Lease rent returns drop down to 2 to 3 percent in SOBO
With growing capital values of Real Estate and high society maintenance charges and property taxes, the lease rent yields are plummeting to levels of 2 to 3 percent.
For home buyers, on one hand, the Capital Values have grown over 100 percent over the past 5 years in most of the projects across Mumbai but the present day capital values give a very low lease rental yield.
In India, the home loan rates are around 10.25 to 11% whereas in other parts of the world the same are 2 to 4 percent.
The lease rent yields overseas enable an automatic mortgage payout and it is far easier to link your EMI to your Rent without being out of pocket.