Real estate investments can provide higher returns than stocks and bonds through various means. Rental returns on properties provide income, while appreciation over time and inflation lead to increased property values. Leveraging allows investors to purchase multiple properties with a down payment on one, increasing returns. Paying down loans over time frees up equity that can be used to purchase more properties. Repairing and improving properties can raise their values above the costs. Overall, real estate offers diverse income streams not found with other asset types.

1. How to
make real
estate
investments
beneficial?

2. Investing in stocks, mutual funds and
bonds yield returns for sure, but the
risk involved is too high and returns
are too low. If there are higher
returns they are riskier and the safer
bonds yield lower returns. That’s how
real estate investors have figured out
attractive returns on account of
multiple income streams out of the
real estate investments. Let’s have a
look at some of the ways, how real
estate can benefit your portfolio:
How to make real estate
investments beneficial?

3. Rental returns
A percentage of rental return earned can be
calculated either on net basis or gross. There
are experienced investors who calculate the
net rental return which includes the expenses,
taxes and all the other costs into account while
dividing the property value. This doesn’t take
mortgage payments into consideration and
hence could be a negative cash flow. Because
of this, there are many investors who look at
cash-on-cash rental 0return. This is still only
one of the ways to get returns on real estate
investment that exceeds average stock and
bond dividend returns.

4. The second and traditionally proven
way of real estate investment return
is the appreciation in value of a
rental property in accordance to
inflation. This means selling the
property and reinvesting in higher
priced property or giving an equity
line of credit to use for other
investments.
Appreciation in
property value

5. The rental income increases with inflation but
the mortgage payment on the rental property
remains constant. Hence there is an increase
in the cash flow without any added expense for
holding the property. Now when inflation rises,
it adds to the number of renters because
mortgages become very expensive for average
customers. This is exactly how rentals escalate
as more number of renters increase the
demand!
Inflation

6. Leveraging
By leveraging, one can buy properties that yields
good rentals. You can use the fund in buying three
properties with down payments instead of one and
can greatly increase the return on investment. It is
all about leveraging which does involve risk, but
successful investors must comprehend how it
impacts their investments in real estate.

7. Amortization
7
By paying off the loans, you can
increase the leverage by liberating more
investment resources. You can also use
increased equity of one property to
liberalise fund to invest in other options.

8. Property repair and
improvement
There are investors who would knowingly
purchase a property at the cost price which
has a few lacking points or can do
improvements and repairs on it. They have
already calculated the value of repairs and
improvements which certainly exceeds costs
but along with it also results to increase in
equity.
As explained above, real estate investments
can fetch multi-faceted investment returns
unlike the stocks and bonds which involve only
value appreciation potential and have low
interest or dividend income.

9. Get in touch with us for anything,
that’s real estate!
M: +91-9099968036 L: +91-79-40092424 | E: info@therealestateconnect.com |
www.therealestateconnect.com
202 Samaan II, Opp. Shell Petrol Pump, Prahladnagar Road, Ahmedabad 380015
M: +91-9099968036 L: +91-79-40092424 | E: info@therealestateconnect.com | www.therealestateconnect.com
202 Samaan II, Opp. Shell Petrol Pump, Prahladnagar Road, Ahmedabad 380015

10. Get in touch with us for anything,
that’s real estate!
M: +91-9099968036 L: +91-79-40092424 | E: info@therealestateconnect.com |
www.therealestateconnect.com
202 Samaan II, Opp. Shell Petrol Pump, Prahladnagar Road, Ahmedabad 380015
M: +91-9099968036 L: +91-79-40092424 | E: info@therealestateconnect.com | www.therealestateconnect.com
202 Samaan II, Opp. Shell Petrol Pump, Prahladnagar Road, Ahmedabad 380015