Missing your sweet old returns from property – Introducing Virtual Property.
Think about it for a moment,
Are you really interested in the physical brick and mortar construction on a piece of land? Not saying that, people should not own one for living, but owning multiple for the purpose of investment is really not the best way forward in current situation.
You may have to deal with (and sometimes suffer),
1) Multiple Tenants- who pay rent and sometimes default, or are gone back to their home town due to work from home scenarios and lockdown conditions.
2) Choosing a property which may appreciate with time, will be far off from city, if it is too distant rent collection is a problem, regular and timely receipt of the rent is a big question.
3) Choose a better location in city, then property appreciation is a question.
4) Hotels and beer bars and marriage halls may sometimes reduce the appreciation in future.
5) Then there are cases of Theft, Robbery, Suicide, and other criminal and non- criminal offences which may render the flat or the complete building, being disliked among buyers and tenants.
6) If bought as an investor, in an under construction building, there is a risk of non-completion of project and your money being stuck for several years!!! Bye Bye Capital Appreciation.
7) Last but Not the least, Majority of the times, Land; the only appreciating and the most important component of the building is not on the house owners name.
8) Building Redevelopment and getting Conveyance is all together a new story.
This leads to the conclusion that
People are only Interested in the Returns that the property provides
and not the physical property itself.
Let us consider A property of Rs.3 Crore, It will be bought on a loan for 360 months (30 years) and EMI turns out to be almost 1% per month Rs. 3,00,000/-.
You end up paying approximately 10,80,00,000 over 30 years, almost 3x Times. Do you think your property will be at least 10.80 Cr in 30 years??? Capital Appreciation now looks far!!!
Any property in a Metro City like Mumbai, will give you no more than 2% Rent per annum, brokerage and maintenance are extra and recurring expenses.
Now let’s Compare
Consider this Virtual Property of 3 Cr. (PROPERTY ON PAPER/DEMAT FORM)
1. EMI will be Rs. 3,00,000/- Rs.1,00,000/- only (66% discount)
2. Tenure will be 30 Years 12 years only (60% discount)
3. You only pay 1.44 Cr over 12 years for a property worth 3 Cr. Only Half its worth.
4. Registration will be done, stamp duty will be paid and you will receive complete documentation
5. Rs. 0/- Down Payment
6. 0% Maintenance costs
7. 4%-7% rental yield (Rental income increases every 5 years)
8. All the receipts deposited in your bank account, no hassle of rent collection.
9. Guaranteed property appreciation every year
10. Fixed and Guaranteed property sale in 25 days, Sale can be done from very next year.
11. Partial Liquidation of property is allowed; you cannot sell a kitchen in the physical property.
12. Liquidity available after 3 years
13. 100% transferable to nominee even if the EMIs is not fully paid. Bank will auction the property to recover its loan, and the family is left with nothing.
14. No risk of earthquake, fire, flood and tsunami
15. No cost of property insurance
16. Being virtual property, Complete transferability to any part of India
17. Complete backing by Government of India and RBI
18. Every Rupee invested is totally safe and secured
19. Instant purchase and ownership, no OC, no Possession and no delays.
20. No other headaches mentioned above
Most beneficial for
1)Young people working from home or frequently changing cities for work
2)People who want to achieve property returns without owning the physical property and its nuances
3)Millennials / Gen-Z who dream of buying their own property or have inherited several properties from their parents
4) Ideal for people who have 2 or more properties
Some related Articles
https://www.squareyards.com/blog/virtual-property-a-smart-commercial-real-estate-investment
Virtual Land, Real Money – The Rise of a new parallel economy – by finshots
An explainer on how virtual worlds are creating a new parallel economy https://bit.ly/3971a7b
A glimpse on, where we invest the funds to get such high returns
To know more call us on 9664696653 or whatsapp or follow us on Facebook at Sanghavi Insurance and Finance Consultants.