Real Estate Investment

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

Leave a Comment / Real Estate Investment, Uncategorized /

    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

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

Banking Details for NRI

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

Leave a Comment / Real Estate Investment, Uncategorized /

    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 –

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

Real Estate Crowdfunding

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

Leave a Comment / Real Estate Investment, Uncategorized /

    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

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

Solid Passive Income

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

Leave a Comment / Real Estate Investment, Uncategorized /

    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,

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

Real Estate Investment Property

Understand what it takes to Refinance Real Estate Investment Property

Leave a Comment / Investment, Real Estate Investment /

    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

Understand what it takes to Refinance Real Estate Investment Property Read More »

You Need To Buy Property To Invest In Real Estate A Misconception Or The Truth

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

Leave a Comment / Investment, Real Estate Investment /

      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

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

Financial Goals For Real Estate Investments In Your 40s

Financial Goals for Real Estate Investments in Your 40s

Leave a Comment / Investment, Real Estate Investment /

      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

Financial Goals for Real Estate Investments in Your 40s Read More »

Top Reasons to invest in Real Estate

4 Top Reasons to Invest in Real Estate

Leave a Comment / Investment, Real Estate Investment /

   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.

4 Top Reasons to Invest in Real Estate Read More »

Demand For Real Estate in Hyderabad

Boost in demand for real estate in suburban areas of Hyderabad

Real Estate Investment /

       Hyderabad’s suburbs have recently witnessed an increase in the rates of real estate properties. Places like the Jubilee Hills, Gachibowli, Nizampet, Kondapur, and Madhapur are also in the same situation. Also areas like Gopanally, Manikoda, and Narsingi are facing increased demand due to the rise in prices of real estate.        Knight Frank has observed an increase in demand for real estate in Hyderabad’s neighboring areas. The study featured a rise in real estate sales from Hyderabad’s four residential marketing districts, including Hyderabad, Medchal – Malkajgiri, Rangareddy, and Sangareddy. Further estimated reports of registration      According to an analysis of home sales registrations, the Medchal-Malkajgiri district comes out on top with 44%, trailed by the Rangareddy district with 38%. In contrast, the Hyderabad district accounts for only 14% of overall registrations.      According to Knight Frank India, 5,181 pieces of real estate property were registered in Hyderabad in August. Participation and demand appeared to be declining when the month recognized as Ashada Maasdam began.      Expected plot registrations in August were Rs.2,658 crore, representing a 26% rise from the previous month. The present situation of commercial real estate in Hyderabad     Since the outbreak, there has been a rise in demand for huge ticket-sized homes. The bulk of registrations was for plots ranging in size from 1,000 to 2,000 sq.ft.     It is well known that perhaps the economy is currently experiencing inflation. Despite all of the economic and external issues such as underemployment, interest rates, taxation, and so on, the rise in real estate prices in Hyderabad’s suburbs is extremely remarkable. Demand across popular cities of the Indian market      According to a Reuter’s survey of property specialists, real estate prices in India were predicted to rise 7.5 percent on a pan-India scale this year, the quickest gain in 5 years. The average house price is expected to grow by 6% the following year and 6% in 2024. The survey of 13 real estate analysts was conducted from May 11 to May 27. In a March survey, experts predicted a 5.0% growth rate for this year.      Costs in Mumbai and Delhi, along with the bordering National Capital Region, are predicted to grow by around 4% and 5% this season and next, according to a Reuter’s poll. Rates in Bengaluru, as well as Chennai, are expected to grow by 5.5% – 6.6% over the following 2 years.     “The Indian marketplace has profited greatly from cheap lending rates over the previous two years”. This policy rate increase will result in increased EMIs for house loans. Yet, we believe that better purchaser attitudes, a desire for home ownership, and solid income growth will keep the housing market afloat. “The stance of monetary policy remains supportive, and with the epidemic fading and economic development. We expect consumer demand to continue healthy in the short term,” Gulam Zia said. Is this the perfect time for real estate investment?      Yes, it is a perfect time to invest in commercial real estate as the industry is witnessing a surge in demand across various key cities in the country. Fractional ownership can be one of the best ways for new investors to make investments in the real estate industry. Making investments can also be very easy and simple with the help of innovative investment solutions offered by Asset Yantra. You can check out the website for more details on alternative investments and much more! Also Visit: Gak Group for making investments. Gak Group is well-known real estate investing platform in India that offers chances in Chennai, Hyderabad, and Bangalore.

Boost in demand for real estate in suburban areas of Hyderabad Read More »