Report on Investments by HNWIs

09 Jun 2021

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    This new trend has led to an increase in the country's interest rate scenarios, and this shift in HNI's investment portfolio will undoubtedly lead to an increase in investment in real estate asset classes. The report also pointed out that the global HNI in 2019 is worth US$74 trillion. Approximately 26% of Indian HNIs invest their assets in Indian real estate. Although most of HNI's needs are obvious, they still adopt different investment strategies. In general, the observed HNIs have a better understanding of financial markets and the products they provide, they are more likely to take risks, their economic environment seems to be typical and challenging, and there are also assets that are easier to manage capital and have high returns.

    Long-term financial protection by investing in real estate, you can guarantee long-term stable cash income. In addition, the main goal of investors is to be financially self-sufficient and have long-term financial security, which can be achieved by investing in real estate. Real estate investment is one of the most attractive and profitable investments. For example, India’s self-employment tax does not apply to rental income. In addition, when investing in real estate, you can apply for some eligible tax deductions, including property taxes, expenses, travel expenses, repairs and maintenance expenses, etc. You can also deduct depreciation expenses from your total income each year. By reducing the tax on net income, it provides you with more opportunities to make money. Usually less sensitive to volatility. Even when compared, the correlation between real estate and stock market movements is relatively low, which makes it a more reliable choice for investors. This is because alternative assets such as stock markets and cryptocurrency trading tend to shrink rapidly during economic downturns. At the same time, one of the most important characteristics of real estate investment is its slowness. Unstable, it tends to be much slower than other investments. If you look closely, real estate is actually a good choice. One of the most unique and attractive features of real estate is that it can be improved. It is a material made of wood, bricks, concrete, and glass; therefore, with a little "effort" and "hurry", you can add value to any property. Whether you fix the structure yourself or hire an expert, the capital remains the same. Your property is more valuable than before. Real estate coincides with retirement when buying real estate, the cash flow is low, and the decline in mortgage funds is also low. However, over time, the mortgage loan is amortized or cancelled, and the cash flow increases. This can be thought of as a mandatory austerity plan that brings larger amounts over time. This is an ideal retirement investment plan because it increases cash flow on the street. In this case, profits are subject to capital gains tax. Depending on the tax type of investors, they usually charge a tax rate of 15% to 30%, which is relatively lower than the personal tax rate. Compared with other asset classes, real estate can generate higher net assets. In addition, the high valuation of your investment usually results in a large amount of HNI, enabling them to hold funds for a longer period of time to invest. Real estate investment opportunities are attractive, including residential properties or commercial that can also generate substantial returns. In most cases, this will lead to more stable returns and help exponentially increase the value of your investment over time.

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