Did You Know? - What is the Residential house Rental Yields in India? - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
Trending
Powered by Blogger.
Thursday, March 17, 2016

Did You Know? - What is the Residential house Rental Yields in India?

Did You Know? - What is the Residential house Rental Yields in India?

Residential rental yields  in India are among the lowest in the world.

They stand at a measly about 2% or so.


That is the amount of rent you pay per year relative to the market value of that property. So, even if you had the money to buy a home/ flat, should you?

Looked at another way, renting a home is the equivalent of taking a loan at an interest rate of 2% per annum.

For just Rs. 20,000 every year, you get to use an asset worth Rs. 10,00,000. You could use it to invest.

Even a simple bank fixed deposit (FD) earns close to 9% today. Subtract the 2% rent you pay and that leaves you with a 7% surplus accruing to you every single year.
And if you are able to make investments that safely earn an even higher rate of return, your edge would be even larger than that 7%.

Over the years, this edge can make a mammoth difference to your wealth.


Did You Know? - What is the Residential house Rental Yields in India? Reviewed by S. Chitra on March 17, 2016 Rating: 5 Did You Know? - What is the Residential house Rental Yields in India? Residential rental yields  in India are among the lowest in the w...

No comments:

Google+ Followers