Jalandhar: In recent years, along with property prices, rent also increasing rapidly,specially in metro cities. Property can not be meant only for living or property, but also an important source of investment and regular income. However, people do not pay much attention to our rental income, which means ‘rental yield’. If you want to invest in real estate for the purpose of capital creation then it is important to keep in mind the income that can be generated from the rent. After some time, it is better to look at the benefits of the rent from the sale of the property as well as the additional benefits of the rental income.
Meaning of Rental Yield: To understand the meaning of Rental Yield, consider this example – if you get a rent of 1 lakh 80 thousand rupees per year from a property of Rs 50 lakh, your rational yield is 3.6 percent. Capital gains or losses from property are not taken into account when estimating it.
Rental Yield with Residential Property: If you have a desire to generate capital from a source of income in the long run, then residential property is not usually the first option. Rantal Yield is not given much priority due to two reasons in the case of residential property in many places.
Rental Yield from Business Property: If not resident, you can expect to get good Rational Yield from commercial property. However, there is a difference in ideas in this regard and risk may be slightly higher, but good rational yield can be achieved by investing in pre-leased business properties. Pre-paid properties are those properties where some places are already rented. In this way you are already aware of the rent you can earn. You know how much you will earn from the rent there and you can plan the investment plan by thinking beforehand. rental yields generally up to 8 percent are considered to be good.
Opportunities Abroad too: Of course, there may not be so much scope of income from rent in India, many Indian investors are taking interest in many foreign cities such as London, where property prices have declined. Good rental yield remains in markets like Singapore and London, while there is less interest rate on home loans. These places have become attractive options for real estate investors. Indian investors are not allowed to invest in property by taking loans abroad. However, they can do so with the help of a legitimate company created in another country. These days, the trend of buying property abroad is increasingly visible by Singapore-based companies.