One of the main reasons to invest in Real Estate is to bring in monthly income. It not only provides added earnings but along with that appreciates in value. It must be noted that in this case certain factors must be taken into account as there is a change from one locality to another.
Property in a prime location is both costly and gives a high rental yield. There is a risk-reward factor that plays a role here. A person must plan as per one’s investment appetite and holding capacity and invest in potentially high growth areas with reasonable rental income; the price of a home should be relatively low. A person investing in a ready commercial property must consider a high footfall objective even if the size of the commercial property is smaller in comparison; if one is investing in the under-construction property consider the population density of that locality.
Investment can also be thought of in the Non-performing asset scenario which is available in the market by the process of auction. Now a day’s every bank and NBFC has a good bit of inventory that is put on auction, the format is useful if you have funds at your disposal which enables a person to buy at a very good price which can be en-cashed for benefits in various ways!
One can also think of investing in multifamily property from the get-go! The concept of giving rent to a multi-family property is also beneficial, if one can build several family rooms and give it on rent, the income can be quite high. Systematic management once put in place does not need a day-to-day approach!
For example, if you can buy a building near to a hospital area, with several rooms you can very easily turn it into a place for hospital tourism.
It is worthy to take advice from a professional Real Estate Consultant, whenever you are thinking of getting involved in these activities.
Author: AnandamSanyal
