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Real Estate Market Updates, News and Investment Insights
Is Co-working Space Investment Worth Giving a Chance?
Co-working, since recent times, has started to become an alluring concept because back when it first started to appear. It counted the disparaging views of the traditional office. If we look back to just a few years ago. Co-working space investment was considered to be a “movement” or a trend, with many thinking it to be quite odd and unrealistic. This article will help you explore all the aspects as to why it has become the new normal today and why it is an investment worth giving a chance. What is Co-working? Co-working is the arrangement in which several workers from different companies share an office space. This allows cost savings and convenience as they use common infrastructures such as equipment, utilities, refreshments, and a lot more. Co-working Spaces in India Co-working spaces are now one of the unparalleled and newest trends in India. The places with the highest demand for such co-working spaces in India are metro cities like NCR-Delhi, Mumbai, Bangalore, and Hyderabad. Need for Co-working Spaces For Employees Generally, most people can be productive in places where they find some quietness. It helps them focus more and concentrate on the work. But, with this being said, it doesn’t mean they are required to stay back in that dull and isolated room of theirs and become lonely. In such situations, co-working spaces come as a rescue. Here, they’d be offered a perfect working environment, i.e. the quietness while working. The discussion space when in need to collaborate with others (as it involves several kinds of people associated with different work nature), etc. Also, a good deal of individuals visits co-working spaces so that they may be motivated by other employees of different companies. Working together with motivated individuals also helps to scrap loneliness. According to studies, approximately 45% of co-working members reported that they found it as a valid option against the isolation. And situations where they found it difficult to finish work in a standard, traditional office space or home office. Primary users of these co-working spaces are the startups. The flexibility that co-working spaces provide to experiment and take risks makes them ideal for startups. For Tenants / Employers Co-working space asks only for minimum deposits yet provides abundant amenities at a cost less than what’s required to pay for traditional office space-thus making it a cost-effective and desirable option for the employers. But, until there’s someone to build these spaces, there is no other way that employees or employers get to enjoy this newest type of working space. Co-working Space Investment Owing to the increase in demand in India, co-working is now one of the fastest-growing markets. This segment has also leaped the commercial real estate sector, and it is has occupied more than 12-13% of CRE investments in India, as per reports suggested by FICCI. The scenario being such in India, it is already at its peak of growth in countries like the US, UK, Australia, etc. With this history of high growth rate in the past and looking at the way it is booming. It proves that this trend is for sure going to take us by storm in the future. This phase, thus, is the right time for the investors to march into this field. Reason for the Escalating Demand for Co-working Space as an Investment The main reason why co-working is gaining importance as an investment option is that it saves a lot on the investor’s part. Real estate costs can be 9 to 12% of the operations cost for an established corporate and even more for a startup. But with shared work spaces, they can save around 20 to 25% of the total real estate costs, and that is a lot of money for the big companies to count upon. How do Investments in Co-working Spaces Work? Investors can invest in co-working spaces in several ways. Directly invest, i.e. invest in a building to further develop into co-working space Through REITs investment Through online platforms Establish a partnership[ with another investor Then they lease or rent their spaces to startups or established companies. Finally, investors get to enjoy the enormous cash flow that the co-working spaces generate. Key Considerations if you want to invest in Co-working Spaces There are a few things that you need to consider before you directly barge into the investment Location Location is of prime importance in co-working, just like any other real estate investment. The first step in selecting a co-working space is to find out the place that’s high in demand. The location should be easily commutable, a bit close to market places like those of suburbs or any prime urban areas. Create Your Financial Model Once you are done with the selection of the location, the next step is to calculate the costs and finalize the budget plans by making some assumptions and approximations. You will have to reconsider additional costs such as building codes and city permits, all things that can quickly add up to other charges. Building codes will vary from state to state, so you must do careful research beforehand to ensure the co-working space complies with all building and fire safety codes. Code of Construction and Housing (CCH) sets standards for such co-working spaces, and they all must be built accordingly. Co-working Space Design and Attractive Amenities Space must be designed in quite an innovative way with good architecture so that it will make the workers there feel very much at ease and alive, unlike what the professional workspace makes them think. Although it does not apply to everyone, many employees in co-working spaces are involved in technology or startup companies. Therefore, it becomes essential that you provide technology that is up to date and reliable for them to conduct their business. Additional amenities like lounges, recreational spaces, spaces for entertainment, etc. have the potential to lure new clients and tenants to your
9 Most Common Mistakes Made by Investors
Not everyone strikes the gold all the time. Many successful investors and traders undergo downfalls as a consequence of their bad decisions. It’s practically impossible to avoid mistakes altogether. Even the most successful investors learn from their failures to mitigate them in the future. So, here are some most common mistakes made by investors. Most Common Mistakes Made by Investors Showing Interest in One Particular Company or Stock: Many investors tend to invest in companies they are passionate about for personal reasons. This is not advisable because falling in love with a company or stock may make it very difficult to sell (since you would be reluctant), and investors end up holding onto the stock for a longer time. This problem may not impact the professional asset managers, but the experienced investors are susceptible under some circumstances. Also, many types of research stated that selling a stock is rather challenging than buying one. Missing a Plan: A familiar dictum for any investment is “Plan your trade, trade your plan.” Before investing even a single penny, investors should ideate their investment objectives, necessities, and if they are willing to confront the risks. Make a plan and stick towards the plan throughout the investment. Also, follow up some essential practices and strategies that lead to success and lead to a fair trade. Not Financially Analyzing Potential Property: The most common mistake any investor or even a potential investor makes is not analyzing the property’s financial status. This will reflect a great loss to the investors. Lack of keen observation will immensely enhance a serious financial problem. So, it’s all in the analysis!. Investors should make sure to collect accurate data that eventually helps them to succeed in the business. More patience is required to get the expected result for the investor. Unrealistic Expectations: There’s nothing wrong with hoping for the ‘best’ from our investments, but we could be heading for trouble if our financial goals are based on unrealistic assumptions. We hope that our bills, buying a few of those “wants”, and other expenses should be afforded easily and our investments should yield good results. Forget your Dreams! We can’t win everything. To achieve our financial goals, it is critically important to assess our risk appetite first. Keep the end goal in mind and don’t expect above and beyond. Don’t Chase The Yields! “Chasing yield” is one of the most common investment mistakes. It means buying an investment, as it offers a good yield rather than a fundamental analysis of the underlying investment. This way of investing in playing with fire because it may cause a considerable risk in most cases. The regular yield managers who try hard to get high returns for the customers are susceptible to chasing yields. Even some individuals tend to differ when they see the highest number. Although we all want to witness and enjoy those high yields, investing solely for high yields is where we commit a blunder. Doubling Down: One common mistake that many potential investors make is making the problem even worse. For example, if our investment returns are suffering a loss, we sink in more money to stabilize the investment, expecting that we may get a profit. But we also fail to remember that a considerable loss may incur, aggravating our current returns. Although doubling down might work once in a while, we can’t rely on it always. It’s just a matter of luck when it comes to investments like the stock market. Be cautions: don’t make hasty and risky decisions. Take advice from senior investors. Also, you can instead try to double the returns. Not Understanding what you Purchase: Warren Buffett and many experienced people in the stock market say that buying shares of something you don’t understand is like paving the way to dig your o, “grave. So, invest in a company only when you understand all their business plans and models. An excellent way to avoid confusion is by establishing a portfolio that varies with mutual funds. Purchasing stocks in a company can be enriching. But only when you get to know all the details of a company and understand them. Buying All at Once: Be it any field or task, making hasty decisions does not get you any reward. Similarly, if you buy many investments or stocks all at once, thinking you can become rich overnight, then you re highly mistaken. You are putting yourself in prone, since you can’t dedicate time and attention to every single one, out-turning all the investments in vain. An investor is said to be successful only if he is patient. One should not rush their way into investing in many at once. There is no need to buy every single share at the time. Average the price by purchasing shares at different times in a week or a day because it would smoothen any short-term fluctuations. Doing so will ensure that the investor is not getting the worst price of the day. Also, you can focus on long-term investments. Not Following the Current Market Trends: It is so naïve to believe that once you understand the basics of investing, all you have to do is construct a portfolio and let it do its work. Although it’s a proven fact that trading rarely produces better yields rather than trading frequently, yet no portfolio remains static. Even the well-administered organizations hit rough patches at times, and the markets also experience dynamic changes from time to time. Always stay up to date with the market trends and the economy and maintain your portfolio vibrantly. Failures are inevitable. We cannot get rid of them always. Yet we could learn about some common behavioral tendencies that help us to cloud our judgement. You can also contact or seek help from reputed investment platforms or stock trading platforms (in whichever field you want to invest) to clear your
What to Except Throughout the Course of an Investment
Let’s assume that you just invested some amount in an investment offering. What will happen with that investment is the big question. Also, over the course of an investment, you may see money reverting into your account. Not only in different amounts but also at varying times. How does this happen and what events revolve behind the investment are few other questions. This article will certainly shed light on all of those questions and give you actual clarity over what exactly happens through the Course of an Investment. Stages in Investment Lifecycle Earn Interests To start with, once your investment gets marked active in your portfolio, it begins to earn interest. Accrued interest is an interest that the investment yields. But is not paid out yet. Depending on the investment plan, you would be paid your accrued interest right up front, or monthly, or quarterly, or on an event-based basis. Payout of Fund Expenses Depending on the offering structure of an investment, a flat annual fund expense will be paid out from the interest that you’ve earned. (For example, annual fund expenses in real estate investments would be tax deductions. Expenses associated with repairs and maintenance, etc.) Once this expense is fulfilled, future interests will be made directly to your account. Pre-Defined Payment Schedule Some of the investment plans have pre-defined payment schedules that pay interest monthly or quarterly. Although your investment is earning interest every day. It is only distributed to you at definite intervals (like weekly, monthly, or quarterly, for example, all depending upon the offering terms). Further, a monthly payment schedule does not necessarily mean that payments will for sure be made on the first of each month. Owing to the processing time it takes i.e., As funds must flow through a long chain of the borrower, originator, the investment company, and then to the investors. Event-based Payment Schedule Some offerings pay interests on an event-based payment schedule. ‘Event-based’ means that investors receive payments post to an ‘event’ i.e. When individual cases within a portfolio settle (also called a ‘settlement event’). Their payment dates and amounts cannot be pre-decided. For instance, take the legal settlements. The time when they’d settle at court cannot be predicted. When investing in a portfolio of several cases, an investor can presume to receive multiple different payments throughout the aimed length of the investment. Depending on the settlement activity rate. Instances might be like; Sometimes several settlements may be made in the same month and trigger multiple payments. Other times there may be longer periods where there’d be no settlements at all. Therefore no payment distributions would be made. Further, few investments, most often the short-term Marine investments. May make one single upfront interest payment for the term of the loan. It’s quite important to go through the details of each individual investment to comprehend the expected payment schedule. Usually, this kind of upfront interest investment with a 6-month term has a maturity date that is 180 days (6 months) from the initial funding date. Return of Principal Amount Depending on the structure of investment, you may also obtain principal payments during the course of an investment. It is significant to note that interest is paid out on the whole outstanding principal vs. interest paid. However depend on how much interest has been paid on the overall portfolio at that point in time when a case (or cases) settle. In a real estate offering that consists of a portfolio of several loans, each individual loan often has differing maturity dates. For instance, if there are two different loans in the portfolio. Loan X may mature in 12 months and Loan B may mature in 18 months. Therefore, investors should except to obtain a portion of their principal back into their accounts after 12 months and the leftover outstanding principal after completion of 18 months. Few Important Considerations It is salient to note that there is a chance that the borrower could return the portion of the loan earlier or later than its presumed maturity. The maturity dates of every loan that a portfolio encloses is always mentioned in detail in the offering’s Investment Memorandum. It is also important to note that once the principal is returned, it will no longer reap interest. However, all the other outstanding principals will continue to generate interest at the scheduled rate of interest associated with the offering until the time it is repaid. Knowing what you are about to reap all through the course of your investment makes the investment life easy for you rather than make you worry about what would happen in the next point in time. This accounts for a good and valid reason as to why you must know all about your investment before proceeding any further with it. Asset Yantra & GAK Group is an online platform that offers various investment plans which are customized based on the common investor objectives. Do check them out to obtain maximum benefits out of the investment. Course of Investment FAQs What are the stages in the investment lifecycle? The stages include: Earning Interests Payout of Fund Expenses Return of Principal Amount What are two ways of paying out interest? They are: Pre-defined payment schedule – Some of the offerings have pre-defined payment schedules that pay interest weekly, monthly, or quarterly, for example, all depending upon the offering terms. Event-based payment schedule – Some offerings have event-based payment schedules that pay the interest post to an ‘event’ i.e. when individual cases within a portfolio settle (also called a ‘settlement event’).
