Creating Rental Like Income

Everyone aspires to receive regular income without working. To achieve this real estate is a much sought-after avenue. However real estate poses certain challenges

• Low yield – Annual Rental Income is just 1 to 2% of the property value.

• Rental Income is taxable as per individual tax bracket.

• Additional payment of brokerage for rental agreements, society maintenance, property tax further dents the rental income.

• Search for new tenants every 2 or 3 year.

However, if the goal is to generate regular cash flow without any risk, then there are other ways to achieve it. One of the best ways to do so is through a guaranteed income plan.

• It is the safest way, as the underlying asset in guaranteed plans are Govt securities.

• The payouts are tax free.

• The yield on invested value is around 5 to 6% annually.

• Investment can be done over a period of 6 to 10 years.

• The yield is guaranteed for long tenures (30 years), even though interest rates will go down to 2 or 3 % in the future.

• Flexibility to exit and take refund of capital or pass on payout benefit to nominee.

• After payout period is over, refund of capital invested.

Guaranteed plans tick most of the boxes that a conservative or real estate investor looks for. At Freedom Factory we believe that at least 30% of future cash flows should come from safe, tax free and guaranteed assets.

Augustine Mendez

augustine.mendez@freedomfactory.in

Mob - 9869869161

Chief Service Officer, Freedom Factory.

NISM-Series- V-A certified MFD,

IRDA certified Life and Health Insurance advisor

www.freedomfactory.in