By: kaikini

kaikini — Mon, 10 Aug 2009 02:36:35 +0000

Since you own a 2BedRoom Flat…. and are willing to live in Rented 3BR House…Its a wise commercial decision..
Do not sell your flat.
Look for Tenant for 3 Years lease offer for your Flat.
The Rental commanded per month in your area is the basis of arriving at the value you should look for a 3Year Term deposit.[ e.g. say Rate of monthly rent of your 2BR Flat is Rs.8000/- (Rs. can be replaced by value in your local currency) and The Deposit Rate of Your Bank for 3 years Fixed Depositis say 10% (this is dependent on policy of banking deposits at your location). Then to fetch equivalent LEASE DEPOSIT Sum from your Lessee tenant shall be:
(Rs.8000 X 12 months) divided by 0.10 ( 10% ROI on Deposit Terms)
= Rs.9,60,000....say Rs 1 Million.
Do not expect any monthly payment from your Lessee for 36months and agree to refund Rs.1Million back to lessee when he vacates.
He will be happy to park money in your Bank and enjoy renting your Flat for three years free of any cost on rent account.
You will Earn the Actual Rate of Interest (ROI) from your Bank for Rs.1M deposited for 3 years with ROI agreed. That's the equivalent of Rent you will have for your expenses on rental of 3 terms extensions of one year rental agreement with owner of 3BR House you wish to live in on Rental Terms..
Now for your living in 3BR House offer 36 Months yearly revolving Bank Guarantee for You to offer Deposit to your Landlord for 3BR Home on Rent. This shall be contingent liability deposit based on Cash Deposit for Guarantee, in lieu, you give thro Bank to Landlord and pay Rent from Your Interest Returns negotiated at the lower rate than Bank rate of Monthly interest (you earn on Rs.1M Deposit.from Bank per month).
You will notice that you will " Have a Cake and Eat it Too" as all the way WIN WIN Situation with You as Happy Landlord, You as Happy Rentee[ absorbing marginal increase in your pay off on rent account and BG Charges etc., over interest earned] and You as Depositor as well as You as Borrower from Bank with your Tenant’s money, where your Tenant is also Happy for No Expenditure and Return of his Money Safely thro’ Bank transaction..
In case your Rental for 3BR House is much more than your monthly Interest earnings…then Reduce BG Guarantee for 10% value of Rental for 36 months and enjoy the 90% value free of lien for your Multiplying Money from Banks Money borrowed asap
This is free advice Practical,Most Appropriate and Valued;
if you understand Economics and NEEDS with Supply -Demand Situations in your Location for Housing.
Do get back to me if you adopt this WIN WIN proposal…practiced by intelligent Businessmen in INDIA.

Comments on: thinking of renting our flat out and maybe rent a house?

By: kaikini