Tax on Rental Income: How to File & Claim to save Rental Income Tax
Landlords in India, like everybody else, must pay tax on rental income. A significant portion of your rental revenue may get lost due to taxation. Do you wish you could unhear it all? Hold on. I bring you good tidings too. Evade Tax? No. Tax Planning? Yes. The Income Tax Act provides you with appealing deductions on rental income. It means that you can still save a portion of your rental income. Real estate is always a high – value investment. You may either invest in the property for your personal use or rent it to a needy renter. One can also invest in either residential real estate property or commercial real estate property. Real estate gives owners a sense of security. It also allows them to generate money if it gets rented out. Under Indian law, the rent generated by the owner is considered income. After salary. One of the most prevalent forms of income in India is rental income or revenue from the property. Many households (particularly pensioners) rely on rental income as their primary source of income. So, what defines tax on rental income in India? According to the Income Tax Act, rental income from property – a building and the land – is taxed under Section 24. It gets taxed under the heading income from house property. According to India’s current tax laws. If a property is leased or rented, the sum received in exchange for the property is referred to as “Rental Income”. It includes any advance payment made as a security deposit. The rental income is considerable, according to the IPC. And should get taxed under Section 24 of the Income Tax Law. Also, the government makes no distinction between residential and commercial property. Even the parking lot attached to your business or home is considered a house property. And is taxed if rented out. As a standard deduction, 30% of your rental income gets taxed in India under the head income from dwelling property. For this standard deduction rate. The applicant must be the legal owner of a property. While income tax regulations impose some taxes on a person who earns rent from a property he has rented out. The tax payer is also entitled to certain deductions from such income. What is the tax rate on rental income in India? It is not the case that the gross rent received is taxed. The municipal taxes payable for the property may get deducted from the rental income for the property. Because rents gets taxed on an accrual basis. The law permits you to claim a deduction for rent that you were unable to realize, subject to criteria. So, after subtracting the two elements. You receive the yearly value, from which you can take a standard deduction of 30% of the annual value of fund repairs, etc. The 30% deduction is a standard deduction. Regardless of whether you spent money on repairs or renovations to the property during the tax year in question. How do save tax on rental income in India? Rental income or income from real estate property is a prevalent kind of income in India. Many households rely only on rental revenue to make ends meet. However, if you are interested in investing money in real estate and earning interest on it. You should be aware of tax planning so that their tax burden gets kept to a minimum. It is also necessary to grasp the distinction between tax planning and tax evasion. So, the following are some strategies that you can follow to save tax on rentals in India. Maintenance Charges: One of the simplest methods to avoid tax is to remove maintenance expenses from the rental income collected. It is a piece of law-hanging fruit. In your rental agreement. You only need to mention a one-liner. In most situations, society maintenance fees get included in the rent. As a result, landlords must pay taxes on maintenance expenses that are not considered rental income. Therefore, an owner can avoid tax on rental income by dividing the amount received into two portions. To illustrate, if you rent Rs.30,000 and society maintenance expenses are Rs.3,000, you should only earn Rs.27,000. You might include a language in the lease that requires the renter to pay maintenance fees directly to the association. Joint Property Ownership: Another excellent technique to avoid tax is co-joining property. I recommend that you only do this with your spouse since you cannot trust everyone. It is the best – case situation if your partner is not working. In this case, you have the choice of acquiring property jointly or simple in your husband’s name. The rental income will get allocated following the proportion of ownership of the property. Thus, you may be able to avoid paying taxes on Rental Income assigned to your spouse. So, let us assume that both the husband and wife are employed. This arrangement is advantageous in this circumstances. If the husband and wife are in separate tax brackets. As a result, you can utilize one of the spouse’s lower tax brackets to reduce the tax on rental income. Municipal Tax: Many individuals are unaware that they may deduct municipal taxes such as property taxes, sewage taxes, and so on from their rental revenue. The only caveat is that the owner must pay all local taxes. Tenants are frequently required to pay municipal taxes. Standard Deduction: If you buy a house for investment and rent it out. It gets expected that you would spend money on repairs and maintenance. It is, by definition, subjective. Thus, regardless of actual repair and maintenance expenditures. You can claim a Standard Deduction of 30% of Net – Annual Value. Semi – Furnished & Fully Furnished Properties: The owners of such properties supply various amenities like Wi-Fi, Piped Gas Connection, DTH/Cable TV, Newspaper, and so on. The owner collects these charges as part of the rent and gives them to the
Commercial Real Estate Trends & Insights
What are Trends? Trends are a possibility to assess the real movement in the market, predict a transformational change in the product in picture, and identity patters that can impact significant factors like demand, supply, business profits, and customer services. Trends are insights into a variety of influences that can impact any nosiness. CRE Trends: Why They Matter? Commercial Real Estate trends help stakeholders understand the bigger picture and the dynamics of the existing market. To maintain the level of competition, excellence, proficiency, and leadership in Commercial Real Estate. It is imperative to comprehend the various trends that affect the market and are highly influential in decision making, planning, and profitability. Commercial Real Estate Trends in India Around a decade ago, Asia Pacific Real Estate or CRE trends in India were at full throttle, and there was a boom in the business despite the global financial crisis. But eventually, things took a downward trend, especially in the case of residential developers, when the banking sector pulled the plug as issued by the Government in lieu of the growing risk of credit that was rolling in the market. Real estate lending took a toll, and even NBFCs were in dire straits, thus leaving Commercial Real Estate of the country without any financial support. Challenges Faced by the Commercial Real Estate Sector in India Globalized wars regarding increased volatility in currency. Lower yields and productivity and a shortage of properties that were worth investing in. Hike in the rate of interest and huge cost to avail of finance of CRE business. Understanding CRE trends and how to utilize them. Intense competition from Global buyers, especially from Asia. Below is a comparison of Indian cities and the prospects of city investment. City City Investment Prospects in 2020 Singapore 6.31 Ho Chi Minh City 6.06 Melbourne 5.95 Shenzhen 5.86 Shanghai 5.73 Guangzhou 5.36 Mumbai 5.07 Beijing 4.97 New Delhi 4.93 Bangalore 4.90 Hong Kong SAR 3.93 We have three Indian cities featuring in the list of Prospects in CRE investments – Mumbai, New Delhi, and Bangalore. But the rate of prospect is much lower in competition to other global cities. Why should one study CRE Trends? Let us look at how the Commercial Real Estate stakeholders benefit by understanding the trends that drive evolution and help the relevant people involved in navigating the market successfully. These insights into CRE trends can enhance firms’ performance and leverage the industry’s successful working through proper research and scrutiny of these trends. It Helps to Create a Strategy Trends in CRE that make owners proactive rather than depend on haphazard changes in the industry, which is unreliable. Information gathered from CRE trends can be useful in gathering relevant information to strategize the next move. Proactively plan the action, and monitor and control the situation effectively instead of being blindsided by offhand and irrelevant market information. Proper assessment and analysis of what worked for the real estate better and the reasons of its growth. Identify its scope for improvements, and work on it to avoid hiccups that could evolve and respond accordingly and accurately. Helps in Identify Opportunities Trends in CRE helps owners and players to identify and gauge the opportunities and prospects. There could be several openings and areas of growth that they can venture into, like expanding new segments of assets, driving efficacies by discovering various other geographic areas, and thriving markets, exploring innovative and updated technologically sound markets much more. It is highly recommended to take the existing and forecasted trends of the CRE market into consideration to assess the market niche that stands by the current strategy used. Finally, to Drive Excellence and Efficiency Keeping a tap on the latest market trends can solve many business and finance related problems and can offer multiple solutions to a myriad of blockages that a firm many face. Keeping track of emerging and innovating technologies can streamline the planning, strategizing, and controlling of the firm’s operations, thus providing value to investors and investment management solutions. CRE Technology is a Basic Necessity CRE Technology has greatly influenced the current trends of growth in the industry and is a basic necessity for investors. Its transition from just being a luxury has delved into the fact that today without the use of the latest and conventional meals of technology, it is hard to cope with the fast churning of the real estate business. CRE based technology has greatly benefitted the industry to save valuable time that now can be invested in value – add services. It has become the driving force for back – office efficiencies. It has immensely helped sponsors and investors to get the maximum output thus increasing their expectations and promising them a better tomorrow. More than 80% of investors are keen on working and investing in modernized firms that have prioritized and emphasized on the emerging world of technology. Predictive analytics has been a turning point in technology and has enhanced the market to a new level. Commercial Real Estate Trends are futuristic and highly advantageous, keeping the future in perspective. They provide easy access to visualized data and vital information on a real – time basis and on smartphones, which were never the case in the conventional way of running CREs. These trends are the new normal, and professionals in the CRE industry thrive on adopting and using technology to make data – driven and profitable decisions and keep a steady pace with the investors’ evolving markets and demands. A strong market, together with the boom in technology and the increased interest and expectations of investors, can change the market game altogether and create a well – established background for the CRE industry. Asset Yantra & GAK Group is a Wealth Tech platform that offers real estate investment options in major cities like Bangalore, Chennai, and Hyderabad, with IRR ranging from 14 to 21%. CRE Trends FAQs What are the basic types
6 Reasons Why Investing In Fractional Property Ownership is the Best Retirement Plan
The internal rate of return (IRR) on fractional assets ranges from 13 to 20 percent, which is greater than most retirement plans. While there are numerous passive income sources and retirement corpuses. Investing property is the key. Commercial real estate (CRE) fractional ownership is one such asset class that offers an ideal opportunity when analyzing a long-term and reliable investment. In combination with a sound investment plan, commercial real estate (CRE) can be a reliable asset class. That provides capital security, regular income (often between 10 and 12 percent). And portfolio diversification, all while reducing possible risks. This article will address all your concerns regarding fractional ownership for senior citizen investors. Understanding Fractional Ownership In the world of investment, commercial real estate has been a closely guarded secret. In comparison to other solid asset classes, it has provided returns ranging from 8 to 15 percent each year for decades. However, due to the large ticket size, lack of knowledge, data, and transparency. It has only ever been available to HNIs, private equity companies, and family offices. Fractional ownership divides a single asset into pieces, allowing investors to gain ownership of a piece or more dependent on their investment. It’s up to the investor to determine what type of asset they want to put their money into. Which allows them to craft an investment strategy that fits their risk tolerance. Fractional investment is becoming increasingly popular in the United States and the United Kingdom as a profitable way. For individuals to invest a little portion of their money instead of significant quantities in real estate. Why is fractional ownership an excellent resort for my retirement corpus? Regular Source of Monthly Income: After retirement, your finances become more of a problem if your regular monthly income quits. As a result, one of the most critical elements of retirement planning is guaranteeing a steady stream of income. That will provides sufficient finances long after you retire. Investing in fractions provides a reliable monthly or quarterly stream of passive income, as well as potential for long-term capital gain. Stable Asset Class: Younger investors may afford