Invest in Real Estate For Just Rs 300

A lot of people have made fortune by renting out whether residential or commercial. But the problem with that is either they have a lot of capital or they had the land. If a Salaried Individual want to get into rental business, it will be a big hassle. We first have to get a huge capital to invest, then manage tenant, legal hassle or something else.

But through Real Estate Investment Trust or REIT we can own the commercial building for just Rs 300. REIT is just like mutual fund where the companies pool money from investor and investing in the commercial properties. The good thing about REIT is that it is regulated by SEBI. Also REIT has to give 90% of their rental income back to the investors. Also the commercial rental yield in India is around 5% to 6% whereas the REIT gives around 6% to 7%. Along with that you can also get 3 to 4% of increase of wealth.

So I have created a Google Sheet to track all our REIT investments. Along with that it can track how much dividend we are getting and how much growth is happening in the REIT investment. I feel it is great for Salaried Individual to invest in REIT because they can get Diversification as they are investing in Real Estate as well as its good for passive income as we get quarterly rental income from the comapnies.

If someone has invested around 1 Lakh in REIT, we can expect around Rs 6000 to Rs 7000 per year and along with that around Rs 3K to Rs 4K as growth which is a great returns on the investment. The price of the REIT is around Rs 200 to Rs 400, so for just Rs 300 we can own the real estate and get rental yield.

Posted Using INLEO