- Monthly Income from Rent & Capital Appreciation: Real Estate values and rents tend to rise over time, which can lead to higher cash flow. The Annual Rental Yield for a residential property in Mumbai is generally between 2.5-3% p.a. and for commercial, it is around 5-8% p.a. This is a guaranteed stable & safe source of income that can help you offset your monthly EMIs or your basic monthly expenditure. Therefore reverse calculation of the annual rental your investment can fetch you before buying the property is extremely important!
- Shelter and Security for the Future: Well, if there’s one thing this pandemic has taught us (apart from wearing our masks & maintaining basic hygiene) is that owning your own home is extremely important! It is an asset class that can be passed down to generations.
- Safest Investment Option: Real Estate prices do not tend to fluctuate as compared to other investment options like stocks & bonds (not to mention how volatile crypto-currencies are. I’m sure all the people who bought at the peak of the bull run can relate, including me!)
- Easy to Understand: Investing in Real Estate can be much easier than other investments like stocks, bonds, etc.
- Control Over Your Investment: When you invest in stocks, mutual funds etc you have no rights to influence company decisions that could affect your investment. Here you have full control on your property and decisions such as renovation of the property to fetch higher returns or an increase in the monthly rental on your property is completely in your hands!
- Leverage: Leverage is the use of borrowed capital to increase an investment’s potential return. A 20% down payment on a mortgage can get you 100% of the house you want to buy.
- Tax Benefits: If you avail of a home loan, you can get an Income Tax rebate on the annual interest paid, a part of the principal loan amount, stamp duty & registration charges, and other deductions under section 24, section 80C, 80EE, etc.
Investors who want to get a higher rental yield from their investments can email us at info@racons.in or reach us at +91 8864883838