Rental properties are owned by individuals apart from their primary residence that is purchased with the intention of renting out the property to tenants looking for a home and henceforth earning some returns and equity on the side. An investment in Real estate by buying a property and renting it out has been the ultimate investment choice of many successful investors over the years. If you take note of the investments of wealthy and successful citizens of the society, it can be seen that a big portion of their successful investments were rental properties.
An investment in Real estate by buying a property and renting it out has been the ultimate investment choice of many successful investors over the years. If you take note of the investments of wealthy and successful citizens of the society, it can be seen that a big portion of their successful investments were rental properties.
Rental properties are owned by individuals apart from their primary residence that is purchased with the intention of renting out the property to tenants looking for a home and henceforth earning some returns and equity on the side.
Owning a property in addition to one’s primary residence is a way to increase your capital wealth. The key advantage is the fact that your tenant pays your mortgage and as time passes by, your equity grows. Not only this, you end up owning a physical capital asset that makes income continuously. As per the latest Indian Real estate trends, about 47% of rental properties are owned by individual investors.
Financers and tenants contribute to the cost of the property and help build potential return. The investor need not have 100 per cent of property cost to buy it.
Unlike other investments, the flexibility to invest more in Rental Property. The extent of investment is decided by you.
In the rental property sector, the owner is responsible for the property’s prospects. The freedom to take a prompt decision based on factors decided by you enables the owner to ensure the wellbeing of the property and good returns from the property. There is no need to depend on someone else’s discretion to ensure the optimal management of your property.
The real estate market might up and down in general but rental properties have been known to be in demand consistently. Unlike a trending stock or the latest tech trend, rental properties will always be in demand and will give returns for long. Also with the rise in student loans and overall debt, the probability of people moving into rental homes is definitely higher in the future.
This is one of the few investments having a valid proof of concept of the safety and stability of the investment. Millions of successful investors have been known to build wealth by being landlords and leasing out residential property. Its worked for a lot of people before then why not now?
In times of recession and market collapse, rental properties are the most stable and predictable investments. The key is to not get greedy in desperate times and trust in the long term prospects of rental properties.
In this class of assets, rental properties have a vast variety of options to choose from. Ranging from Single-family homes to apartments to high-end homes to office spaces, the number of options is endless.
The ability to buy a property of value higher than it’s cost is the coolest advantage residential properties have. The fact that you can find properties below the market value is one of the best options of buying in real estate and a good means to build capital wealth.
In times when active income has become difficult to earn and time -consuming rental properties have become the best source of passive income with the ability to even outsource the responsibilities of being a landlord.
For the investment aficionados when an investor makes a profit based on their access to private information it is called insider trading. It might be illegal with other assets, but not with rental properties. Knowing the current and future prospects of a property and then making decisions that result in profits is absolutely legal in this sector.
Experts in the Real Estate sector have advised investors time and again that despite having a property, investing in real estate repeatedly is a means of building wealth, continued liquidity and rise in equity.
Some might question is this too good to be true?
We are here to burst that bubble.
Rental property investments have been one of the top choices of numerous successful and wealthy investors over the years. Learn from the wise and experienced they say, first time and amateur investors must look into the wealth growth graphs of prolific investors from a generalistic perspective. Understanding the vision behind their path and following or adapting certain aspects can help investors build capital wealth.
Before investing in Rental properties, certain metrics are to be looked into. The return on investment is essential to ascertain the security and growth of your investment.
So, expecting and ensuring a reasonable return on investment is obvious. Calculating the true ROI of a rental property involves factoring in all costs arising from the possession of the property apart from the purchase cost. Whatever the final figure tells you helps you realise the future prospects of your property investment.
The factors affecting the initial cost of investment are purchase price, closing costs, final finishing charges. And the factors affecting Net profit are revenue and expenses. The difference between revenue and expenses gives the net profit.
Rental income: Rent charged every month
Mortgage paid down: Share of property ownership
Change in property value: Additional equity apart from the mortgage amount based on current residential real estate prices and rental prices
Homeowner’s Association Dues: Dues paid towards community amenities.
Property insurance: Cost of Property Insurance
Property Taxes: Amounts paid towards state and local taxes. These taxes keep changing every year. Unless a reassessment of the property is done, it is likely that the prices are hiked annually.
Vacancy: When a rental property is vacant, certain expenses are incurred additionally with the standard annual vacancy rate at 5 to 8%.
Maintenance: Every property will incur certain expenses towards the maintenance of the property on a monthly and annual basis and these expenses can be pretty unpredictable. These expenses are essential to ensure the upkeep of the property and at the same uphold the competitive advantage of the property in the market.
Time: If one were to follow the Time is Money ideal, the time that an owner spends towards the property is also accountable towards expenses. Whether it is fixing a specific issue or the overall management of the property, the time spent on the property must be worthy in returns.
