Investing in Residential Property has always been a good investment for every Indian as it gives a sense of security to one and gives that much required status in the society.
There are usually 2 types of Investments in Residential Investments.
1. Self Occupied.
A self occupied property generally yields returns after you sell the same and the returns depend upon various factors like when you bought the property and when you sold it.
2. To be leased out
In leasing typically the returns vary from 5% - 7% annually only on the basis of rent received per year. The property escalation factors are not attributed here. With a lot of Multinational Companies, Foreigners, Banks etc in the market it is very easy to buy an apartment and lease the same out.
(In a combination of 2.00L Deposit and 18000 Rent) The Rate of interest on a 2.00Lacs is generally calculated at 12% p.a and the banks of course give a lesser rate of interest. Hence, the calculation is notional and depending on the deployment of funds in a return based instrument which could be ranging from a private placement, mutual funds, private business placement etc.
A licence period can vary from 11 months to 33 months.
The incidental costs for leasing out the apartment are :
Stamp Duty and Registration for a Period of 33 Months – Rs.10,200/- (Usually this is shared between the Licens or and the Licensee)
Any upgrades to the apartment as such.
Brokerage Fees of 1 months rent and 1% on the Security Deposit.
Usually you can get a client with in 10-30 days from the time you put your property up for Licensing.
Typical Agreements are Leave & License agreements.
If you are interested in investing into a residential property which are Pre-leased or if you would like to buy a property and then lease out the same then please feel free to mail us at kuldipsudan@maxxrealtors.com or Please feel free to call on +91-9818813933
We would advice you with investments available and structure out a Good Investment for you. Look forward to hearing from you there.
