Get good returns with real estate investments
Real estate investments are a very good option these days, as they yield very good returns. There are some important principles that must be followed to obtain good returns. It depends on the type of property, be it a residential property or a commercial property.
Typically, investing in a residential property can generate up to a 6 percent return per year. This mainly depends on the type of property, be it a villa or a residential apartment. It also depends on the following factors:
- Town
- Developer
- Build quality
- Mod cons
Investing in a villa fetches very good rental values. If you are looking for an apartment priced above 50 lakhs, you are better off looking for A grade developer projects that come with all the modern conveniences. This helps you improve the rental value. Connectivity is a very important factor in obtaining the maximum rental performance.
When investing in a property, it is always better to opt for a home loan. This will help you minimize your tax liability and increase your net income. You can deduct taxes for up to Rs. 1.5 lakhs for interest paid per year. You can deduct taxes for up to Rs. 1 lakh for the principal you have paid per year.
In metropolitan cities, the value of apartments increased between 200% and 500% in just 10 years, depending on the location, specifications and apartment amenities. Even reselling flats with all modern conveniences made higher profits if it has a very good build quality and has been well maintained.
Bangalore retains the top spot in absorbing office space for the past few years. Commercial properties produce returns ranging from 8% to 10% for office space. There are a number of IT startups emerging in Bangalore these days. Therefore, there is always a high demand for office space in Bangalore. And so the rental value of commercial spaces continues to rise.
Rental values have been constantly moving from 3% to 9% across India. The retail sector is also recovering rapidly, with investor returns ranging between 10% and 12% annually. The retail sector is on the mend, with returns for investors hovering between 10 and 12 percent annually.