I see many owners disappointed when they find out that their rent will not cover their mortgage. Real estate prices in Chennai has gone up so much that if you buy a home today, your rent will not cover your standard 70% mortgage.
For a 60 lakh flat on OMR, with a rent of 15k, the yield is within the 3 to 4% bracket, which pales in comparison to bank interest rate, but it is still decent for this asset class, when you account for asset growth.
Here is an opinion from Knight Frank India in The Economic Times stating typical yield on properties
Located in a prime location in Adyar, this property is ideal for offices, play schools, clinics, parlours, warehouses, etc. You wont get a better location than this. Main house is approximately 1600 sq. ft. and outhouse is 300 sq. ft.
Key highlights of the property are
- Location, Location, Location (Next to Dominos in Adyar)
- Independent home, with well partitioned good-sized rooms.
- 300 sq.ft. of well-maintained Outhouse is available for rental as well.
- Property on a 40 ft road
- Less than 50 metres from main road. Property is highly visible from main road.
- Ample parking
- Plenty of businesses nearby
Call 9962612255 to schedule a visit.
