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Different Strategies To Leverage Your Assets Forthe Optimal Return

By Author: Aishwarya Mahurkar
Total Articles: 291

Individuals aim for maximum return on the investment. While leveraging your assets for optimal returns, implement the best possible strategy. So, you should have access to multiple ways to leverage these assets. For example; if you have a property, you can rent it or take out a loan against property. Some may opt for a loan against property and rent at a same time. It is your choice based on your requirement. So, what are the choices available?


Borrow:


Most lenders will allow you to borrow against the assets. Consider a loan against property, gold, equities, fixed deposits, PPF, salary, life insurance policies,etc. You need to select the right strategy based on available assets and required funds.


For example:


If an individual wants to fund a wedding or overseas education, a personal loan or a loan against fixed deposit won’t be enough. You have to avail loan against property in India. Based on loan to value ratio and cost of real estate, loan against property interest rates, LAP can be the right choice in India. But, is the principal amount enough to the current requirement?


Sell:


Loan against property in India won’t be equivalent to a total cost of a property. Based on the market value of property and loan to value ratio, you can receive 55% to 65% of cost as a loan. So, if that doesn’t seem enough, you can sell the property. Same is applicable for equities, fixed deposits, mutual funds, gold and other assets. However, certain assets can be resolved completely or partially. Properties do not have that advantage. But, you can select to sell the assets to meet the current requirements. It’s called profit booking in the stock market or partial withdrawal in fixed deposits. So, it’s vital to fine-tune it to match your requirement.


Lease:


You can rent out your property. Renting option is available for commercial, residential and industrial properties only. But, you can give it on lease while you have availed a loan against property. So, this combination can be a rewarding way to optimize returns on a property.

These leveraging strategies allow individuals to resolve financial and personal issues by generating funds. But, it isn’t simple. For example, while availing loan against property, interest rates have to be taken into account. They will impact EMI and monthly cash flow. So, take LTV, interest rate, processing time, eligibility criteria, and EMI into account. You will also need to keep track of few factors while selling and leasing your assets for returns too. That is the best way to select right asset for selling or renting.

Author Bio :

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the different types of home loan products such as loan against property interest rate, Home improvement / renovation loan, loan against property.

Total Views: 125Word Count: 477See All articles From Author

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