to take chances with their assets, but retires must be cautions. Capital appreciation and rental income are 2 ways fractional CRE investments pay off. There are several advantages to investing in commercial real estate (CRE), including consistent profits and regular cash flow. Uncomplicated Investments: It may appear difficult and complicated to include CRE in your investment portfolio because of the complexities involved. But owing to new-age tech players who provide an easy-to-use one window platform, investing in real estate across the country has been easier. Data-driven selection, strict financial and legal due diligence, and thorough selection criteria ae used to eliminate all asset-related risks besides paperwork and site visits. Security of Capital: Property has long been regarded as one of the safest forms of investment sue to its tangible, physical aspect. As a result, it’s worth is directly tied to the building’s ongoing operations. Its value does not fluctuate according to the performance of the market like equities or mutual funds do. Goldilocks asset: Fractional property is organized such that it’s neither prohibitively expensive (like buying a house by yourself) nor limitingly small, like the Senior Citizens Savings Schemes (SCSS), which cap investments at 15 lakh. The fractional property allows investors to pick and choose how much they wish to invest up to Rs.25 Lakh. Liquidity alternatives and smooth operations: With fractional ownership, it’s easy to move between different assets. In addition to the benefit of entering CRE investment at a lower investment bracket, investors are not troubled by any overheads. Exiting the building is just as simple and quick. How much money should retirees put into fractional ownership? Fractional Ownership is considered a low-risk, high-return investment by industry professionals who believe it should be included in everyone’s retirement portfolio. Seniors can put up to 25% of their retirement funds into fractional ownership, which can provide a consistent stream of rental income while also increasing their wealth. The balance, according to experts, can be placed in secure vehicles such as debt mutual funds, money market funds, and government-backed savings plans. According to experts, investors that prefer fractional ownership should only invest in pre-leased Grade A assets to protect their capital. Conclusion There is a lot of uncertainty in retirement planning because of the pandemic, and investors have had to rethink their investment possibilities as a result. If investors want to reach their financial goals in the post-Covid world, they’ll have to think hard about how to deal with financial shocks. CRE is a billion dollar business in India, and it’s only going to keep growing. The developing formal economy, as well as high-end commercial buildings, make it an attractive place to invest, allowing you to achieve your financial goals over the long term. Fractional ownership and crowdfunding investors can find high-quality A-grade investment options with Asset Yantra & GAK Group India’s fastest-growing real estate platform. We guarantee great liquidity, transparency, and an IRR between 14 and 21 percent. Comer visit us and start your investment! 6 Reasons Why Investing In Fractional Property Ownership is the Best Retirement Plan FAQs Why is Fractional Ownership a great retirement asset class? Fractional ownership is one of the finest investment options for senior citizens because of the monthly rental income, capital security, hassle-free investment, and lower capital needs. What are the benefits of fractional ownership for senior citizens? Up to 25% of retirement assets can be invested in fractional ownership, resulting in a constant stream of rental income and capital gains. The rest of the money can be put into secure products like debt mutual funds, FDs, and government – backed savings plans according to experts.
Everything you need to know about Investment management companies in India
An asset management company (AMC) is a financial services firm that invests in a variety of mutual fund schemes. The money invested in these schemes is often obtained from the AMC’s clients and then invested in assets that are consistent with the AMC’s financial objectives. As a result, it is critical to invest with an Asset Management Company that offers a diverse range of investing option with excellent returns on investment. What is an asset management company? And functions of Asset Management Company Asset Management Companies manage their clients’ money. They select the best assets from fast-growing, riskier equities to safe but slow-growing bonds. The goal is to achieve the desired return while maintaining a level of risk that is acceptable to the client. Asset management firms handle the entire process of developing an investment portfolio for their clients and provide access to new investment opportunities that would not be available otherwise. The 4 primary responsibilities of asset management firms are as follows: Determine your financial goals and risk tolerance: Asset Management companies require critical information. These are how much the customer is willing to risk losing, how much return they want when they need access to their money, and how much they want to invest. Maintain a record of potential investments: Cash deposits and government bonds are 2 types of investments in young companies with uncertain futures. An asset management firm must be aware of all available options and evaluate investment risks and rewards. Create investing strategies: Each customer requires a portfolio of assets to their specific goals. A diverse portfolio with investments spread across a wide range of assets reduces risk. It’s akin to not putting all of your eggs in one basket. Performance Evaluation: investment management firms are required to provide unitholders with information that has a direct impact on their mutual fund holdings. It must also provide frequent updates to investors on sales and repurchase, NAV, portfolio data, and so on. In layman’s terms, investment management firms must respond to mutual fund investors and protect their interests. They must also address customer concerns about their mutual fund schemes. What is the difference between investment management and asset management? The investment strategy is brimming with jargon and superfluous titles, which have implications for holding the money. As a result, effective investment management becomes a daunting challenge for investors. However, there are significant differences between investment management and asset management. The terms’ definitions: The power of an investor’s assets, such as equity, fixed income securities, and real estate, is referred to as asset management. Investment management is primarily concerned with overseeing the property’s day-to-day operations. Objectivity: The asset management service is primarily concerned with maximizing the investor’s returns from various real estate projects. Investment management seeks to balance all possible uses of an investor’s money. Either by preserving or maximizing wealth over time. Investment management has a broad scope. Clients: A distinction between asset management and investment management is the clientele. Asset management frequently works with individuals or businesses with large sums of money, whereas investment management works with individuals or firms of all sizes. Need: Most investors prefer to diversify their portfolios by including various types of asset property. However, no one is interested in displaying all of the assets on the market at once, especially, those that lack substantial insurance coverage. Hiring asset managers can be beneficial in providing expert advice on asset allocation and asset selection that is compatible with the investment strategy. Performed Functions: Asset management entails asset allocation, analyzing historical and current data, identifying new investment opportunities, risk-return analysis, portfolio diversification strategy, and asset identification. Assigned Responsibilities: The primary responsibilities of asset management include maximizing total ROI, financial analysis and projections, cash flow direction, capital and resource allocation, determining the holding period of each property, and so on. In-charge: You must hire and pay asset managers to find and offer suitable assets that align with your goals for asset management. If you hire investment management, you must pay investment managers to provide you with long-term investment prospects. What is the difference between asset management & wealth management? In recent years, the concept of asset management and wealth management has grown in popularity. Although they sound similar, there are some distinctions between them. The differences between wealth management and asset management are as follows: Criteria Wealth Management Asset Management Meaning Wealth management is the management of a client’s entire financial situation, not just investments. Asset management is the management of assets that are only for investment purposes. Focus Wealth management encompasses both asset management and financial planning. Asset management is a subset of wealth management with a narrower focus. Functions It’s functions include investment management, asset management, portfolio management, tax planning, education planning, legacy planning, estate planning, insurance, charitable giving & retirement planning It encompasses a variety of management functions related to investments or assets, such as analyzing past and current data, risk-return analysis, projection, asset management, strategy formulation, and identification of suitable assets. Registration Wealth management advice gets given by people who are investment advisors. A broker-dealer is someone who provides advice in the field of asset management. Responsibility The relationship between the wealth manager and the client is one of the “Fiduciary” responsibilities, which means that the client’s interests come first. An asset manager’s responsibility is to offer products suitable for the client based on his financial situation. Management approach Entails coordinating financial experts, lawyers, accountants, insurance agents, and other professionals. Asset management is a more sophisticated and creative approach, as asset managers offer products based on their financial expertise and direct market involvement. What is Property Investment Management? How do you pick the best property investment management method? Property Investment Management is the act of managing money invested in real estate, often to maximize earnings and capital growth. It also entails monitoring the performance of all invested assets and developing long and short-term strategies to ensure good capital growth and portfolio performance. As a property
How to Create a Tax-Smart Portfolio with NRI Real Estate Investments
India emerged as one of the world’s fastest-growing economies. Resulting in appealing investment opportunities for Canadian NRIs in India. While living in a distant nation, many Indian migrants want to invest their money in India. It is impossible to deny that they are emotionally tied to their homeland. Thus they want to lay a foundation for retiring and developing their financial capital. Equity has generally rewarded diligent long-term investors, whether in India or abroad. It is perhaps the greatest long-term-oriented asset class. Historically producing an annualized gain of 10-12% fir Indian investors. As an NRI you may thinking if and how much you should invest in Indian stock. An investment plan is strategy for allocating money to future-generating activities such as bonds, equities, real estate holdings, or businesses. The investor thinks that through investing in an asset, his or her money will increase or improve in value in the future. Investment options for NRI investors There are several investment choices available in India for NRIs based on their needs and financial objectives. Here are just a few examples: Fixed-Income Investments This is the most prevalent type of investment among Canadian NRIs. The investor may keep his money secure for an indefinite amount of time while earning average returns. The bank determines the interest rate, the term of the FD, and the amount of something like the deposit. Fixed deposits could be opened using an NRE, NRO, or FCNR account. Investing in Mutual Funds To participate in mutual funds in India, an NRI must have an NRE or NRO account. For NRIs, investing in mutual funds is indeed a cost-effective alternative. However, because of rigorous requirements imposed by the Foreign Account Tax Compliance Act. Several mutual funds do not accept applications from NRIs resident in the United States and Canada (FATCA). Non-Resident and ordinary Indian investors face the same tax rates. Short-term capital gains from stock and equity-oriented hybrid funds are taxed at 15%. Whereas long-term capital gains above Rs.01 lakh are taxed at 10%. Scheme National de Pensions (NPS) Canadian NRIs can invest in stock, debt, or a mix of the 2 under this plan. An NRI can register an NPS account provided he is between the ages of 18 and 60 and has an Aadhaar card and a PAN card. An NRI must have an NRE or NRO account. Direct Investment Portfolio Investment Scheme (PIS) allows NRIs to invest the National Stock Exchange of India Ltd and earn better returns. To engage in the stock market, the investor must maintain a constant eye on the market condition. Which can be tumultuous at times. NRIs can invest in the stock market. If they have a Demat and trading account, an NRE, an NRO account, and a PIS account. Real Estate Real estate has traditionally been the greatest investment choice for non-resident Indians (NRIs) in India. There are several real estate investment possibilities accessible, including plots, villas, independent houses, and social apartments. The value of the rupee versus the dollar, however, and the Indian real estate market, dictate the returns and assessments. Securities issued by the federal government Government Securities (G-Secs) are indeed a risk-free investment for NRIs since the government guarantees both the interest and principal amount. Through the Fully Accessible Route. NRIs may invest in