Rental Increase: Fill & Download for Free

Rental for a similar flat at 3% on capital value would be Rs.3 lakhs per annum plus maintenance charges of say Rs.50,000 = Rs.3,50,000. For simplicity, movement charges every 2–3 years is not considered. As also rental increases year after year.Interest income from Rs.1 crore at 7% would be Rs. 7 lakhs less tax of Rs.12,500 plus 20% on Rs.2 lakhs (or more depending on your other income) = Rs.52,500 = 6.5 lakhs (approximately). Bear in mind interest rate is on a downward trajectory.So the net benefit from Own vs Rented house is Rs.3 lakhs per annum, which is about 3% on Rs.1 crore. If the difference is deposited in RD on a monthly basis at 3–4%, the benefits would be negligible, so ignored.Assuming average inflation of 4%, your net worth would deplete by 1% per annum (minimum).Against the above:Let’s assume that flat prices would go up by at least 5% over the long term.Your flat has a high UDS (50% or more Undivided Share) where the land portion would grow at 6–7% per yearWould open up redevelopment opportunities say after 25–30 yearsYour family members consider owning a house as more secure and socially respectableIn the end, owning a home is a personal choice.

Absolutely! While we have other income streams, my husband and I have 17 rental units that bring in over $100k each year, and it only took us 8 years to do it.The key is to find value add multi-unit properties that are undervalued due to condition or low rents. Then you increase the rental income by improving the condition, or by doing a rental increase on the existing tenants. Once you’ve increased the value, you can either refinance and recoup your initial investment, or secure a home equity line of credit to be able to purchase more.If you set a specific cash flow requirement of any new property that’s between $300-$600 per unit you’ll find that it doesn’t take too many years before you have enough cash flow to live off of.

The wealthy think a little differently about money.I want a different car… an expensive car. Instead of buying an expensive car and blowing the cash I have in the bank, I invest that cash in something that will generate enough extra income to cover the cost of the car.Some people invest in stocks, or businesses. I usually invest in commercial properties.If I want a car, I buy a property. The property generates enough income to pay for the mortgage, enough to pay for the property taxes, enough to pay for the insurance, and usually enough to cover all of the monthly payments on the car also.Over the next few years, the car gets paid for, and I get a “raise” because the rental income continues to come in regularly, and about the time the car is getting paid off, the rent will also be scheduled to increase.I have an idea of which property I’m going to offer on.I also occasionally need motivation to find a property. For my motivation today, I have scheduled appointments to test drive a Corvette ZO6, a Bentley Continental GT, an Aston Martin, and a Porsche GT3.I won’t buy a car until I know how much positive cash flow the property is going to generate.You can start small, but start to change the way that you think about money. Begin investing to generate additional income, as opposed to merely spending.EDITED: I ended up with a 2016 Corvette ZO6 that I bought from a friend firs. about $8,500 below market price. I leased out two more spaces in one of my buildings and their combined rental increase is $15,200 a month. I put zero down on the car by using my credit union as the lender. My payment is $850 a month or so. I’m sorry to say that I didn’t pay much attention. I had already done the math and knew what my payments were going to be, and I knew that the vehicle could be paid off in a few months if that’s what I wanted to do with the increased rental income.