Rental Income Guide: How the 1% Rule Can Help You Earn ₹50,000 Per Month from Your Property
Rental Income Guide: How the 1% Rule Can Help You Earn ₹50,000 Per Month from Your Property
Property investments can be profitable if planned wisely, and rental income plays a crucial role in determining returns. One proven strategy, the 1% Rental Rule, helps investors ensure steady earnings and avoid losses.
What is the 1% Rental Rule?
The 1% Rental Rule states that the monthly rent of a property should be at least 1% of its total purchase cost. This includes not just the property’s base price but also registration, stamp duty, furnishing, and brokerage charges.
Example of the Rule in Action
If a property costs ₹50 lakh (including all expenses), its monthly rental income should ideally be ₹50,000. This ensures that EMI payments, taxes, and maintenance costs are covered, while also leaving room for profit.
Why It Matters
Investors often regret buying a property when rental income falls short of covering expenses. Following the 1% rule helps in selecting income-generating properties and avoiding financial strain.
Disclaimer: Real estate investments are subject to market risks. Potential investors should evaluate location, demand, and property value before making a decision.