this plan (FAR). PPF A PPF Account cannot be opened by anyone with NRI status. If you held a PPF account before leaving India and are now an NRI, you can keep it. An NRI visiting Canada can spend up to 1.5 lakh dollars every fiscal year now and continue to do so till the investment matures. He will be unable to extend the account after it has reached maturity. If an NRI files IT returns in India. He is entitled to Section 80C income tax deductions for PPF deposits. Important Considerations for Non-Resident Indians NRIs should bear in mind that they must create an NRE and NRO account before any transactions may take place. Foreign currency Non-Resident accounts should be formed to prevent volatility in the exchange rates of foreign money earned. When purchasing real estate, an NRI should examine if it’ll be owned by the joint owner or a single owner, as tax responsibility is borne by the first owner. To make investments in India, NRIs must obtain a Permanent Account Number (PAN Card). An NRI must get a Portfolio Investment Scheme (PIS) letter from the Reserve Bank of India before investing in the Indian equities market under the PIS scheme. Although NRIs have various investment alternatives open to them, including mutual funds, bonds, or direct equity, they need to educate themselves on the schemes first. NRIs must be aware of the rules governing repatriation. According to FEMA guidelines, in the case of a real estate purchase, repatriation of sale profits is limited to a maximum of $1 million every fiscal year. They may, however, repatriate over $1 million per year if it is property being donated. Conclusion These are the numerous investment opportunities available to NRIs in India. They can weigh the advantages and downsides and use their judgement before investing in one or both of those possibilities. Asset Yantra & Gak Group is the fastest – growing wealth – tech platform in India, specializing in commercial property investments. Asset Yantra caters to investors from all around the world. It also provides high – quality investment possibilities at low costs through fractional ownership. NRIs can have access to grade-A assets without any time-consuming obstacles. Asset Yantra offers investment options based on risk tolerance and individual investor objectives such as passive income, capital appreciation, and risk control. FAQs on Tax Saving Portfolio with NRI Investments How NRIs can lower/avoid TDS on property sales? The lower the TDS on the sale of property
REITs: A Promising Income Solution in an Inflationary Environment
Real estate investment trusts (REITs) are a popular investment option for many investors. The number of REITs in India has risen from 12 to more than 250 in the last few years. However, these investments have also been hit by an increasing rate of inflation which has made them less attractive to some investors. The rate of inflation is picking up pace and it may be a good idea to look at various asset classes. To protect your hard-earned money from the eroding value of the Indian rupee. REITs are one such asset class that has been performing well in recent years with many investors looking for income, diversification, and liquidity. There are many ways to invest in REITs: By buying units directly from its promoter/shareholder; By investing in an active fund manager’s portfolio (or any other mutual fund). Or by buying shares of an open-ended fund like mutual fund that invests primarily in real estate companies. REITs provide an opportunity to build a portfolio of quality real estate assets at a low cost. They are generally easier to invest in than direct real estate investments. And can be used as a long-term investment avenue or even as an income-generating tool. The current scenario is very favorable for REITs as they offer returns on capital invested. Through regular dividend payments, sale proceeds from the property sale. Or through re-investment into new projects/properties which would result in higher yields over time. The next step would be selecting the right fund manager. Who will guide your investment decisions based on your risk appetite and financial goals till retirement age In an inflationary environment like the one we are currently experiencing. Most of your investments would have lost value because of rising prices. Real estate is different from other asset classes because it can be rented out at a reasonable price. Which means that you can earn good money from renting out your property without having to worry about its price falling as much as other assets do when inflation goes up. Suggested for you: REITs vs Direct Real Estate: Confused about Where to Invest? Here’s how to find the perfect fit for you The real estate investment trusts (REITs), in this scenario, can prove to be a boon for such investors. REITs are a good option for investors looking for a stable and regular income. These entities have been around since 1957, with the first REIT being established by Charles Ellis and Edward O’Neal. Today, there are over 200 REITs in the U.S., with the most focusing on commercial properties (i.e., office buildings) The optimal solutions to the income problem in a rising interest rate environment REITs have been a popular choice for investors who want to diversify their portfolios. But also want some level of stability in their investments. They can be considered as an alternative way to generate more income from your existing assets. In addition, they provide liquidity when needed and offer protection inflationary pressure on capital markets (in case there is no dividend payout). An opportunity to build a portfolio of quality real estate assets at a low cost REITs are the most popular real estate investment vehicle. And they offer a diversified portfolio of quality real estate assets at a low cost. REITs allow investors to invest in real estate without the need for large capital expenditure because they purchase shares in a company that owns or manages properties. This means that you can buy shares in important parts of your portfolio, such as office buildings. Without having to purchase an entire building yourself or pay rent on top of what you’re investing to own an asset like this one. REITs: easier to invest in than direct real estate investments As with any stock or bond exchange, you can buy and sell shares daily. This means that your investment will always be liquid and available for withdrawal at any time. If a particular property doesn’t have enough cash flow to cover its operating expenses. Then it can be sold off at market value so that other investors don’t lose money when they purchase it from the seller. Additionally, REITs are also listed on stock exchanges, so unlike private companies that don’t trade publicly (or only do so irregularly). There is no risk of losing money if an investor doesn’t know about an upcoming sale or dividend payment. Because everyone has access to all information about those events through their brokerages websites! How do REITs compare to other Investment Options? One of the biggest advantages of REITs is that they offer better liquidity than direct real estate investments. If you buy into a REIT and decide to sell your shares. They will be available at any time without going through a lengthy process of selling off shares at below – market prices. This makes them an excellent way for investors who want immediate access to their investment portfolio or those with specific needs like financing needs or cash flow needs. REITs are also a good way for investors who want diversification in their portfolios but don’t want all their assets tied up in one type of asset (such as real estate). You can get exposure by owning multiple types of assets within one fund. Like stocks, bonds, commodities, and more and then reap the rewards when prices go up over time because each type has different risks attached.” Conclusion In this article, we have covered the basics of REITs and how they are different from other instruments like stocks, fixed income, and gold. We hope that you found this information useful and decided to learn more about REITs. To invest in a wide range of lucrative real estate assets, choose Asset Yantra & Gak Group.
9 Investment Habits to Develop for High Passive Income
In terms of financial management and earning potential. Millennials are the most privileged generation. They can now invest, save, spend, and do a variety of other things that were unthinkable only a few years ago with the click of a few buttons. Or in a matter of minutes that were unthinkable only a few years ago. However, with each new financial benefit comes a new set of financial requirements, which change on a regular basis. Millennials’ financial needs, in particular, are rapidly changing. As a result of this, their business practices have shifted. For example, before the commencement of the Covid-19 epidemic in March 2020, millennials in India were famous, for splashing on a new-age lifestyle that entailed high expenditures. However, unlike previous generations, millennials were not afraid to spend big, even if it meant entering into debt through credit card bills or personal loans. India has one of the world’s largest millennial populations, accounting for approximately 34% of the total population. Millennials have grown up with rapid technology advancements. As a result, like the convenience of digital platforms. Even when it comes to investments and money, people increasingly prefer digitally acquired assets that fir into their fast-paced lives and objectives. Top Habits to develop to earn higher returns on your passive income investments Being at home during lockdowns and having easy access to trading apps have given wings to millennials new money-making habits, which are not limited to stock markets or Cryptocurrencies. Rather, they are gleefully investigating a slew of other possibilities. 10 new money-making habits among millennials are as follows: Possession of Fractional Properties Property fractional ownership has arisen as a new financial concept in which millennials are interested. Fractional ownership is an investment toll that is best suited for young people since it provides greater and more secure returns than commercial real estate (CRE). It provides a consistent stream of income that can supplement existing revenue significantly. Long lease contracts and rent escalation ensure a consistent supply of inflation – adjusted income, allowing them to be financially self-sufficient. It has also been found that millennials invest approximately 30% of their income in fractional assets, and this figure is rising Day trading, stock market investing, and initial public offerings (IPOs) Lockdowns and working from home have provided many millennials with adequate time to monitor stock market events. Day trading has become a lucrative side income option for millennials thanks to the availability of simple-to-use mobile apps. Investing in and Exchanging Cryptocurrencies Even though Cryptocurrencies are not regulated in India, millennials are the driving force behind the adoption of these new-age digital assets in the country. In general, millennials are lured to a culture of earning passive income from their time and investments. Crypto investments are particularly popular among this age group. In fact, millennials account for more than half of our investors. Another factor is that millennials are eager to learn about this new technology (Block chain) and the new opportunities that it brings – decentralized finance or Defi, staking, liquidity pools, and NFTs are all new and trending options. Professional Development It is most likely the optimum time for people to demand a salary commensurate with their abilities. Rapid technological advancements are rendering college education obsolete with each passing pay period, creating a high demand for qualified workers in the labor market. Millennials have seen this potential and are upskilling themselves in any way they can. Influencing the financial habits of others Many millennials have turned to internet platforms such as YouTube, Twitter, and LinkedIn, as well as blogging, to influence the financial habits of others. They have not only earned hundreds of thousands of regular consumers of every piece of content they have published online, but they have also made actual money in the process. Adding value to the gig economy Multiple internet platforms enable Millennials to supplement their regular income by making the greatest use of their skills through freelancing work. While millennials must improve their spending, saving, and long-term investing behaviors, they must also become more financially conscious. One thing they can teach us is how to maximize our earning potential. Automating the generation of riches Millennials are instilling a new money-making habit by automating the process of investing or wealth development. They are now doing so by setting up auto-debit for their mutual fund investments closer to the day their salary is credited. They will be able to set up triggers for automated investment throughout the month depending on transactions in their linked savings account in the future. Online Financing Digital lending via various online platforms is one of the many new money-making opportunities for millennials. In fact, according to a recent survey, millennials dominate both digital lending and borrowing on its platform. Due to its technological prowess, simplicity of the platform, and immunity to market volatility, peer-to-peer lending is one of India’s fastest-growing financial industries. The need to constantly educate themselves on new investing options and all things digital drives today’s millennials. Digital Gold Investing Digital gold is quickly becoming the asset of choice for millennials looking to build and safeguard wealth. Millennials seek ease of investment and higher returns, but they also seek assets that help them meet their aspirations and serve as an emergency fund. This technology savvy generation places a premium on time-saving applications. Because digital gold is available on your smartphone 24 hours a day, 7 days a week, millennials are drawn to the convenience and security it provides – especially in light of the pandemic. Conclusion It’s not easy to start a side business or figure out how to invest your money when you’re short on time, but the results is well worth it. The money you generate from passive income will surely put you well on your way to meeting your financial objectives and bringing you one step closer to ultimate financial freedom. Find out where
