THe Blog

August 05, 2019

Does renting out your house make sense?

This article in The Hindu Business Line assesses the obstacles to adequate rental supply in the housing market, citing findings from IDFC Institute's India Infrastructure Report. Excerpts:


"Without capital gains, the low rental yields — about 2-4 per cent in most cities, as per a report by the IDFC Institute — are not a great value proposition. Rents must be attractive to entice home buyers to buy or stay invested in real estate. Without either a price correction or a hike in rent, rental yields would continue to be low and there is no reason to hold an asset that gives low returns."


Read the full article here.

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