Archives June 2020

5 benefits of purchasing an investment property

The benefits of investing in real estate over the long term are manifold. By investing in income property, you can put your idle cash to work.

What’s an investment property anyway?

“Buying a property to earn revenue is referred to as Income Property.”

Both residential and commercial properties come under income property. Investors earn money by holding and renting the property until the value appreciates, following which they sell for a profit.

More so, if you’re looking to get higher rents for your income property, consider hiring the services of interior designers for remodeling your property to increase their rental values.

Several companies are offering the entire plethora of services. These include rental property management, interior decoration, and residential property management services. And you can approach a property management company in Delhi NCR for interior designing for homes in Delhi NCR too.

However, before investing in income property, the general recommendation is to calculate the risks, expected earnings, tax benefits, among other important aspects.

Here are 5 benefits of investing in income property.

1) You’re in control all the way

As an investor in income property, you take all the decisions – regarding rent and maintaining the property when renting out to tenants.

Also, you can avail services of such as VRBO and Airbnb for listing your property to offer accommodation to travelers. Or, hire the services of a property management company to help you connect with interested parties. And if you’re residing out of India, you can avail their NRI property management services as well.

2) Greater property value

A noteworthy benefit of investing in real estate is that you can pay some amount from your savings while borrowing the rest from lenders; they lend up 20 times more. Yes, you can leverage a property. Though, if you use more debt than equity, your investment will be ‘highly leveraged’.

Over time, your property will appreciate and you can earn appreciation profit even after clearing your interest and other dues.

3) Higher Earnings

By having tenants in your investment property, you can earn rental income. And whatever money remains after clearing all related property expenses (mortgage payment, maintenance costs, and vacancy charges) constitutes your profit.

4) Lower your mortgage

You can avail the 30-year fixed-rate mortgage loan. Such loans have interest rates that remain constant for the full 30 years of the loan. You may pay more money to interest than the principal during the initial years of the loan. Though, by the 15th year, the amount comes close to a 50/50 split. Hence, you can create more wealth for yourself by holding on to the property for longer while the more your tenants are paying the loan principal.

With each passing year that you own the property, you can utilize your tenant’s money to clear your debt. By reducing your loan amount, you’re building wealth; you can access the money if you refinance your loan or sell the property.

5) Tax Benefits

Rental property owners can avail tax deductions. You can write off travel costs, interest on your mortgage, property taxes, legal fees, maintenance repairs, insurance, and interest on credit cards that you’ve used for your property purchases.

Depreciation

In addition to the above write-offs, you can depreciate the purchase costs of your property as per a fixed depreciation schedule – all this while your property appreciates in value.

As compared to investing in stock markets where you’re required to pay income taxes, investing in rental property is more advantageous. Because you can offset the rental income against the depreciation expense of your property. That said, you can lower the amount of taxes you’ve to pay on rental income.

Intrigued?

Get more answers by getting in touch with our end-to-end property management company in Delhi NCR.

contact@theluxia.com |   +91 9810505543

 

Selecting an interior designing company: Consider these 8 aspects!

Everybody works to have their dream home. And along the way, you would require professionals for interior designing your house. Now, for transforming the vision of your dream abode into reality, you can approach the interior designers in Delhi NCR; they come with varied years of experience in interior designing for homes. Also, they cater to your rental management requirements, if any.

Additionally, you can rely on the property management company in Delhi NCR for your property management for rent needs. Whether you’re looking for design experts for interior designing for home or interior designing for bedroom, the interior designers in Delhi NCR are only a call away.

With impressive interiors, you can enjoy the benefits of driving up the rental value of your house too.

Though several companies are engaged in interior designing in Delhi NCR, yet you need to consider various aspects when making your choices

#1. Know your style

As part of interior decorating your home, you want your individualistic attitude to reflect, right?

Here, you must know what your style is. Then, accordingly, you can guide the interior decorators to go about doing their job while lending your personalized touch.

Of course, designers have their signature style too. Even so, the best in the business must be able to adjust to your preferences.

#2. Check some portfolios

Assuming you know how your house is to be revamped and have shortlisted some designers that match up to your personal tastes, you may want to read more about their work and browse through their portfolios next.

Going through customer testimonials can also help you make up your mind whether they are suited to perform the given job or not. Additionally, check out their previous creations and assess whether they are in line with your vision.

Plus, a background check helps to know the years they’ve been in business and their level of expertise.

#3. Financial Considerations

Interior decorating your home can be an expensive affair. Thus, you must tread cautiously, especially if you’ve financially prudent. While some interior decorators work at fixed fees, you may have to pay on an hourly basis for others.

A good strategy is to discuss your requirements with a few designers; more so, request them for quotes. That said, depending on whether you can afford the designer or not, you must pave the way forward.

#4. Be open-minded

Interior designers are always buzzing with new ideas and they may discuss the ones that they find suitable for your home. However, in some cases, they may try and impose their suggestions upon you too, so be cautious.

Nevertheless, you must also make sure that you listen to their suggestions and think them through. Though you should keep an open mind, yet avoid making hasty decisions.

In all, you must make a balanced decision; ponder over all related aspects thoroughly beforehand – if you want your money’s worth that is.

#5. Always compare notes

When choosing an interior designer, ensure that you both can work in sync when brainstorming design ideas. Share your initial plans and allow them to give their inputs, opinions and discuss the challenges.

Always choose designers that are flexible and can sit your sensibilities in their creations while incorporating your ideas in the final blueprint.

#6. Go ahead and sign the contract

Upon deciding your designer, the subsequent step would be to call and let them know your decision. Make sure to read the contract carefully too. Sign the contract before work commences; also, do not pay anything earlier. The contract must include budgets, deadlines, responsibilities, among other important clauses.

#7. Start Planning

After selecting your interior designer, follow by making your plans. Decide the rooms you want to remodel and the materials needed. Of course, you must consult your designer on all aspects. More so, if you would like to keep some old artefacts, inform your designer about such decisions.

#8. Adjust your schedule

If you’re a working professional, then you’ ll need to divide time between your work and designing your home. As such, you may need to be at home for particular parts of the project, so update your co-workers and arrange for leave if required. Also, work with your designer and discuss your availability for pursuing the project during the given timelines.