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Why Rental Income Property is a Lucrative Investment

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Why Rental Income Property is a Lucrative Investment

Considering the skyrocketing prices, there is no denying that real estate investments can take up a lump sum amount…often your life savings. 

 

However, investing in income properties has proven profitable for several landlords. It depends on the demand for rental properties in the specific location, amenities on offer, and other factors. 

 

In this article on real estate investments, we have provided an overview on:

 

  • What is income property investment?
  • Different types of income properties 
  • Benefits of investing in real estate for the property owners

 

Whether you are looking to house for rent in bangalore or have multiple residential flats for rent in Bangalore, there are prospects to generate income from real estate investments. Read on to explore the prospects of income from real estate properties. 

 

What is Income Property Investment

 

When you purchase a real estate property for a source of income, it is called income property investment (also called real estate investment). A real estate investor, whether an individual or a company can earn money by putting the property on a lease agreement, monthly rent, or resale. 

Some landlords go an extra edge by selling their properties on rent when demand soars high to maximize profits. Besides earnings from monthly rentals, they make money from the resale.  

 

Types of Real Estate Investments

 

There are several ways to invest in real estate for high returns:

 

1.      Real Estate Investment Trusts (REITs) 

 

Often people keep away from real estate to avoid the problems and expense of regular apartment maintenance. Buying REIT company shares allows you to enjoy high dividends while these organizations deal with the properties. 

 

To ensure safe investments, buy real estate shares from listed REITs. The 3 listed REITs in India that are great for investing include:

 

  • The Embassy REIT 
  • Brookfield India REIT
  • Mindspace REIT

 

2.      Residential Properties

 

Despite the work involved, most people invest in residential properties for a steady flow of income. In metropolis cities, where demand for rented apartments is very high, investors explore the opportunity to buy a flat on a mortgage loan. A calculative approach can help the investor earn returns while paying the monthly instalments from the rent. It also keeps your chances alive to make hefty returns from the resale value in the future. 

 

However, managing multiple properties can be troublesome if you are engaged in other professional commitments. Working with property management services Bangalore can help through such strenuous processes. 

 

3.      Commercial Properties 

 

The rent for commercial properties is very high so is the profit margin. Similar to residential property, you can use it or earn money from a lease contract/rent. 

 

4.      Real Estate Flipping 

 

Flipping has emerged as a business opportunity for many people. The process generally involves: 

  • buying an old property at a low price
  • accomplishing the necessary repairs
  • selling at a high price 

 

Reasons Income Properties are Worthy Investments

 

  • Real estate investment is mainly a source of passive income. You can build assets with this side hustle besides your regular business/job.
  • Acute shortage of land and prices shooting up, the value of real estate property generally escalates with time.
  • Renting a property guarantees a steady source of monthly income
  • A properly maintained property offers great returns during resale.
  • When building a diversified investment portfolio, real estate guarantees high returns.

 

Wrap Up, 

 

The ultimate decision to invest in real estate rental property is always based on the landlord’s assets, income goals, and other aspects. A scalable strategic approach to real estate investment comes with a pool of steady passive income opportunities. 

 

Do you need a rental property manager?

 

SANGAU provide assistance in rental property management in Bangalore. Contact us for a consultation for more details about our real estate management services. For more details visit:- sangau.com



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