How to Earn Money from Real Estate Investments

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How to Earn Money from Real Estate Investments

No one can deny the fact that a real estate investment is one of the most lucrative methods to generate wealth. However, it isn’t as easy as buying property at a low rate and selling it when the market rises, making a fortune. There are way too many catastrophic stories of ill-informed people who have lost their savings getting lured by the idea of making a killing from real estate investment.

However, with the right market insights and an exhaustive understanding of the real estate market, it is very possible to earn money from this investment. With the Real Estate Regulation and Development Act (RERA), the Goods Services Tax (GST), simplification of FDI norms and other favourable regulations, there is increased transparency, enhanced consumer confidence, and increased capital inflow in India’s real estate sector. 

Here are a few ways to earn money from real estate investments: 

Short-term rentals

Until a little while ago, homeowners rented their properties for long periods of time and this was considered a great way to generate monthly incomes as a long-term investment. But in today’s day and age, with the rise of work-from-home culture and Airbnb redefining the way people let-out houses, getting short-term rentals from residential properties is where one can make quick and big money. One can expect a 10-20% return on investment, depending on the locality, demand, and other contributing aspects.

Vacation homes and homestays are also worthwhile when it comes to earning money through short-term rentals. By renting out your property for short periods of time to vacationers and travellers, there is enormous potential to earn a decent amount of passive income. Short-term rentals are a recommended way to earn money. 

Hold on to real estate assets.

Conventionally, real estate investments imply buying a home or an apartment and then putting it on rent. The idea was to build asset value over a period of time. This approach is still a very economically prudent one, provided you buy property in the right location. It is more economically wise to get an average home in a potential location than get a great home in a basic non-promising location. Long-term residential rentals centred around the buy-and-hold traditional concept naturally bring in about 10% of annual returns and is a relatively stress-free way of increasing wealth via real estate. In a place like Mumbai, especially, where people come over from all over to work, long-term rentals are the way to go. 

Diversify your real-estate portfolio

The first rule of investment is not to put all your money in one investment type. Just like the share market and mutual funds, real estate investments should be diversified as well. A diversified real estate portfolio built based on your risk appetite and financial goals can help you withstand financial turmoil caused by personal or external factors. By investing in numerous types of real estates types such as commercial, residential, short-term and long-term rentals, you can ensure a constant revenue stream and withstand setbacks. Have a smart real-estate investment plan that encompasses various properties guaranteeing high rental yields and capital appreciation. Well-calculated risk-taking is better than being reckless or risk-averse. 

Save money on tax exemptions.

The best thing about real estate investments is the tax perks one can benefit from. From home loan tax exemption to asset depreciation provisions for availing high rental income, there are multiple ways of implementing tax efficiency if you are a smart real estate investor. Read exhaustively about tax provisions and legislations, and it is wise to take advantage of these benefits. 

Rely on the experts

Potential real estate investors should rely on genuine real estate platforms from where they can derive constant updates and market insights from making informed decisions. Instead of being at the mercy of brokers, advertisements and middle persons who look out for their own interests, use a technologically advanced home-buying platform like Blox.xyz. With reliable and trustworthy technology on your side, navigating the complexities of the real-estate sector becomes a breeze. From a studio apartment plan to a luxurious 4 BHK, from market insights to documentation, they make the process convenient. 

The journey to your real estate investment needn’t be tumultuous and cumbersome, it can be enjoyable and give great returns all at once, and reliable tech-enabled platforms do make that investment journey seamless.

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