All the Banking Details to know for NRI Investments in Indian Real Estate
Property investment is the most well-known investment vehicles for NRIs. As a result of strict rules, someone who has an Indian passport can buy property real estate. Thus, it makes the process extremely simple. According to a report, NRIs spent $13.3 billion in the India real estate industry in fiscal year 21, up from the previous estimate of $13.1 billion. The rupee’s depreciation, combined with regulations created by the reforms, has prompted many NRIs to invest in India real estate market. Knight Frank’s Active Capital reports that India real estate’s demand has skyrocketed among both domestic and non-resident Indians. The investments in India real estate also increased by 137% and $3.2 billion in 2011-23 – $7.6 billion in 2014-16. Why do NRIs rush to invest in Indian Real Estate? Low Property Prices: NRI investors should look at the current slowdown in the real estate market. As a result, when compared to other global real estate markets, Indian may offer investors better money value, with higher returns in less time. Tax Advantage: Non-Resident Indians (NRIs) can invest in an estate in India and save taxes in the very same way that an ordinary Indian citizen does. NRIs can claim a tax deduction for the principal repayment and interest component of a home loan. Furthermore, if a property gets sold after 2 years from the date of acquisition, the profit on the capital gain is tax-free. Furthermore, when an NRI sells estates in India, TDS (tax deducted at source) is calculated at 20% on capital gains and 30% on capital gains. The final tax rate, however, is the same for NRIs and citizens. Rental Returns: Rental returns are is highly advantageous for NRIs, it is so since most put money in real estate only to lease it. Consequently, the property becomes capital. The renter’s money also serves as a consistent cash income flow. Commercial estate properties leases are for extended periods which is an income. Even though the renter must deduct 30% TDS (tax deducted at source). The remaining income gets repatriated under the provisions of the FEMA. Sale earnings of the property also are repatriated as per the statute. Retirement Advantage: Reverse mortgages are becoming more common in the United States. India, on the other hand, is currently preparing for this system. NRIs looking to retire in India may be able to invest in and benefit from reverse mortgages. The money obtained from a financial institution for this mortgage type does not attract the tax for NRIs. Can an NRI invest alone? Yes, an NRI can solely purchase properties in India. He can, however, invest in and own property with any other NRI. It is critical to understand that an Indian resident or a person who is not permitted to invest in Indian real estate cannot become a joint owner of such property. It is true regardless of the second holder’s contribution to the purchase. Do NRI investments in Indian real estate attract tax? Yes, there is NRI real estate investment tax. NRIs get required by law to make payments of TDS of 20%. If the property gets sold within 3 years of the purchase date, regardless of the tax slab, they get subjected to a TDS of 30%. The difference between the sale and purchase prices gets used to calculate capital gains for short time. Where can NRIs invest in Indian Real Estate? Every NRIs thought and the question is, ‘Where should I invest in the Indian real estate market?’ The Reserve Bank of India (RBI) has granted NRIs general permission to purchase any residential or commercial property. They are not required to seek specific approval from the central bank, nor are they required to send any communication notification to the RBI in this regard. The properties available for investment are as follows: CRE: If you buy a property to lease to an SBI Bank, it is considered commercial real estate. CRE is the quickest sector. The investment CRE rose dramatically in metro cities. NRIs invest in this real estate type. They can also invest in CRE through fractional ownership. Residential Estate: Residential real estate is real estate investments for individual use. Such properties are preferred by NRIs looking to grow their wealth. They also get rented, and the landlord gets steady money due to deposits. An NRI who has always invested prefers CRE investments more than residential real estate. It is so since the profit is lesser in residential real estate than in CRE. The costs of maintenance are higher than in commercial properties. Land for Agriculture: the FEMA in 1999 does not permit NRIs to invest and own any land used for agriculture. But, supposing he wants to buy it in India, he must request the RBI. But, the purchase is still subjected to approval. Property used for Plantation: NRIs are not permitted to purchase property used for plantation as they are not permitted to land used for agriculture. There are some exclusions to this rule like if the NRI inherits the property. He can seek approval from the RBI. Banking Details for NRI Investments in Indian Real Estate When purchasing Indian property, NRIs must conduct the transaction in Indian rupees and through local banks. NRIs who want to invest in India should open an NRI account with any authorized Indian bank. NRI property investors must route their transactions through Indian banks, and they must use NRE/NRO accounts for all inward money remittances. They can submit post-dated cheques or choose ECS from their NRE, NRO, or FCNR accounts. The NRI must verify all documents before approaching any banks for funds. Next, obtain a certificate from the seller stating that there is no lien on the property in question. If the seller owns the property jointly or inherited it. Check that the title deed is clear. NRIs must also ensure that no other dues or bills with any authority get cleared. Asset Yantra & Gak Group is the fastest –
Real Estate Crowdfunding: What is it and How It Works?
Real Estate Crowdfunding is currently one of the most popular new strategies to diversify your financial portfolio. It appeals to investors of all ages and backgrounds. Crowdfunding enables you to pool your money with others online to buy a home (or a piece of home) as a group. And it’s a great way to diversify your assets by investing in real estate. In essence, real estate crowdfunding allows you to increase or expand your wealth while also allowing you to enter the world of owning property and rental with a low initial investment. Here, you’ll find out more about real estate crowdfunding as a type of online investment and a convenient way to establish or grow your financial assets. As well as a list of the best crowdfunding websites to visit. What is Crowdfunding in Real Estate? The method of requesting the general public to contribute money or starting capital to help support new companies is described in the landmark book “The Crowdfunding Bible”. Concepts can be presented directly to everyday internet users via this type of online fundraising, in which open calls to possible investors are put on websites alongside potential investment opportunities. These individuals can give financial backing for existing or future real estate ventures by contributing to a pool of funds that is collectively generated from others with similar interests. These opportunities can be in the shape of residential or commercial holdings and can include the development of new housing, retail, or office space, as well as partial ownership in existing holdings. Individuals may be interested in and researching various types of real estate opportunities for a variety of reasons, including: Possibility of diversifying assets and portfolio holdings. In comparison to traditional real estate ventures, beginning capital is not required. The shared cost structure allows financiers to invest in greater property portfolios than they would otherwise be able to. Multiple stakeholders share the risks associated with ownership. Access to unique and/or new opportunities. In addition to residential homes, you can own commercial real estate or a real estate portfolio. Provides real estate market visibility without the requirement for personal upkeep and maintenance. There is no need to independently qualify for, obtain, or make regular mortgage payments. Does not require properly and asset owners to physically guarantee loans. How Does Real Estate Crowdfunding Work? Purchasing an investment property is a typical and popular activity among people looking to build or increase their wealth. Especially now that mortgage rates are near record lows. However, acquiring real estate frequently necessitates qualifying for and obtaining a mortgage from a lender such as a bank of credit union. This, in turn, may necessitate a hefty upfront payment from these investors, as well as the financing of normal expenses in the form of continuous invoices. Buyers must also maintain and repair any investment property holdings regularly, pay for maintenance & utilities, and pay annual property taxes. Real estate crowdfunding, on the other hand, encourages investors to combine their funds to fund real estate investments. Through online financial technology (fintech) or crowdfunding portals, to make a one – time or continuous profit. Getting started with these internet-based investment alternatives usually only requires a few hundred dollars. Money is frequently invested in Real Estate Investment Trusts (REITs) and other similar financial entities. Which act as holding corporations for a variety of real estate ventures. Investors can have access to unique private market property assets. That would otherwise be unavailable to the general public through crowdfunded real estate providers. They also tend to give larger returns than publicly – traded REITs, reflecting the higher level of risk that these investments may entail. It’s crucial. Like with any private investment holding in which you’re considering investing money. To do your homework and research ahead of time, and not overextended yourself financially. The Benefits of Real Estate Crowdfunding Like any other kind of real estate investing, real estate crowdfunding has its ups and downs. Before investing in a crowdfunded real estate project, it’s vital to consider the following benefits and drawbacks of connected sites and investments. Pays much higher dividends than standard real estate investments. Allows property owners to diversify and extend their financial portfolio, which is a good thing. Access to one-of-a-kind real estate projects and opportunities. When compared to typical real estate ventures, it eliminates several common difficulties that property owners and landlords face. Crowdfunding platforms may charge management or advisory fees to investors. Participants must pay taxes on any dividends they earn because assets cannot be easily transferred or unloaded. Many platforms and projects, such as fresh products, lack a long track record of success. To engage in some systems, individuals must be accredited investors (quite well-capitalized). How to Get Started with Real Estate Crowdfunding? It’s not difficult to identify real estate crowdfunding sites that are ready to accept your contributions on the internet. However, before jumping into online property investments, it’s critical to conduct an extensive study and due diligence. Here are a few things to remember when you get started. Compare and contrast websites, services, cost structures, terms and investment opportunities and classifications. Examine the benefits and drawbacks of every online estate crowdfunding method. Consider how more you can invest safely without going overboard. Calculate how much of a return on the investment you want to get. Determine how long your money will be locked up and how long you can go without accessing it. Examine the types of real estate and property holdings in which you’d like to invest. Prepare any appropriate papers or tax filings to demonstrate your position as an accredited investor. Examine and analyze customer feedback and comments to see what current investors have to say about a particular website or service. Consult your accountant to discover the tax implications of your investments. Consider the best financing vehicles for crowdsourced real estate investments. Real estate crowdfunding provides a unique and exciting opportunity for investors of all backgrounds and levels
Dreaming of a Solid Passive Income Source? Real Estate to turn that into a Reality for you
