After retirement, one avenue to earn income is through rental. Assets are invested in this regard. If property is purchased and rented out, income can come in steadily. Along with financial stability, rental income also grows. However, there are some precautions to be taken. Large amounts are invested in properties necessary for rental income. If you want to invest in investment properties, it’s advisable not to overburden yourself. There are also considerable costs involved in making down payments. It’s essential to have a good term insurance cover. Charges should be reduced for the properties you own. Down payments also come with other expenses. Therefore, it’s crucial to know how to invest in properties, how to give rents, and how to maintain them. In this regard, the help of brokers is essential. Brokerage charges are also incurred for this. On the other hand, property rates have increased by more than 9%, leading to increased costs for property investments.
After purchasing a property for rental income, it’s important to look for good tenants. Managing tenants, managing property, etc., incur expenses. If the rent is not collected, you have to deal with tenants who default on rent payments, which can cost you more. These considerations need to be taken into account. Therefore, it’s necessary to consult a real estate manager. However, finding a good property manager is not easy. Also, the location of the property for investment is vital. If you invest in properties, it’s best to consider all aspects beforehand. Buying property to manage assets has many benefits. But there are no income benefits. The income earned on rental income is used to meet expenses. Real estate brokers and builders warn against losses in real estate. But many people have also lost their investments in this field.
After retirement, is it possible for you to manage your investments in properties properly? Is it difficult to recover the rental income, pay the electricity bills, pay the society charges, and manage the building? It’s not possible after reaching a certain age. Therefore, considering real estate as a means of income after retirement is not suitable for everyone. For example, if you have a property worth crores, selling it and depositing it in the bank can fetch you interest of Rs. 10 lakhs annually. On the other hand, if you have an amount between Rs. 2 lakhs to Rs. 3 lakhs below the property, it may incur a loss. Therefore, rental income is not suitable for a person aged 75. It’s more suited for those aged around 55 who can manage the expenses incurred along with other income sources.
