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What To Look for When you Purchase a Rental House

The first key to any area is that people need to have a reason to want to live there

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If you find yourself looking to capitalise on the housing market, then this could be one of the best times to get into the real estate game. However, instead of trying to flip a home like many other people, why not lock in your cash flows for a long period of time and still guarantee that your asset will appreciate over many years? If you are thinking about purchasing a rental house, then consider the following items as the top characteristics for a rental property, according to Investopedia.

Amenities

The first key to any area is that people need to have a reason to want to live there. Some people will always be able to find a reason, and certain quirks in buyers will make even the worst characteristics of a home seem appealing. That being said, if you want to cast the widest net when it comes to finding qualified renters, then you need to think about who will be in the area and who will want to be in the area as well.

Amenities can be anything under the sun, but there needs to be a reason to attract buyers in the first place. This could be wildlife, parks, malls, colleges, entertainment, and other such things because the list just keeps on going. It is important to simply remember that when there are things to do and enjoy, that is when you have found an area that others will want to be a part of as well. If you can find investment, then people will come and will want to live in that place.

For rent. Image source: indianpropertylawyers.com
For rent. Image source: indianpropertylawyers.com

Job Market

The general job market is going to be important because you will want to have qualified renters to rent from you. However, you also don’t want to have a flat-lining pool of possible tenants. Instead, you want it to be growing. You also want to have your potential candidates continue to increase their wages so that they can continue to afford to rent from you (and possibly even affording an increase in other dues as well). The key is that you cannot neglect the other side of the equation, which is thinking about where you will be for the long term.

Assuming that you have a twenty or thirty-year mortgage (if not one that is even longer), then you could be locked into that property for a long time. So, instead of going to an area that is volatile with respect to jobs and the future economy, you want to find something that will keep growing and will continue to attract people in the long haul as well. Knowing the job market means you will know if your product will have enough demand to even succeed as a viable business plan in the long run.

Rents

Paying attention to the rents themselves is one key that you cannot forget, according to an article by Business Insider. It isn’t all about making immediate money as you will be able to make it in the long run if you have a solid property. That being said, you also want to be able to know you are not only clearing your mortgage payments and other obligations but that you are also able to afford anything else that comes up.

When you are pricing an area in general then you will also be able to tell a lot more about the area with respect to the class of people and the types of tenants you will be dealing with. That is just one of the reasons that it is so important to consider searching for properties with top tools such as DDProperty when it comes to actually seeking out the best properties.

Schools

While most people think that a school district is nice just for small families, the reality is a strong school district leads to a lot more. Having a strong school district in a general area means that people who live there are able to afford the taxes, the local government runs the area efficiently, and in general there isn’t a lot of volatility or crime. When you think about an area that you want to open a leasing property operation in, that is pretty much the exact summary of where you want to go.

Furthermore, even if the area suffers some lows for a certain period of time, the areas that get hit the hardest are typically the worse off neighbourhoods, which only means that the areas with nicer schools and a more solid economic base will continue to be sought after.

When it is all said and done there are always opportunities out there to open properties and find good investments in the real estate game. What you want to do is to find the places that give you the best chance at being successful and yielding the best profit for the least hassle and stress.

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  • Vrushali Mahajan

    yes, definitely. These are the essentials for people who are deciding to move in the near future.

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GST’s outcome: 2017 registered as the most significant year for economy since Independence

The new indirect tax regime unifying the Indian market has four tax slabs of 5, 12, 18 and 28 per cent.

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Earlier this year, World Bank announced that India had jumped 30 places in its Ease of Doing Business rankings
Earlier this year, World Bank announced that India had jumped 30 places in its Ease of Doing Business rankings

New Delhi, Dec 25: The 70th year since Independence will go down in Indian history since the country switched over to the  (GST) regime, realising, thereby, the vision of a unified market in a federal system that guided the nationalist bourgeoisie in joining Mahatma Gandhi’s struggle to liberate India from the British.

Of course, the structural reform came accompanied by pain for trade and industry caught off-guard by the rigours of new compliance procedures. Queried by corporate leaders at industry chamber Ficci’s 90th AGM here earlier this month on how GST was impacting through lower tax collections, Finance Minister Arun Jaitley put the onus on them.

