About Real Estate Investment
Loanpao’s real estate investment options include residential properties, commercial spaces, and land plots, offering potential for capital appreciation (7–10% p.a.) and rental income (2–5% p.a.). Ideal for investors seeking tangible assets and portfolio diversification in India’s growing property market.
Why Choose Real Estate?
- Appreciation: Historical 7–10% annual growth in urban areas
- Rental Income: 2–5% annual yield from leasing
- Tangible Asset: Physical property with intrinsic value
- Diversification: Low correlation with stocks and bonds
- Tax Benefits: Home loan interest (Section 24) and principal (Section 80C) deductions
- Financing: Home loans up to 80–90% of property value
- Hedge Against Inflation: Property values often rise with inflation
Are You Eligible?
| Criteria | Requirement |
|---|---|
| Applicant Type | Indian resident (individuals, HUFs, NRIs with restrictions) |
| Age | 18+ (21+ for home loans) |
| KYC Compliance | Mandatory for property purchase |
| Financial Capacity | Sufficient funds or loan eligibility (income, credit score) |
| Investment | Minimum ₹10 lakh (varies by location/property) |
What Documents Do You Need?
- KYC: Aadhaar, PAN, or passport
- Address Proof: Utility bill or rental agreement
- Income Proof: Salary slips, ITR, bank statements (for loans)
- Property Documents: Sale agreement, title deed, encumbrance certificate
- Bank Details: Cancelled cheque or bank statement
- Photograph: Passport-size
Indicative Returns
| Investment (₹) | Tenure | Appreciation Rate | Future Value (₹) | Rental Yield | Annual Rent (₹) |
|---|---|---|---|---|---|
| 50,00,000 | 10 years | 7% p.a. | ~98,36,000 | 3% | 1,50,000 |
| 50,00,000 | 10 years | 10% p.a. | ~1,29,69,000 | 4% | 2,00,000 |
| 1,00,00,000 | 15 years | 8% p.a. | ~3,17,22,000 | 3% | 3,00,000 |
Extra Charges:
- Registration/Stamp Duty: 5–7% of property value
- Maintenance: ₹1,000–₹5,000/month (for apartments)
- Brokerage: 1–2% of property value
- Taxes: Property tax, GST on under-construction properties
Note: Returns are illustrative, based on historical urban trends (7–10% appreciation, 2–5% yield). Actual returns vary by location, property type, and market conditions.
Calculate Your Returns
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How to Invest in Real Estate
- Research properties on loanpao.in or consult real estate agents.
- Assess location, developer reputation, and growth potential.
- Complete KYC and arrange financing (e.g., home loan via Loanpao).
- Verify property documents (title deed, approvals, encumbrance).
- Sign sale agreement and pay stamp duty/registration fees.
- Lease property for rental income or hold for appreciation.
- Monitor market trends and property maintenance.
Common Questions About Real Estate
What is real estate investment?
Buying properties (residential, commercial, or land) for capital appreciation or rental income.
Are real estate returns guaranteed?
No, returns depend on market conditions, location, and property type, with risks of illiquidity and price drops.
What is the minimum investment?
₹10 lakh for budget properties in Tier-2/3 cities; higher in metros (₹50 lakh+).
Can NRIs invest in real estate?
Yes, NRIs can invest in residential/commercial properties (not agricultural land) via NRE/NRO accounts, subject to RBI rules.
What are the tax benefits?
Home loan interest (up to ₹2 lakh under Section 24) and principal (up to ₹1.5 lakh under Section 80C); LTCG tax at 12.5% after 2 years.
What are the risks?
Market fluctuations, illiquidity, legal disputes, and high transaction costs (stamp duty, registration).
How does financing work?
Home loans cover 80–90% of property value, with EMIs based on income and credit score, available via Loanpao.