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Co-working Space Investment

Is Co-working Space Investment Worth Giving a Chance?

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    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

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9 Most Common Mistakes

9 Most Common Mistakes Made by Investors

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    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

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Course of an Investment

What to Except Throughout the Course of an Investment

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    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’).

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Tax on Rental Income

Tax on Rental Income: How to File & Claim to save Rental Income Tax

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    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

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Commercial Real Estate Trends and Insights

Commercial Real Estate Trends & Insights

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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

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6 Reasons Why Investing In Fractional Property Ownership is the Best Retirement Plan

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    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.

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Investment Management Company

Everything you need to know about Investment management companies in India

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    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

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How to Create a Tax-Smart Portfolio with NRI Real Estate Investments

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    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

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REITs A Promising Income Solution in an Inflationary Environment

REITs: A Promising Income Solution in an Inflationary Environment

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    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.

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9 Investment Habits to Develop for High Passive Income

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     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

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