There are many advantages associated with owning rental property and they are powerful. To put it in simple words, if everything goes well you can end up making a lot of money by putting property on rent.
Let’s see the few advantages:
- Income from all renters: The biggest benefit you get from owning a property is that the renters will give you a direct stream of income for which you don’t have to put in any hard work. These monthly rents go straight into the business account which is a lot more than setting back any expenses for the given month. For example if you’re renting out a flat for 25,000 a month, it is a given that when it is fully occupied, you will be getting a sum of 3,00,000 per annual without working for it. Seeing such monetary figures, it becomes very difficult for people to not just dive straight in. However, one must always keep in mind that these figures don’t always work out and one mustn’t take it up as it is. However you will definitely get good results, just don’t go into the whole thing being too optimistic. Keeping a flat rented even seventy five percent of the entire year will still give you a good return.
- Income from growth in the value of property: Since you own the given property, you stand a very good chance to gain money from the increase of the property value over a given span of time. Your pre rented property for sale in Ghaziabad will remain as it is, but if high end malls and shops start coming up in the area where your property is located, then the value of it immediately increases. However this is not always positive because it heavily depends on the area where the rental property is located. In some areas the value may rise significantly or it may simply remain flat. The value you bought it at usually doesn’t go down because it either remains flat or it goes up and holds good pace when inflation is at minimum. Being in an above average area allows you to beat inflation and being in a stagnant area will not allow you to keep up with it.
- Sweat Equity: One major factor you must always consider is the sweat equity and how much it adds to the value as you do things like maintaining and upgrading. You must do things like landscaping, painting the walls, furnishing the place and other basic things that won’t cost you too much and will also increase the value of your house. This way you get to charge more for rent and also get property to reach an upgrade in case you want to sell it to someone later on. If you’re into home decoration, improvement projects and interior designing, then this should be right up your alley. You’ll get to do fun things with your pre leased commercial property in Ghaziabad and will end up earning dividends in the long run.