Yes, this is sensible! The government has decided to put the urban rental housing policy on the back burner. The rental policy is unlikely to be formalized anytime soon. However, whenever it happens, it aims to set right the tenant-landlord relationship. This is especially a tricky aspect in cities. Nevertheless, there is an unease & reluctance with the state governments.
The first draft of this policy was put in the public domain by the government in October 2015. It sought to promote various types of public-private partnerships for rental housing in the country. It was supposed to make good the growing shortage of housing resulting from increasing urbanization. The urban housing shortage was estimated to be 18.78 million in the 12th Five Year Plan. This is the reason local laws were framed in favor of tenants. Concern was also aired for landlords who were unable to evict tenants paying paltry rents which were frozen decades ago.
Buying Property to Earn Rental Income
Approach the real estate investment process with forethought. Only then will you get optimal results. Avoid serious financial setbacks from wrongly chosen properties. Finalizing purchase of the first rental property can be a daunting task. You should be involving plenty of planning. Take an unbiased approach while hunting for rental investment property in areas of properties & your investment range.
Choose the Area Where You Want to Buy Rental Property
Quality of location matters a lot. Determine the type of renters, you would like to have & keep in mind how frequently you may have face vacancies. If you are investing in rental property near a university your pool of investors are most likely to be students. It is also likely that you may face frequent vacancies since they may return home for holidays. It would therefore be sensible that you look for long-term leases.
Be Aware of Present Rental Amount in the Region
Find out more about the region & judge where & how it would be heading in the next five years. Significant developments in the area can make a big difference. Property taxes may also arise in due course of time & make your property less affordable. If you are looking for long term leases, single-family homes are a better option. Dual-income families are preferable over single professionals since they are fiscally stable & likely to pay rent on time. As a landlord, you should buy rental property in areas which fit this criteria.
Narrow Down on the Right Location
Look for properties which will potentially yield steady rental income. The capital value of your property should also be appreciated over time. Consider properties which are either within the budget or slightly above it. Costly options can be paid through bank leveraging. With modifications & cosmetic changes, rental properties can be made more desirable. Eventually, it will attract tenants who are willing to pay higher rents.
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