Another important fact is that the dynamics of the financial prospects of the property keep changing every year and hence there’s a need to recalculate return on investment every year.
Advantages like capital growth, ongoing cash flow and significant tax benefits make rental property investments the best in class investments. However, if rental properties are bought the wrong way then it is possible that they drain out your finances towards the end.
The keystone to financial success in rental property investments is buying them the right way.
The need to look into all aspects with the utmost care and attention is essential.
The complexity of the variables pertaining to the health and performance of rental property investments make it absolutely necessary to make the right decision.
Considering all variables and ensuring optimisation to maximise return on investment is key to the prospects of your investment.
Another important factor is that these investments must be analysed in a long term perspective rather than being a typical cash cow.
Hence we at Homes247.in suggest all our homebuyers to get in touch and ensure the safety and accuracy of your investment.
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Well, we are aware that real estate has never exactly been one of those binge-worthy blog categories. It has neither been the kind of topic you could not get enough of, nor is it half as juicy as celebrity gossip.
However, in India, real estate blogs are starting to get clicks and likes, and it has become one of the trending topics. People worldwide are beginning to realize how real estate as an industry affects the economy and how important it is to understand housing trends to enhance their lifestyle.!
The relevance of informative Indian blogs on real estate and finance are at an all-time high now. The youngsters are bidding big on investment options, and brackets such as realty have proved to be highly dependable compared to others.
The Millennials are flooding in to invest in apartments, plots, and villas, and the earliest members of the Gen-Zs' entering the workforce and looking forward to having their own homes. This has only fuelled the growth of digital real estate blogs to keep up with the tech-savvy generations.
Also, the real estate sector has been proving time and again, how reliable an investment choice it is. So, learning about the sector is the smart way to climb up the ranks, and where else can you learn so much except from real estate Blogs! Real estate is the second-largest contributor to the country's GDP; hence there is no doubt that it affects every one of us, whether we see a future in the Real Estate Industry or not. After all, we all live in our homes, and housing is a significant part of the industry.
We know exactly what you need to know and what you like. We know you want to feel engaged and entertained, and at the same time, hot housing news should be fed to you! We have turned the tables, grab a spoon, and start digging!
And Voilà! We present to you the most Interesting and Informative blogs!
As our name implies, we are not limited to realty alone, granted we do Specialize in it. We are all about Homes, and we are in love with Tech and Innovation! Naturally, our blogs cover a myriad of topics related to real estate and housing from Luxury, Lifestyle, Home Decor, Vastu, Real Estate News, Reviews, Tech & much more!
We make every one of our real estate blogs as interesting as it can get and attach with absolutely unique and accurate images, to provide you a better understanding. Not only do we cover a wide range of topics, but we also cover them at the right time. We update you on our socials such as Facebook, Instagram, Linkedin, Pinterest, and Twitter on every trending topic, so you are never miss anything and worry about being left behind!
However, we never go out of hand with our Indian real estate blogs that our beloved Readers have come to love over the years.
Everything in India is a state of constant flux; maybe that's why we Indians became one of the most adaptable and cosmopolitan people in the world!
If the nation's elements are shifting its focus, how can real estate be any different? Indian Real Estate Sector is perhaps one of the most dynamic ones in the entire world. Since the Real Estate in India is yet to be organized entirely, the variations in one segment affect another in ways difficult to comprehend.
The complexity and nuances can be understood only by reading about what is going on in the sector. Like we mentioned above, it affects every one of us. Hence it is essential to keep up to date.
With its ever-changing shifts and tides, it's virtually impossible to keep track of the sector's latest trends and sink our anchor deep. That's where we come in! We are just one google search away!
We also try to solve every home-related query through our Indian real estate blogs. And that's not all. We provide you insights on technologies that make the modern taste and rate of development possible, detailed analysis on real estate projects, insights on loans and taxes, advice on the home buying process, and articles on health and fitness. We provide you information about the trending topics in the Indian real estate industry.
We also host video podcasts named Expert's Voices, where we discuss with the leading players in the industry about market scenarios, offers, anything and everything related to real estate.
In addition, we host Real Estate News so you can stay updated on the sporadic events that happen around the country concerning Indian Real Estate. We also make short and easy to understand real estate video blogs.
We have got so many topics to read about that even if you have years of experience or are just curious and googling to get some ideas about Indian real estate blogs, you will find the best ones here.
At Homes247.in, we strive to provide you only the best real estate blogs. Our blogs are always entertaining; even the dullest subject we touch upon, we try to make it engaging. We make sure the best of the best is are the only standard we keep ourselves at when it comes to our service or our Indian real estate blogs.
Our team is made of a dynamic group of keen hands-on expert researchers who work tirelessly along with passionate and knowledgeable content writers to bring to your fingertips the world of real estate.
On every one of our real estate blogs, we research vigorously, write creatively, carefully compile, and thoughtfully curate the best real estate blogs, especially for you, from India's best content writers and contributors.