Real estate investment a Step to create additional cash flow

Real estate is one of best ways to create an additional cash flow into one’s bank.

According to financial wizard Robert Kiyosaki.
“Real estate investing in a small scale, remains a tried and true means of building an individual’s cash flow and wealth”.

Here's Ashish Sharma CEO of LiveUp Solutions Sharing his expert opinion

The rule of thumb in real estate investing is to put your money to work for you in order to make it grow. It is imperative to earn profit to offset the risks you take, cost of owning a real estate investment such as utilities and insurance and taxes you pay. The investor must understand the property cycle in order to identify the best entry point. Here are a few ways to that will help you to raise your financial standing through real estate investment.

1. Rental income

This is one of the major advantages of real estate investing the owner earns money through rent on a monthly basis which adds inflow of cash to your bank. Rental income from residential properties can earn 5-6% of income.

2. Tax deductions

In real estate investment there are number of tax benefits in form of deductions that reduce income, money spent for repairs, insurance and depreciation of rental properties the owner can claim tax benefits.

3.    Going commercial

A commercial property yield higher rental income compared to residential properties and has longer leasing periods compared to residential properties. According to experts commercial properties earn rental income anywhere between 10-12% and rental value increases with capital appreciation over time. Here are a few ways one can earn by going commercial.

• Service apartments

A residential property with all the amenities and basic facilities can be given on rent for a short period of time which earns a good income.

•   Paying guests

   Individuals usually students and working professionals stay in one house and pay rent for the occupancy the owner stays in one room and rent the other room.

• Offer pay and park services

In metropolitan cities parking spaces are hard to find this is another great way to earn income through your property generally around 20/- is charged per hour for a two wheeler and 30/- for a four wheeler and one can generate at least 4000 per day that would amount to 120000 per month which is a good deal in Bangalore parking spaces earn between 8-10%

• Franchisee

Franchisee is a legal agreement between the franchisor and a franchisee many big corporations seeing a lot of potential growth opportunities in India this has a lot of scope, one can earn good rental income through this and in addition to that you can ask for profit share from the franchisee which depends on your negotiation with the franchisee. 

•  Retailers

By allowing retailers to use your property space you can earn rental income can be an additional income apart from your monthly paycheck. It can include supermarkets, Toy shops, Electronic store, etc.

4.    Invest in a growing area

For investors looking to invest in properties it is always good to look for investing in a growing area compared to a well established as a growing area provides good deals and the investor can buy at a affordable price and will have greater capital appreciation in the future. The prices in well established area tend to become stagnant after a period of time.

To buy your dream home visit www.liveupindia.com