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
Mob - 9869869161
Chief Service Officer, Freedom Factory.
NISM-Series- V-A certified MFD,
IRDA certified Life and Health Insurance advisor
Comments