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Rental Property Investment in India

As we all know Rich and wealthy invest in Real Estate directly. They invest in Residential , commercial and Vacational assets for steady and assured appreciation of their property in common.
However , the thing which makes the real estate investment so lucrative is its capability of generating stable income in the form of daily , weekly , monthly and annual rentals. The rate at which rental income grows mostly beats the inflation in long term. This is specialy true in case of holiday and Vacational property as the daily rentals of the property grows due to high demand this also pushes the overall price of the property up.

The rental yeails of the property grows with time, in other time its directly proportional to the inflation rate. Capital Appreciation happens due to high demand and growth. India being a developing nation and have highest young population , demand of real estate will keep rising. This double effect of assured high rental yeild and capital gain or value appreciation makes the real estate asset as the world's largest and highest return yeilding assets, unlike any other asset class.
Rental Property Investment is the best asset class to own and it's the best inlation hedge. That is the reason why world's most welthiest people like it most and put maximum money into these type of investments.

So How to Invest in Real Estate?

Real Estate investment is one of the most costliest investment. Property prices in India can range from few lakhs to many crores. Hence before investing it's necessary to check your affordability and you should know how much you should spend. 
 
So first thumb rule , you should not buy a property with a home loan for a sole purpose of Investment. You should buy a property which you can easily purchase with your bank savings. Start with small properties such as studio , condos , or just a small price of land or a fraction of a property. Fractional investment is best for millenials as you can buy luxurious premium rent yeilding properties with just a fraction of its cost which you can afford with your savings only.

Secondly Location is the major factor while investing in real estate so make sure property investment must be done in a location which is known to the investor. Investing in an unknown city shall be avoided. For high capital growth one should opt for tourist destinations where the demand and rentals are high. 

Accessibility is also plays a very important role while choosing property. Approach road is important. is there a broad or paved road connected to the property , public transport connectivity. Airport , Railway station , cabs , bus etc are easily accessible.

Specifications of the property like it's group housing or a row house , or apartment building before looking for a property you should narrow down the type of property you wanted to invest in.
Then the size of the property like no. of bedrooms , carpet area or a plot area.

Maintenance is a very critical and important factor while selecting the property as in longer run a filthy or I'll manages prooerty will loose it rental yeaild and capital appreciation as well so before investing check the developer background , management team experience or earlier projects sold and manage by the company for your reference

Other ways to invest in Real Estate

Fractional Ownership or Co-Ownership , One of the main drawback of property investment is that it is very capital intensive . Moreover buying and selling of a physical property is also not easy. Hence there are some really good business models in India theough which you can buy a percentage or a fraction of a property as per your affordability and usage and through the technology selling and buying these assets are very easy and transparent.

Conclusion , These investment idea may sound basic, but the are authentic and effective for a beginner. These strategies can help in making a right decision.

Location of the Property
Size of the property
Affordability
Acceptable Quality and maintainence

I hope these ideas will give some food for thought for your next property investment.
Happy Investing 






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