in on your ideal price. Do not set a fixed limit and be reasonable. If your ideal home demands a little more money out of your pocket than you originally thought, wait it out. Wait till you have enough and then go for it. Home loans are the next best thing. You should be well informed about all the home loan types and policies that various banks offer. This is the most crucial part in the process of buying a house. You need to keep a track of the market and how likely you are to get a good deal on your loan. Choose which type of loan you are most comfortable with.

5)    What puts you off?

Deciding what your deal breakers are is good. Only you can know what you would like and what you want. Check for little things, like a good view from your gallery; a north facing bedroom so that you can enjoy a sunrise; a home in an environment-friendly area, where the air is fresh, the sky is clear and there is cleanliness. The grass doesn’t always have to be greener on the other side! Check for pests and other infestations. Check for rabid dogs, diseases in the neighbourhood. Do not go for a smaller bathroom just because you’re getting a beautiful wind vane. Focus on the essentials.

6)    Invest in a good security system:

The safety of your loved ones and your own self is indispensable. It is good to know that you can rest assured that that safety is not compromised. A good and independent security system can be bought for a row house. Due to technological advancement, the system occupies minimal space and is obscured from sight, but is more efficient than a vigilant night guard. CCTV cameras can be installed in areas that are prone to an intrusion.

7)    Seek help:

Do not go off on your own on this venture. Help from experienced people and good advice from a trustworthy financial advisor is a must. Learn from the experiences of your friends and family. Get to know about all the mistakes and the good decisions made by them. Get in touch with a good interior designer. Take their advice on whether the house has the potential to be augmented in terms of its beauty and comfort. Deals that may seem impossible to turn down, in the beginning, may be surpassed by far better ones. Be patient and avoid any impulsive decisions.

In conclusion, it can be summarized that buying a new home is a very elaborate process. Resourcefulness, foresight and patience are the key virtues that you need to hold while going on a real estate hunt. Row houses can prove to be a far more beautiful and comfortable home compared to most apartments and condominiums. Seek help, learn from others’ experiences and invest some time into the decision-making process before buying a new home.

Happy hunting!

NL Builders Real Estate 

6 Basic Things to Consider while Buying a Property for the First Time

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6 Basic Things to Consider while Buying a Property for the First TimeBuying your first property can be one of the most important and complex financial decisions of your life. There is a lot of paper work, location scouting, meeting the right people and several such factors to look into. This can put you in the state of predicament and you might end up taking a wrong step. So here are some of the tips that might help you come up with a better solution:

The Basics

Whether you consider buying a property for living or renting out, it is very necessary to look for the basic amenities available in that locality. Look for the nearest grocery store, hospital, school (even if you don’t have kids at the moment!), and other places which can be useful in daily life.

Proximity versus Connectivity

While buying a property, it is always advisable to look for a place which might be a little farther than your workplace but is a lot cheaper has a required connectivity. And even if you opt to live near your workplace, you can always rent a good place there and put your house for rent.

Keep it low

It is essential to be realistic when it comes to finances. Not only do you need to look into your budget, but also consider the fact that once you buy a property, you need to have enough savings to work on its little repairing work, putting the furniture, pay taxes and other things. So find a property which actually is a bit cheaper than the budget you initially had in your mind and plan your budget considering the aforementioned expenses.

Do a Survey in the Neighborhood

Your realtor is there to make a sales pitch. He/she would and could never tell about all the experiences of living in that particular locality. It is always a good option to ask the people in the neighborhood, whether there are any hassles of living in that area. They have nothing to lose so it is quite unlikely that they will misinform you. Choosing a good builder like NL builders is vital.

Inspect the Place like Sherlock

While visiting the property, look into every nook and corner, the roof, the kitchen the toilet seat, just everything you can lay your eyes on. This is especially necessary if you loved this place at first sight. If you find any glitches, you can negotiate the price on your terms or at least ask the seller to get it repaired.

Think a Decade Ahead

When purchasing a residential property, one should always consider the future of that locality. The place might not be too developed so as to say at the moment, but it should have some great future plans. So look for a place which has a chance of being developed in the next decade in such a way that the value of your place increments accordingly. For instance, the locality near which there is a probability of a multi lane road being constructed in the future might be a really promising one.

When you finally come to a point where you are ready to buy a property, do your research properly. Look for every option that can reduce your costs. Getting your documents ready for loans beforehand is one of the most important steps. Always choose the trusted builders such as NPL builders.

NL Builders Real Estate 

4 Reasons Why Renting Your Property Could Be A Good Idea

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NL BuildersSell a property or rent it? There has always been a tiff between the two. While selling your house, you can earn a lot by it. On the other hand, to rent a house is a responsible task to do. You become the landlord and also have to look after the new member of the house. Its a little bit of tough yet manageable. It is still seen that many people prefer to sell their house so that they can relocate to other place but what’s the point in that when you can easily rent it out with earning money from it!!

In case you don’t require a sum urgently it best to rent your property instead of selling it off.

Let me tell you the 4 reasons why leasing your property could be a good idea. Stop thinking about selling your property instead, rent it out. Have a look,

1 Rent properties are more in demand

Rent properties are now more in demand especially amongst the students and working class. Often even the families prefer to stay in a rented property until they buy one for themselves.

2 – More tax benefits

If you are the landlord, you are entitled to several tax benefits. While renting a house, there are some tax benefits given to the owner. It will help you to know the law & for which you should definitely be in touch with your tax advisor.

3 – You don’t have to worry if something broke in the house

Now as you have rented the house to somebody, it isn’t your responsibility anymore to look after it. A person living in the house is the one responsible for any type of mess he creates in the house. But, do make sure that you include this in the agreement beforehand.

4- You can invest the amount in other plans

After renting your house, many options are open for you to invest it. You can either start your own business or invest more in other plans like buying new home, retirement plans, new schemes etc. you get your own benefits of renting your property.

A renter can enjoy as much savings as he can. Selling your house is not a good option. Rent your property as it will provide you many benefits along with you being debt free. Understand your responsibilities, you can easily save your money by renting out your property and enjoy the rest of your life.

 

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Real Estate