Isn’t it always a good idea to make a little extra pocket money? Making money outside your day job can increase your net worth and provide you with extra peace of mind. Perhaps you’ve heard of passive income and how real estate is a prominent way to generate it. Here are a few things you should know about using real estate as a source of passive income. Many people mix up the terms real estate investing and passive income. Real estate can be considered a form of passive investing, but not always in the ways that investors believe. Passive real estate investing is the most effective way to put your money to work for you. But, before we get into the specific advantages of passive real estate investing, we need to define it and, more importantly, explain how and why it differs from active real estate investing. At the very least, the investor in this scenario must choose the property to purchase and then collaborate with a property management company to make frequent decisions about which tenants to accept, whether to repair or replace a broken water heater and when to re-carpet or paint the property. So, what exactly do we mean by passive income and passive real estate investing? What is Passive Income? Passive income is a partially automated income stream. You make an initial capital investments, usually in the form of a stock, mutual fund, or other equity-based vehicles, passive income, and then obtain an ownership stake in that investment, from which you receive dividends or other regular income. What is Passive Income Real Estate? Passive real estate investing is a type in which you put your money into a real estate project for which you will have no sole responsibility. Yet, generate income. Thus, passive real estate investing is a type in which you put your money into a project for which you will have no sole responsibility. You can invest in real estate passively in several ways, including purchasing stock in publicly traded real estate-related businesses. Real estate development firms, large real estate brokers, and construction firms are examples of these. Real Estate Investment Trusts (REITs) are companies that pool investors’ capital to invest in large real estate deals. And, with the emergence of real estate crowdfunding, you can now involve direct investments in individual real estate deals, consolidating your capital with other investors in equity or debt-based investments, while reaping the benefits of passive real estate investing. How to invest in Real Estate for Passive Income Passive Income can be an excellent way to bolster your current income and create financial streams to assist you in securing your retirement years. Rental properties are one of the most common way to produce real estate passive income. Investors who perform their cards correctly can generate a consistent income from the rental income while also improving the property and building equity. There is a widespread misconception that passive income real estate investing necessitates little to no effort. On the other hand, those looking to produce passive income from the real estate should take an active role in what should get treated as a business. Owning passive income properties does necessitate some level of involvement, whether it is searching for properties, vetting tenants, employing a property manager, or tackling repairs. How can you invest in Real Estate for Passive Income? Investors can obtain passive income via real estate by investing through fractional ownership, REITs, real estate crowdfunding, and real estate syndication. Fractional Ownership: A commercial real estate structure with fractional ownership is an investment structure in which may retail investor’s pool their capital to buy real estate properties. Investors get to be landowners of a piece of property based on their investments and the number of investments they make. The risks and rewards get shared by all investors. It is best suited for an individual investor who cannot afford to pay for and invest in the entire property. As a result, investors can purchase to stake in a high-end business or office building. Individual investors are beginning to see it as a viable investment option. You can now co-own that office space via fractional ownership by investing a small amount and receiving annual rental returns of 6% to 10%. Real Estate Syndications: Real Estate Syndications, unlike REITs, do not involve investing in a fund; rather, you purchase a particular real estate property and become an owner of the asset. As a passive real estate investor, you have more opportunities to increase your tax benefits as the owner of the real estate asset. In overview, a real estate syndication, locates a deal, coordinates the transaction and financing, and handles the investment once it is completed. Passive investors contribute the majority of the capital needed in exchange for real estate equity. When you invest in a real estate syndication, you know exactly where you are investing, what asset you are investing in, and, most importantly, who are you investing with. This allows you to accurately underwrite the opportunity and communicate directly with your sponsorship team throughout your investment. Real Estate Crowdfunding: Crowdfunding is another option. Real estate crowdfunding, like syndications, involves a large number of individuals combining their capital to buy a property. To reach potential investors, real estate crowdfunding makes use of the internet and social media platforms. Many people choose real estate crowdfunding because it does not require a large investment to get started. You can start with as few as Rs.25 lacs. REITs: Investing in REITs is the simplest way to obtain passive income in real estate. REITs are similar to mutual funds in that investors purchase shares, contribute money, and receive a monetary value in return. Most REITs are publicly listed investment opportunities that can be found on major stock exchanges, enabling you to buy and sell them quickly online. REITs will return at least 90 percent of their earnings to shareholders in dividends, and they,
Top 5 Indicators of a Good Commercial Office Space Investment
Evaluating the commercial office space market is the first step in developing a strong commercial real estate portfolio. When looking for office space to invest in, there are a few things to bear in mind. Investing in commercial real estate provides several advantages. Whatever asset you are considering, commercial real estate provides unrivaled stability and growth among modern investment possibilities. Commercial real estate will always be a rising route because new firms emerge all the time, and their needs expand in tandem. Whether it’s for supply and logistics support via warehouses, growing production via assembly lines, or extending corporate presence via offices, the demand for greater space is always there in the corporate sector, much more so than in the residential one. 5 Indicators of a Good Commercial Office Space Investment It is not a given that an office space accessible anyplace is always a good investment option. A commercial real estate office space investment might make or break your portfolio depending on where the asset is, how the market demand is, and the type of rentals in the location. Bearing this in mind, let us look at the top 5 factors to consider while looking for an investment opportunity The Asset’s age: Although old is gold, this is not always the case. Older office buildings are more difficult to maintain and might incur significant repair and upkeep costs. These can cut into your profits. Exiting a commercial real estate investment is much more difficult, so you don’t want to lock up your assets with a property that requires maintenance and care regularly. Older assets will also be less profitable for clients since they cannot accommodate numerous new features. Location: The location of commercial office space is quite important depending on the tenant’s company. While headquarters’ or corporate offices favor cities’ Central Business Districts, alternative locations may be available based on other businesses in the region. MNCs and bigger firms, in general, want modern facilities and structures that can expand well. Builder: Larger builders have access to superior plans, designs, and expertise, all of which contribute to the creation of some of the most interesting workplaces, whether for a single firm or as a co-working space. Keeping track of who is in charge of the building’s construction and design can help you determine the kind of tenants you may expect in the long run. Aesthetics: This aspect is related to the builder as well as the assets location. Designer spaces are frequently influenced by adjacent structures and demographics. In a neighborhood dominated by traditional architecture, you’d be hard-pressed to discover minimalist or industrial interiors. There may be exceptions, but they do not constitute the norm. Leases & Rents: The market’s average going rent, vacancy rate, and lease term length will be the norm for any new office space that opens. It is not advisable to expect any significant appreciation in contrast to market opinion. If you want to invest in assets that are becoming available in the region, you need first learn about the market. It is also worth noting that the addition of any key connecting route to any location would assist enhance appreciation in a very short period. Conclusion Keeping the mentioned tips in mind will allow you to search for better office space investment alternatives and narrow down your selections more efficiently. If you are seeking Grade A properties in the office sector for investment, choosing fractional ownership through Asset Yantra & Gak Group will allow you to get started on creating your commercial real estate portfolio quickly. Asset Yantra is India’s premier and preeminent commercial real estate investment organization, with a presence in the cities. It provides a full range of tailored and end-to-end commercial investments and advisory services to its clients, backed by its experience in real estate and market information. It allows you to invest in commercial real estate via fractional ownership starting at Rs.25 lacs. IRRs range from 14 to 21%. To learn more about how we may assist you with your commercial real estate investing journey, please click on the link above. Top 5 Indicators of a Good Commercial Office Space Investment FAQs Is a commercial office a good investment? Purchasing a commercial office space is a wise investment. Commercial workplaces are in high demand as more individuals invest in their enterprises for the sense of security they bring. The future of commercial real estate is bright. What type of commercial property is most profitable? Properties with the greatest potential for return on investment are often those with the greatest number of renters. Multifamily complexes, student housing, office space, self-storage facilities, and mixed-use are examples of commercial real estate properties.
The Clear Difference between Retirement Planning Investment & Savings Account
The majority of individuals, particularly rookie investors, confuse saving and retirement planning investments. However, they are 2 completely separate things with distinct objectives and duties in your financial plan and balance sheet. Make sure you understand this key notion before you start your road prosperity and financial independence. One of the most important parts of a solid financial plan is saving & investing money in the appropriate places. The definitions or meanings of saving and investment overlap to a large extent for the average investor. Investing is the process of placing money into market – linked assets such as shares and bonds. Saving, on the other hand, is investing in low–risk, non-linked products such as life insurance savings plans, PPF, fixed deposits, and so on. Investment vs Saving Here’s a rundown of some more distinctions between the 2. Duration Savings money is normally set aside for a short period. They might include everything from taking a trip to setting up an emergency fund. Money is frequently used in the short term to bring immediate enjoyment to the person. The money saved might also be utilized to cover unexpected bills. If you’re having trouble building a savings habit, talk to your life insurance provider about starting a money-saving plan. Risk The money saved is invested in areas that pay the bare minimum or return on the risk-free rate. As a result, the odds of losing your money are quite slim. The majority of individuals save to build an emergency fund that will come in help during difficult times. Investing entails a certain amount of risk. When compared to investing in stocks of smaller firms, the risk of investing just in the top stocks is substantially reduced. You should avoid putting your money into shady schemes such as chit funds or pyramid scams. Returns In India, life insurance firms provide a sort of money-saving plan that guarantees returns and is an excellent way to save. After the savings policy matures, it becomes a monthly income plan. Remember that if you want to generate a bigger monthly income from these plans, you’ll have to pay more premiums for a longer length of time. Investing yields a wide range of results. If you can select high-quality stocks at reasonable costs, you are likely to make a good profit. Liquidity Because the savings money is kept in conveniently accessible accounts, it is quite liquid. Because most savings accounts also serve as an emergency fund, you’ll want to keep your money in a place where it’s easy to get to without having to go through hoops. In investing, however, this is not the case. The majority of individuals put their money into investments to make a reasonable profit. There’s also a good chance you’ll lose a lot of money if you use terrible investment tactics. Why is it crucial to have good saving & investment habits? Although there are many differences between saving and investing, they both serve the same purpose. Saving and investing are commonly used to build a corpus will assist you during your retirement years. The practice of saving drives you to set aside money for unexpected expenses. Which is more beneficial: Saving or Investing? Investing and saving are not mutually incompatible activities. You must first save money before you can invest. The money you make from investing should be put into a retirement savings account. As a result, before you can begin your quest to generate generational wealth, you must first develop a fantastic saving habit. First and foremost, you must establish an emergency fund. You’ll need to accumulate enough money to cover 6 months’ worth of spending to start an emergency fund. After you’ve established the fund, the following stage is to choose your short & long-term objectives. Then, depending on your demands, you’ll have to modify your investments and savings ratio. If you are looking for an investment partner, then Asset Yantra & Gak Group may be your ideal option. With an IRR of 14-21% and investments in Top Indian Cities such as Bangalore, Chennai, and Hyderabad, Investments with asset Yantra & Gak Group are your best bet! Difference between Retirement Planning Investment & Savings Account FAQs What is the difference between a savings account and an investment? Savings differs from investing in that it is frequently put into a bank savings account or a fixed deposit. Investing, on the other hand, is purchasing assets with the potential to appreciate over time, such as real estate, gold, stocks, or mutual fund shares. What are 3 types of retirement investment plans? Some of the retirement investment plans in India include Employment – Based Pension Plans, Insurance – Based Pension Plans, Government – Sponsored Schemes, and Real Estate Investment Plans.
