Rental income may not be the best option
If you are planning to buy a house to earn income from rental yield, you may want to think again. Most homeowners may look at the value of property but forget to assess the returns in the form of rental yield along with all the hassle of handling a real estate. To begin with, metro cities such as Mumbai and Delhi give a rental yield of 1.5%-2%, according to property consultants. The property prices and rental yields are closely linked to each other. The oversupply of residential projects has also impacted rental yields especially in metro cities. Delhi-NCR has larger number of investors in the market and most investors are stuck and they are willing to reduce prices to get out of the market. The problem is more in Delhi. Rental yield is better in Delhi but the valuations are not great. In terms of valuation, Mumbai is still doing better.
Tags : News/Views