Rental returns are almost always much lower than what has been projected in this creative. Various aspects of real estate:-
1. Typical residential rental returns across the country are in the 1.5-2.0% range. The costlier the property, the lower the returns. If you're getting more, you're plain lucky.
2. The creative does not take into account the tax on this rent. After the standard deduction, put tax also as per your tax bracket – 30% for most members of this group.
3. Do not look at the rise in property values in the past few months. Real estate has not moved during the period 2013 – 2021, but rather the first half of 2022.
4. If you've got great returns on your property during this period, again it is luck. Most likely it was due to a special one-time event occurring like a highway or IT park etc having been announced or coming up, or things like that which really cannot be attributed to your property-picking skills.
5. Rebate under 24(b): You get 30% (as per your tax bracket) advantage but limited to 2L max a year. Seems good? What about the rest 70% of the interest that you pay and it needs to be added to your house cost?
6. If the property were to rise at G-Sec rates regularly – is like if wishes were horses….never happens linearly like this.
Use our accurate bank nifty option tip and you are good to achieve financial freedom soon in life.