“It is you from industry, who have been calling for so long to bring GST… and no sooner do these initial problems in implementing a reform of such scale appear, then you want to go back to the system we’ve had for 70 years,” he said.

The earlier system was a myriad of central and state taxes where the movement of goods was slowed down by-products being taxed multiple times and at different rates.

State level taxes replaced by the pan-India GST include state cesses and surcharges, luxury tax, state VAT, purchase tax, central sales tax, taxes on advertisements, entertainment tax, various forms of entry tax, and taxes on lotteries and betting.

Central taxes replaced by GST are service tax, special additional customs duties (SAD), additional excise duties on goods of special importance, central excise, additional customs duties, excise on medicinal and toilet preparations, additional excise duties on textiles and textile products, and cesses and surcharges.

The new indirect tax regime unifying the Indian market has four tax slabs of 5, 12, 18 and 28 per cent.

It has a novel feature whereby goods and services providers get the benefit of input tax credit for the goods used, effectively making the real incidence of taxation lower than the headline taxation rate.

Indian economy has surged many folds after the introduction of new tax structure
Indian economy has surged many folds after the introduction of new tax structure

The second half of the year saw a radical reworking of the items within the four-slab tax structure by the supremely federal institution of the GST Council, whereby all but 50 of over 1,200 items remained in the highest 28 per cent bracket. Those retained included luxury and sin items, the cess on which goes to fund the compensation to states for the loss of revenue arising from implementing GST.

With the Council’s decisions last month, GST has been cut on a host of consumer items such as chocolates, chewing gum, shampoos, deodorants, shoe polish, detergents, nutrition drinks, marble and cosmetics. Luxury goods such as washing machines and air conditioners have been retained at 28 per cent.

Eating out has become cheaper as all restaurants outside high-end hotels charging over Rs 7,500 per room will uniformly levy GST of five per cent. The facility of input tax credit for restaurants has, however, been withdrawn as they had not passed on this benefit to consumers.

Petroleum, including oil and gas, is a strategic sector that is still not under GST, while the industry has been pushing for its inclusion so as not to be deprived of the benefits of input credit.

Including real estate is another matter pending before the GST Council.

On the functioning of the Council, Jaitley who is its head had this remarkable insight about the way in which it had effected such large-scale rationalisation of the item rates in a short span of “3-4 months”.

“Everything has been achieved by consensus in the best spirit of cooperative federalism. There has been no politics, even from states which are controlled by opposition parties,” he told a gathering of industry leaders here.

The other side of GST was revealed through what the International Monetary Fund described as “short-term disruptions”.

With businesses going into a “de-stocking” mode on inventories in anticipation of the GST rollout from July and sluggish manufacturing growth, among other factors, pulled down growth in the Indian economy during the first quarter of this fiscal to 5.7 per cent, clocking the lowest under the Narendra Modi dispensation. Breaking a five-quarter slump, a rise in manufacturing sector output, however, pushed the growth rate higher to 6.3 per cent during the second quarter (July-September) of 2017-18.

Besides, technical glitches appearing on the GST Network portal, often unable to take a load of the last-minute rush to file returns, marred the filing of returns by traders, forcing the government to postpone filing deadlines several times. The glitches also led to export refunds piling up, resulting in a grave situation of the cash crunch for exporters, whose working capital was getting blocked.

In the final analysis, the GST balance sheet is provided by Gita Gopinath, Professor of International Studies and Economies at Harvard University, who is also the economic adviser to the Kerala Chief Minister.

“GST is a real reform. It is a way of formalising the economy. It is a very effective way of ensuring tax compliance, making it harder to earn black money. I mean, nothing ever goes away completely, but it just makes it harder to make it happen,” Gopinath said in Mumbai earlier this month. 

The icing on the cake came with the World Bank announcing earlier this year that India had jumped 30 places in its Ease of Doing Business rankings to get among the top 100 countries on the list. Though reforms in India’s direct tax regime figured among the parameters considered in the evaluation, GST had not been taken into account by the multilateral agency since their cut-off date was June 30. IANS