Understand what it takes to Refinance Real Estate Investment Property
When you own an investment property, the ultimate goal is to earn a substantial rate of return. If you find your return after several years of ownership is not what you expected. You may probably decide to refinance real estate investment property. Refinancing a property can be a very beneficial investment strategy especially, for a property investor. Therefore, whether you own half a dozen rental properties of you’re a first-time real estate investor. It’s essential to understand what it takes while refinancing an investment property. There are several steps you should consider before qualifying for a refinance. In this article, you will learn as an investor on how to comprehend the purpose of refinancing and how to weigh the risks versus rewards. When do you need to refinance your Investment Property? Lower Monthly Mortgage Payment One of the main reasons investors intend to refinance their properties is to lower the interest rate on the loan interest. The satisfaction of this, the monthly mortgage payments will be reduced. Leaving you with more money in your pocket each month. This money that you saved can be used or invested somewhere else. Purchase New Investment Properties Another reason for refinancing is taking out the Equity in your investment property to buy additional properties. It allows you to use the money to fund other investment opportunities or upgrade a current investment property with the changing pace. Pay off Your Loan Faster By refinancing the current capital. An investor can pay off the loan at a faster rate. Thereby enabling the investors to get a loan with better terms. An investor can also negotiate a mortgage with less money down or a loan with a longer or shorter term. Depending on their needs through refinancing. How can you refinance your Investment Property? Determine how much Equity you have Before learning how to refinance a property, you need to know how much property you have already managed to build up. As per facts, developers or any financial institutions typically require a cushion of 25% or more to refinance a loan secured by a non-owner-occupied house. Determine the Value of the Property you owned Determining the value of the investments is crucial for a qualified refinancing. It helps investors to get on with better terms. You can determine the value of the property by either: Referring to online, for instance, if you own any commonly traded investment, such as a condo, single-family, etc., You can refer to the reputed sites online for conducting a search in the area for the determination of the value of the property. You can also seek a broker’s opinion; if you own an investment that is difficult for the self-appraisal, such mixed-use property. You can contact a local realtor and seek the broker’s price opinion. Acquaint yourself with the Mortgage Rules Acquainting yourself with the mortgage rules can help in negotiation and deciding on the loan terms. Knowing the loan-to-value ratio (LTV) can help while refinancing. It is the mortgage amount divided by the appraised value of the property. Showing developers or the financial institutions how much Equity you own. Once you set the property’s value, you can compare it to the current mortgage rate to determine the general LTV range. On calculating, if you find the value of the property ranges between 50% and 80%. You can proceed to the further steps for refinancing. Choosing the Right Financial Institutions or Any Real Estate Platforms For this, you need to reach out to any financial institutions or real estate agents and request quotes. Different developers or financial institutions have different requirements and terms for the investments, making it necessary to shop around. You need to get at least three quotes from different developers or the funding institutions. You will also need to request rates for at least 15 or 30 years on either a fixed mortgage or adjustable-rate mortgages. In addition to the rates, you need to review the aspects like the length of the ownership, closing costs, credit score, and timeframe for receiving the loan, etc. Regarding this, an investor will be required to showcase some of the documents about refinancing an asset. Such types of propositions include proof of personal and rental income, proof of assets owned, proof of any individual ownership, references relating to any debts and obligations, and a copy of the property appraisal if any. Do the Break-Even Calculation Before refinancing any property, you should calculate and analyze the break-even point of the transaction. It would help if you were sure that the investment property refinances rates are lower than the purchase cost of the asset being made initially. For calculating the break-even point, you need to consider all the upfront costs of the refinancing loan with any closing costs plus any other costs and estimate how much you can save each month. Comparing, you can determine how much time you will take before you reach break-even and begin to save money. Refinancing After receiving several quotes, it’s time to choose the suitable financial institutions or the right estate platforms for refinancing your investment properties. However, these financial institutions may further process some of the documents relevant while loan sanctioning and might include statements about tax returns, financial statements, mortgage statements, etc., for loan approval. Pass of Loan Approval Once you’ve done with the process of applying, the financial institutions or any other developers where you have applied will review the loan application, thereby passing the order for the appraisal of your investments, if satisfied. Also, if the finances look good and your investment properties appraise, you can schedule a closing loan, at last. Benefits of Refinancing Real Estate Investment Property Changing the type of interest Refinancing and investment is highly advantageous for an investor. It allows investors to switch from a variable interest rate to a fixed rate of interest. As seen, Interest able
Highlights of the Union Budget 2023-2024
Union Budget 2023-2024 maintained its focus on 7 key areas. Saptrishi has said by Finance Minister Nirmala Sitaraman. The middle class has also received some respite in the form of adjustments to the new income tax scheme. The Finance Minister also adhered to the fiscal deficit path in the budget. With a goal of 5.9% in FY 2024 and a goal for the current fiscal year. Key Highlights of the Union Budget 2023-2024 The highly anticipated Union Budget 2023 has arrived, bringing good news for taxpayers with new income tax slabs, and infra boost, a focus on youth development, and a push for green energy. Asset Yantra breaks down the key takeaways for you. Economic Growth is expected to be at 7%, the highest among major economies. Capital Expenditure increased 33% to Rs.10 lakh crore (3.3% of GDP) New Personal Income Tax Slabs: tax rebate limit raised to 7 lakhs from 5 lakhs Agriculture Accelerator Fund to boost startup in Agri sector. 20 lakh crore credit target for animal husbandry, fisheries, and dairy. 50 New Airports, Helipads, and Aerodrones to be made for improved air connectivity. MSME Updates: Infusion of 9000 crores in corpus| Collateral-free credit of 2 Lakh Crore| Cost of credit reduced by 1%. The Centre will borrow 15.43 lakh crore from the markets to finance its fiscal deficit of 5.9%. Direct Benefits Transfer (DBT) will be rolled out to provide stipends to 47 lakhs youth in 3 years. Scope of Services in Digi locker to be expanded for the Fintech sector 3 Centers of Excellence for “Artificial Intelligence” will be set up. Pan Card to be made the single business identity. 10,000 crores for urban infra fund every year managed by NHB. 75,000 crore for 100 transport infra projects. Key Numbers of the Union Budget 2023-2024 Here are the Key Numbers that highlight the targets of the 2023 budget. FY23 growth estimated at 7%. FY23 divestment target revised to 50,000 crore. FY24 food subsidy seen at 97 lakh crore. FY24 fertilizer subsidy seen at 75 lakh crore. FY24 divestment target at 51000 crore. FY24 capital expenditure proposed at 10 lakh crore, up 33%. Agri credit target increased to 20 lakh crore. PM Awas Yojana outlay by 66% to 79000 crore. 35000 crore investment planned in energy security, energy transition. Green Hydrogen Mission aims for an output of 5MMT by 2030.11 Sugar cooperatives to get the benefit of 10000 crore. Import tax on compounded rubber upped to 25% from 10%. Custom duty on cigarettes raised by 16%. 7 Priorities of the Union Budget 2023-2024: Inclusive Development: STs, SCs, OBCs, Women, and other underprivileged groups have benefited from the government’s Sabka Saath Sabka Vikas strategy. Reaching the last mile: The government launched the Aspirational Blocks project. The Aspirational Blocks Program covers 500 blocks. It aims to increase the availability of critical government services in areas. Like health, nutrition, education, agriculture, water resources, financial inclusion, and basic infrastructure. Infrastructure & Investment: The capital expenditure is being boosted by 33% to Rs.10 lakh crore, or 3.3% of GDP. Unleashing the potential: A National Data Governance Policy will be developed, allowing startups & academics access to anonymized data in order to spur innovation and research. Green Growth: The Ministry of Petroleum and Natural Gas proposes a capital investment of Rs.35,000 crore in energy transition, net zero, and energy security. Youth Power: The PM Kaushal Vikas Yojana 4.0 will be launched to train lakhs of youth. The program will include new-age classes. Financial Sector; The overhaul initiatives would go into effect in 2023, thanks to an investment of Rs.9,000 crore into the corpus. What got cheaper and what got expensive of the Union Budget 2023-2024: What got cheaper? Customs tax on components of open cells in TV panels has been reduced to 2.5%. The government intends to lower customs duties on some inputs for mobile phone production. The government plans to lower the base tariff on seeds utilized in the manufacturing if diamonds grown in the lab. It will also reduce customs taxes on shrimp feeding to stimulate exports. What got Expensive? Cigarette taxes have been raised by 16%. The basic import tariff on compounded rubber was raised from 10% to 25%. The basic customs tax on products created from gold bars has gotten raised. The customs tax on kitchen electric chimneys has gotten raised from 7.5% to 15%. Highlights of the Union Budget 2023-2024: Tax The New Personal Income Tax Regime was implemented in 2020, with 6 income slabs beginning at Rs.2.5 lacs. So there were 6 income levels beginning at 2.5 lacs. However, the tax slabs have been decreased and the ceiling has been lifted to 3 lacs. Income Brackets Tax Rate 0 lacs to 3 lacs 0 percent 3 lacs to 6 lacs 5 percent 6 lacs to 9 lacs 10 percent 9 lacs to 12 lacs 15 percent 12 lacs to 15 lacs 20 percent 15 lacs above 30 percent So, an individual with an annual salary of Rs.9 lacs will have to pay only Rs.45000 in taxes. So, it is 5% of his income or a 25% drop from the Rs.60000 he was previously paying. Direct Taxes of the Union Budget 2023-2024 The government proposes capping gains deductions on residential property investments at Rs.10 crore. A person earning Rs.9 lakh will pay just Rs.45000 in taxes. A person earning Rs.15 lacs will have to pay Rs.1.5 lakh in tax, down from Rs.1.87 lacs per the new tax system. Zero tax on income up till Rs.3 lacs; 5% tax on income between Rs.3 lakh and Rs.6 lakh; 30 percent tax on income over Rs.15 lacs under the new I-T regime. Under the new regime, taxpayers can claim a standard deduction of Rs.50000/-. But they are not eligible for exemptions or deductions on their assets. Agniveers planned to be tax-free for payments received from the Agniveer Corpus Fund. For online gaming, the government plans to impose TDS and taxation on net wins at the moment of
You Need to Buy Property to Invest in Real Estate: A Misconception or the Truth?
There are several myths regarding real estate investing that should not affect your decision to engage in the business. This is especially difficult if you are new to the game. It may be difficult to discern reality from fiction in the real estate sector. With numerous myths blooming from various holes. While certain misconceptions may appear to be innocuous, they might nonetheless prevent you from succeeding in real estate. Due to the market situation and political attention on real estate. The general public is frequently perplexed about the business. People who are unable to distinguish between myths and realities are prone to a variety of misunderstandings. Asset Yantra attempts to clarify the industry’s perplexing notions. Real Estate is frequently viewed with skepticism and contempt. Doubts and half-truths have spread several misunderstandings regarding this industry in the general public’s thinking. Asset Yantra examines the top 7 Myths regarding the real estate sector. Can you invest in real estate without investing in property? Real Estate Investment Trusts (REIT) A REIT is a specialized company that invests in commercial real estate through debt and equity. Introduced in 1960 to provide investors with the chance to participate in real estate as an asset class. REITs are recognized to provide a minimum 7-8% annual return to small & medium investors. According to the REIT requirements, at least 80% of the value must be invested in revenue-generating properties. With the remainder invested in under-construction projects. Wholesale Real Estate Real Estate wholesaling is an excellent option for people to get started in the real estate sector without investing a lot of money. It is a type of property flipping in which the investor, also known as wholesaler, agrees to purchase a property that they feel in underpriced. The wholesaler gets money through a charge tied to the transaction, which is generally a percentage of the total property cost. Mutual Funds for Real Estate Real estate mutual funds are an excellent strategy to diversify your real estate portfolio. The principle is similar to that of a mutual fund in that the investor owns a piece of the mutual fund while the corporation owns the investment. Earnings are distributed in the form of a dividend or a portion of share appreciation. Platforms for Online Investing Online real estate investment platforms aggregate funds from several individuals and invest on their behalf in possibilities that would otherwise be too expensive to pursue. The medium, on the other hand, is best suited for people who can afford to leave their assets unbroken for a lengthy period. Loans made with hard money A hard money loan is a loan made by a person for a real estate investment. Hard money loans, often known as bridge loans, are short-term loans used to fund an investment project. Typically, the lender lends up to 65-75% of the property’s value and receives interest, which is often greater than on traditional property loans. Myth vs Facts in Real Estate Real estate investment may be both exciting and complicated for first-time investors. Even after significant investigation, it is difficult to separate the truth from the false material that circulates on the internet. Here are a few typical fallacies to avoid as a real estate investor. Myth: Developers purposefully postpone projects Fact: One of the most prevalent concerns consumers have about the real estate market is that projects are being delayed. Distressed customers frequently claim that developers purposefully delay developments to increase profits. “Developers never postpone projects by choice,” says Rohit Gera, MD of Gera Developments. The efficiency of urban municipal and civic agencies. Which manage constraints on project development through approvals, has a significant impact on the process of real estate construction in India. Development projects in Indian cities are subject to a lengthy clearance procedure. Which typically takes 24-36 months before construction & 6 months to a year after completion. Myth: Your purchasing choice should be influenced by market conditions Fact: While the assertion is largely fair, many first-time investors do not consider their affordability before making a purchase selection. When people can afford it, they should enter the market. If you secure a house loan early in life, you will be able to purchase your home sooner than those who wait. Using one can aid you in assessing your present financial health by reviewing your current income, existing assets, obligations such as other debts, insurance, investments, and house purchase plans. Myth: Real estate investing is exceedingly dangerous Fact: The real estate market is frequently seen as exceedingly dangerous. The current state of the market, with delayed projects, sluggish demand, and rising prices, does not assist to validate the fallacy. Real estate investments reach their full potential when kept for an extended period. Short-term real estate investments are more likely to result in losses. “The wise thing to do is to take measured risks and keep onto investments for a longer length of time,” Rohit Gera says. Myth: Real estate is always profitable Fact: On the other hand, some people think that property values constantly rise and the real estate investments should always provide big returns. While the property does not lose value over time, making a limitless profit is not a realistic expectation. Real estate prices and profits fluctuate as well, and there have been cases where values have plummeted owing to a lack of demand. Myth: Big brands always provide the greatest results. Fact: According to experts, it has emerged as the most common misperception in the real estate market, since major companies have failed to meet their claims of quality and timely delivery. On the other hand, there are many mid-and small – scale developers that are devoted to delivering the best in terms of quality and amenities. Myth: Developers want prices to continue to rise Fact: Constantly growing prices
