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All the Banking Details to know for NRI Investments in Indian Real Estate

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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 –

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Real Estate Crowdfunding: What is it and How It Works?

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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

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Dreaming of a Solid Passive Income Source? Real Estate to turn that into a Reality for you

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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,

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Top 5 Indicators of a Good Commercial Office Space Investment

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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.

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The Clear Difference between Retirement Planning Investment & Savings Account

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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.

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Understand what it takes to Refinance Real Estate Investment Property

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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

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Highlights of the Union Budget 2023-2024

You Need to Buy Property to Invest in Real Estate: A Misconception or the Truth?

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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

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Financial Goals for Real Estate Investments in Your 40s

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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

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4 Top Reasons to Invest in Real Estate

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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.

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