[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.|
Here I have important INDIA real estate news to share with you which is as mention under.
Indian households love real-estate. In India, the average family holds 77 per cent of its total
assets in real estate, according to a July 2017 RBI Household Finance Committee Survey.
These include residential buildings, buildings used for farm and non-farm activities,
construction for recreational facilities, and land. Since 2014, the Securities and Exchange
Board of India (SEBI) has also opened up commercial real estate for investment too.
In urban areas, many individuals often own one house and buy another one as an investment.
They rent it out to generate a second income. Similarly, many wealthy people in India
purchase commercial offices or shops, and lease them to businesses. However, managing
a real estate portfolio is a challenge. There is a lot of physical paper that has to move around
if you have to lease your premises. You have to be personally involved in signing the
registration for rent and purchase agreements.
You have to renew your lease every year and continuously stay on high alert to protect
yourself from fraudulent transactions. Real estate investment trusts, or REITs, are a new
way of investing in the real estate market. These are mutual fund like-units you can buy
from stock exchanges. They invest in rental income-generating real estate assets like
shopping malls, office blocks and apartment blocks. These trusts have to distribute 90
per cent of the income they generate through rent. When an asset is sold, unitholders get
the benefit of capital gains too.
There are three REITs listed in India that allow you exposure to commercial real estate in
major metro cities like Mumbai, Bengaluru, Gurugram, and others. Over $3.5 trillion worth
of assets are owned through such funds in the United States and a lot of retirement money
finds its way into these funds. It is a very structured way of investing in income-generating
real-estate. This column has advocated that money in physical assets is capital protection.
That is mainly for those who do not want to risk their life savings into financial assets driven
by market cycles.
Read more at: https://www.newindianexpress.com/business/2021/feb/22/real-estate-investments-are-now-simpler-than-ever-2267168.html
Have a nice day