Friday, March 14, 2008

Indian real estate sector emerges as one of the biggest areas of personal investment

Another interesting aspect of real estate, which could help tremendously in personal finance is “rent discounting”.

The tool allows an individual or company to raise money through the ownership of real estate. For instance, if an apartment has been rented out for Rs.20,000 a month and the owner needs a large chunk of money for, say, a wedding or an emergency, he/she could approach an agency, which works with rent discounting. The agency would give them a loan for a certain amount. The rent that the individual gets would be used to pay back the loan.

With rent discounting, you could utilise the amounts recovered to spin off a property investment or pay off an existing loan against an existing property and within no time an individual or company could be owners of several properties.
Gold rush

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