Financial Goals for Real Estate Investments in Your 40s
The term Financial Goals has a noble connotation to it. Goal-setters get seen as overachievers. And many believe that individuals who set goals are superior to whose do not. Goals sometimes are regarded as dangerous or unreachable. However, a goal might be as simple as telling yourself that you would clean the dishes before going to bed every night this week. The problem with imbuing the term “goal” with such power is that it makes the concept of goal setting something so daunting that no one wants to try it. If we can all begin to see goals for what they are. A simple indicator progress, a higher percentage of individuals will prioritize goal creation. The 40s are a watershed moment in a person’s financial life. It, like every other stage of the life-cycle, has its set of possibilities and obstacles. Most individuals hit the finance tipping point in their 40s. With their income increasing and spending levelling off. Which real estate goals will help your bottom line the most as an investor, and how will you achieve them effectively and efficiently? What are the Financial Goals for Real Estate? Did you know that firms that set specific goals are 10 times more likely to succeed than those that do not? According to a recent Harvard Business School research, 83% of the population does not establish objectives, and of those that do, 92% fail to fulfil them. First & foremost, why are so few individuals creating goals? Second, why aren’t more individuals succeeding in achieving their goals? The explanation for this is simple: most individuals do not create SMART goals. SMART is acronymous for Specific, Measurable, Attainable, Relevant, and Time-Bound. S.M.A.R.T. is an acronym that may help you define goals for your real estate investments. Fantasizing about your hopes and dreams is not the same as taking the time to sit down, put pen to paper, and create realistic goals. What are the SMART real estate financial goals? SPECIFIC real estate goal: Every real estate goal you set should be as SPECIFIC as possible. Define each phrase inside the goal and provide concrete activities to take next. According to the same Harvard Business School study, writing down your goals increases your chances of achieving them by 14%. So why not go the additional mile to give yourself an advantage? MEASURABLE real estate goal: MEASURABLE goals will keep you motivated by allowing you to measure you progress. You’ll be to judge how much you’ve progressed and how much work still needs to get done if you define objectives using metrics and KPIs. ATTAINABLE real estate goal: People sometimes have real estate goals that are unattainable. The objectives you set should be hard enough to drive you to your limits and drain your resources, yet achievable. RELEVANT real estate goal: Setting appropriate goals entails ensuring that stated targets are relevant to the present condition of your company operations. Establishing that you want to be the CEO of a Commercial real estate business someday while continuing part-time wholesaling properties in your local market to pay the bills qualifies irrelevant. TIME-BOUND real estate goal: The final step is simple: set a timeframe for your goals. It is one thing to declare you want to better your real estate education this year. It is quite another to commit to attending a networking event, club meeting, or industry conference twice a month for the next 6 months. Real Estate Goals that you can set Portfolio Diversification: For inexperienced investors, diversifying your portfolio may appear to be a real estate aim. A prevalent misconception is that single home investment is a secure and reliable strategy to assets protected. In reality, the inverse is true. The fundamental reason for diversifying your real estate holdings is to lower risk. Networking: Building & expanding your network should be a continuing real estate aim not only for 2023 but for the rest of your career. When you consider expanding your network as a continuous real estate objective, you will find yourself with not just a large number of contacts but also higher-quality relationships. Conclusion The best method to achieve long-term success in real estate is to set smart goals. As a result, the next time you find yourself daydreaming about a financially free future, take a pen and paper and jot down your goals. However, simply writing down your objectives is not enough. You must also ensure that each goal you create is SPECIFIC, MEASURABLE, ATTAINABLE, RELEVANT, & TIME-BOUND. Asset Yantra is an online investing platform that offers real estate investment advice in major Indian cities such as Bangalore, Hyderabad, and Chennai. Asset Yantra provides secure investment opportunities and rewarding properties in terms of financial appreciation and a better lifestyle. Also Visit another website of ours for investment i.e., Gak Group Financial Goals for Real Estate Investments in Your 40s FAQs How should your finances look in your 40s? According to financial advisers, you should have 3 times your salary in retirement savings by the time you reach the age of 40. So, if you make Rs.44 lacs each year, you should have a total of Rs.1 crore in your retirement-related accounts. How do you build wealth in real estate? One can build wealth in real estate by investing in the following: Rental Property Commercial Real Estate House Ownership House Flipping Partnerships Distressed Sale
4 Top Reasons to Invest in Real Estate
Passive Income, Equity, Monthly rents, Tax breaks. These are some of the benefits that come with investing in Real Estate. But while investing in apartment buildings, commercial properties and single-family homes can bring extra income each month and big paydays. It also comes with risk. The goal is to invest in properties that increase in value over time. If you understand the risks and are willing to do the research, finding the best places to invest in real estate could provide you with a solid income boost. What is Real Estate Investing? You have plenty of options when it comes to investing in real estate. You can purchase a single family home, rent it out and collect monthly rent checks while waiting for its value to rise. You can go bigger and invest in an apartment building with dozens of units, collecting a steady stream of rent checks from your tenants each month. The key is to do your research to find out which type of real estate investing is the best fit. REITs Real Estate Investment Trust (REIT) is a company that’s owns, operates or finances income-producing real estate. REITs allows anyone to invest in portions of real estate assets the same way they invest in other industries. Through the purchase of individual company stock or through a mutual fund or exchange traded fund (ETF). Residential Properties Residential Property is any building or unit zoned and purposed as living space. It’s one of two general categories of real estate, the other being commercial property. Residential property is usually owner-occupied, but not necessarily. Commercial Properties Commercial Property refers to immovable property used for industry. Commercial property typically refers to a building that house businesses. Land that is intended to make a profit, and larger residential rental properties. House Flipping Investors who want to make money quickly often turn to house flipping. House flipping is a form of direct real estate investment and can be done in a variety of ways. 4 Top Reasons to Invest in Real Estate Now There are 4 Top reasons to invest in Real Estate, they are as follows: The Potential for Long-Term Appreciation: Real Estate has the potential to appreciate in value over time, especially in areas with strong economic growth. This can provide a significant return on investment for those who are willing to hold on to their property for the long-term. It can be measured through the change in the price of a property from one period to another. For example, if a property was bought for $100,000 and is now worth $120,000, it has appreciated by $20,000. Historical real estate appreciation charts help show economists and analysts how property values have changed over time. RE, especially in urban areas, is bound to appreciate due to scarcity of land. It is said that the longer you stay invested in real estate, the more money you make. If you’re buying real estate as an investment, consider investing in high growth potential locations to maximize your returns. 2. Cash Flow: Renting out a property can provide a steady stream of passive income. This can help to offset the costs of owning the property & provide a source of income that can be used to fund other investments. Cash flow is the net income from a real estate investment after mortgage payments and operating expenses are covered. Real estate provides a considerable ability to generate cash flow. A steady monthly rental income is an excellent incentive of passive income and offers long term financial security to the investor. In many cases, cash flow only strengthens over time as you pay down your mortgage – and build up your equity. 3. Tax Benefits: Owning real estate can provide significant tax benefits, such as deductions for mortgage interest and depreciation. These deductions can help to lower the overall cost of ownership, making real estate a more attractive investment option. Tax deductions on Real Estate can offset income and reduce overall taxes. There is no self-employment tax on rental income. At the same time, the government offers tax breaks for property depreciation, insurance, maintenance and repair expenses, legal fees and even interest paid on mortgage. RE investors get lower tax rates for their long term investments. Reasonable costs are owning, operating and managing property are easily deductible. 4. Diversification: Investing in real estate can provide diversification in your portfolio, reducing your overall risk. Real Estate investments are often uncorrelated with the stock market, which can help to insulate your portfolio from market fluctuations. Many people never invest, and the ones who do rarely venture from the stock market. Perhaps this goes without saying, but the most successful investor is always the most diversified, as well. It doesn’t matter if you are an accredited or non-accredited investor, you can still invest in this asset class. It’s no coincidence that those who diversify have the most chances at success long-term. Conclusion RE investors make money through rental income, appreciation, and profits generated by business activities that depend on the property. The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage. Real estate investment trusts (REITs) offer a way to invest in real estate without having to own, operate, or finance properties. Asset Yantra is an established Indian real estate investing website that offers opportunities in Chennai, Hyderabad, and Bangalore. Also Visit: Gak Group for making investments. Gak Group is a well-known real estate investing platform in India that offers chances in Chennai, Hyderabad, and Bangalore.
Boost in demand for real estate in suburban areas of Hyderabad
Hyderabad’s suburbs have recently witnessed an increase in the rates of real estate properties. Places like the Jubilee Hills, Gachibowli, Nizampet, Kondapur, and Madhapur are also in the same situation. Also areas like Gopanally, Manikoda, and Narsingi are facing increased demand due to the rise in prices of real estate. Knight Frank has observed an increase in demand for real estate in Hyderabad’s neighboring areas. The study featured a rise in real estate sales from Hyderabad’s four residential marketing districts, including Hyderabad, Medchal – Malkajgiri, Rangareddy, and Sangareddy. Further estimated reports of registration According to an analysis of home sales registrations, the Medchal-Malkajgiri district comes out on top with 44%, trailed by the Rangareddy district with 38%. In contrast, the Hyderabad district accounts for only 14% of overall registrations. According to Knight Frank India, 5,181 pieces of real estate property were registered in Hyderabad in August. Participation and demand appeared to be declining when the month recognized as Ashada Maasdam began. Expected plot registrations in August were Rs.2,658 crore, representing a 26% rise from the previous month. The present situation of commercial real estate in Hyderabad Since the outbreak, there has been a rise in demand for huge ticket-sized homes. The bulk of registrations was for plots ranging in size from 1,000 to 2,000 sq.ft. It is well known that perhaps the economy is currently experiencing inflation. Despite all of the economic and external issues such as underemployment, interest rates, taxation, and so on, the rise in real estate prices in Hyderabad’s suburbs is extremely remarkable. Demand across popular cities of the Indian market According to a Reuter’s survey of property specialists, real estate prices in India were predicted to rise 7.5 percent on a pan-India scale this year, the quickest gain in 5 years. The average house price is expected to grow by 6% the following year and 6% in 2024. The survey of 13 real estate analysts was conducted from May 11 to May 27. In a March survey, experts predicted a 5.0% growth rate for this year. Costs in Mumbai and Delhi, along with the bordering National Capital Region, are predicted to grow by around 4% and 5% this season and next, according to a Reuter’s poll. Rates in Bengaluru, as well as Chennai, are expected to grow by 5.5% – 6.6% over the following 2 years. “The Indian marketplace has profited greatly from cheap lending rates over the previous two years”. This policy rate increase will result in increased EMIs for house loans. Yet, we believe that better purchaser attitudes, a desire for home ownership, and solid income growth will keep the housing market afloat. “The stance of monetary policy remains supportive, and with the epidemic fading and economic development. We expect consumer demand to continue healthy in the short term,” Gulam Zia said. Is this the perfect time for real estate investment? Yes, it is a perfect time to invest in commercial real estate as the industry is witnessing a surge in demand across various key cities in the country. Fractional ownership can be one of the best ways for new investors to make investments in the real estate industry. Making investments can also be very easy and simple with the help of innovative investment solutions offered by Asset Yantra. You can check out the website for more details on alternative investments and much more! Also Visit: Gak Group for making investments. Gak Group is well-known real estate investing platform in India that offers chances in Chennai, Hyderabad, and Bangalore.
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