Rental income some advantages and some disadvantages in India. Currently I have two rental 2 BHK flat in my home town. Which give me around INR 10,000 per month as a passive income.
PROS
- Rental property always in demands in town area
- In India most of the house owners do not pay income taxes for the income from renting of property especially houses but they will get a housing loan to build them for the tax exemption ( a hypocrisy)
- The value of the building depreciates with time but land and the rent increases over time
- You are having your own home and you can do almost anything with it
- it is like someone giving salary without having to work
- The number of hours you need spend for is nearly negligible like having a hobby or watering a garden plant
CONS
- You can’t reap immediate income as soon as the house is completed
- it can’t be the sole source of income
- Having non complaining good tenant is a bliss
- Having a non complaining neighbours is a bliss
- If you are frequently transferred to other places it is difficult to manage
- Getting rent on time may be problematic
- Dealing with house brokers needs courage
- If a tenant is not good it is a pain in ass
- Making a tenant leave needs lot of experience and it is not for light hearted
- You should be a good negotiator to have maximum rent
