With the last year dramatic price increase in real estate, you must start thinking about investing in rental property in metros. Now it might be a good time, buying an apartment for long term, so if you are living in Chennai, consider purchasing a rental property in Chennai. Why you should choose real estate in Chennai and other metro cities, there is strong job growth in big cities and people are moving, in search of good jobs and educational institution. Metros in India promise a steady supply of tenants.
Benefits of Owning Rental Property
- Owning a rental property has its own benefits as it can be profitable and you can make money in two basic ways: appreciation and cash flow.
- The expenses on rental apartments would be mortgage payment , property tax and repairs. You will get cash in the form of income to meet the expense.
- Along with rent, it will also increase the value of property over time.
- Multi family properties and vacation homes can help you make money on weekly or monthly basis.
- It remains a nice source of extra income during your retirement.
Tips Buying Rental Property
You will find different niches and strategies where you can invest in real estate. If you are looking for long term stability, you may invest in single family rentals. You may find hundred of ways to invest in property in Chennai, but select the strategy that fits right into your lifestyle.
Types of home you should buy – you should always buy well maintained homes , so that it doesn’t make difficult for you to get a good ROI on them. You must avoid purchasing expensive homes because higher the home price, lower would be the rental income.
Get pre-approved loan – you should never think about purchasing a rental property if you don’t have a healthy fund with you. Remember, you have to pay the loan amount and repairs if there are no tenants. You must choose a home loan that you can afford and get pre-approval of loan before you start searching for a house.
Choose only good locations – you may ask real estate agents to get an idea about different locations in Chennai that offers good rent. You can ask other renters in those areas how much they charge for 2 BHK and 3BHK apartments. You must always choose a location to buy rental properties that have parks, school, hospitals, shopping centers and public transportation.