You would be surprised that majority of people who buy a property for investment, end up getting very low return on investment. They may get higher appreciation for property, but higher share of loan interest and very low rent to value ratio give them very low returns. You should be rational and business-minded when buying an investment property than buying a home. Since you don't plan to live in there, you should do your math right and investigate thoroughly before you invest. What's the Return on Your Investment? Your investment appreciates over time, but this alone is not enough to calculate your net returns. To keep a property with you, you incur annual costs such as loan interest, property tax, insurance, maintenance etc. Such costs are called carrying costs of your property investment. But, as you keep the property, you also earn rental income, which adds up to your return on investment. The rental yield is the ratio of real annual rent (Rent - Maintenance) to p...
Written by Manish Agrawal, CEO of CMRS Group, An ISO9001:2008 company and a member of IGBC, CMRS group is committed for high quality construction with environment friendly practices. All our homes come with Smart, Green and Energised homes concept.