POSTED BY August 20, 2012 9:26 am ONE COMMENTON
I think I already made it obvious from the question about my lack of knowledge about real estate. Please excuse the ignorance! Feel free to make corrections in my assumptions as needed.
1. Giving a house for rent in a metropolitan city, busy area – like hyderabad or bangalore
2. Better chances to increase rent for independent house/villa when compared to apartments.
3. It should be okay to get tenants willing to tolerate the increments and paying 35-45K monthly in present times should look reasonable (perhaps a 3 BHK house for 5-6 students or a 4BHK house for 7-8 students – fresh graduates like me starting to work in IT companies).
btw, How much does a typical house cost to get a rent of around 5L p.a (around 35-45K rent per month) in such areas? any estimates/ball park figures? I am planning for the rent to cover almost all of the EMI in the first 10-15 years after paying the necessary from my bank balance.
I believe that the rent far outweighs FD interest rates(on the money used instead for buying a house) after 8-9 years and can also be used for post-retirement.