The pandemic showed us why invest in renting property or say having multiple streams of income is so important. If something goes wrong with one, you must have a backup. The world is unpredictable and things can go wrong. Many lost their stability during this period, particularly financially.
Passive income is a way of making money by putting in little to no effort to maintain it.
In fact, many millionaires do not rely on a single source of income but rather vary their income by multiple streams.
Investing is a popular choice when it comes to this. The idea is to make your money work for you.
Why Should You Make Passive Income?
“If you don’t find a way to make money while you sleep, you will work until you die.”
– Warren Buffet, an American Investor
Time is money.
And passive income allows you to make money while not putting in as much time to maintain it. Unlike a conventional day job, earning passive income is not proportional to the time and effort invested in that job.
You can use the extra income to become financially free and increase the stability in your life. You can pay off debts faster, increase your standards of living, save money for retirement (or even earn during retirement) and so much more.
Having financial freedom means having enough funds in savings and investments to lead a comfortable life. It allows you to live the kind of life that you desire. In the most basic sense, it means not having to worry about supporting a simple lifestyle and not be overwhelmed by debts and responsibilities. It even prepares you for the uncertainties that might come along.
Passive income can potentially even be turned into a primary source of income, leaving you to work flexibly and make more time for yourself and your family.
Rent As A Passive Income
When it comes to investing, real estate, as is, is a safe, tried, and tested option. It is not very volatile and is predictable. The value of most of the properties eventually and steadily goes up with time, guaranteeing profit, leaving only a few exceptions for the same.
Meanwhile, renting the place can make you steady passive income.
Especially in metropolitan cities like Mumbai, there is a constant need for rental properties. So, purchasing a property to rent it out will always be a good idea. As a landlord, you get consistent monthly income from the tenants through rent.
There are many other ways to earn passive income, but the most profitable, stable, and secure way has to be through rentals. While renting a property, you know for sure how much you are going to make in a month, a year, and so on. And hence, it is reliable and safe. While the rest of the ways to make passive income can be unreliable because you never know for sure how much you will earn that month.
It allows you to manage your finances better as there is stability in the amount that comes in every month.
Mumbai – A Location Where Rental Properties Are Always In Demand
Mumbai is a city of constant buzz. It is the financial capital of India and hence there are people always coming in and going out of it. People from throughout the country come here with hopes and aspirations for a better life.
And their first instinct is never to straight away buy a property, but instead, live in a rented flat first and gain some stability.
Not to mention, renting is also very economical for most people as purchasing a property in a city like Mumbai can be an expensive affair.
Rent inflation in the Mumbai Metropolitan Region (MMR) is also the highest in the country. According to statistics, the average rent in MMR increased by 18% from 2017 to 2018. This was the greatest amount when compared to any other Indian city.
It allows you to manage your finances better as there is stability in the amount that comes in every month.
Things To Consider While Buying A Property For Renting It Out
- Location – A location that has a good residential area with proper connectivity to the rest of the city is more desirable and likely has a higher rent. It preferably should be a convenient location that has essential amenities close by like schools, grocery stores, etc. Such a location in Mumbai barely ever takes time to find a tenant.
- Do The Math – As a landlord, there might be some costs involved with the property like maintenance and taxes that would have to be subtracted from the rental amount. A place that has lower maintenance can be ideal to maximize profits. For instance, at our project, Integrated Arya, in Ghatkopar, we provide a Low Maintenance Advantage to make it economical for all.
- Rent Increase – Generally, the landlord increases the rent each year by 10%. So, if a tenant is leasing your property for years, they will be needed to pay the hike each year. Therefore, finding tenants who want to stay longer, is more profitable.
Start Looking For Your Investment Property!
We at Integrated Spaces, invite you to take a look at our project, Integrated Arya, located at a prime location in Ghatkopar with great connectivity. An ideal place for living and renting.
Visit www.groupintegrated.com for more information.
Or contact us on +91-022-25018899 to get further details.