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How To Make The Most Of Your Idle Property?

By Author: Aishwarya Mahurkar
Total Articles: 291

Purchasing property is an expensive decision wherein one cannot take it impulsively or lightly. Such an asset can be very useful, especially as a form of income as collateral in a loan against property. Once the property has been purchased, it must be utilized appropriately, else it will be a drain on one’s savings over the long run. Without proper prior planning, such a property will lie without being utilized. Here are a few tips one can follow to develop such a property into a valuable asset:

Renovate it

Contrary to the belief, a penny saved is not a penny earned in all cases. In the case of a purchased property that is lying idle, it is not completely utilized to its potential. One way to make the most of your investment is to improve it. You can renovate your current property to increase its value in the real estate market. In this way, it makes for a great investment as a heritance property or even as a collateral in the loan against property. However, before such a step is taken, the property must undergo valuation by a credible source to ensure that the value of the property increases to its optimum value. One can contact a contractor or an architect to make the necessary renovations to increase the asset value.

Lease it out on rent

The second best option to utilize your idle property is by earning income out of it. One way of doing so is by leasing it out on rent. While one may not get a substantial income out of this project to match the buying price of the property, it still makes for an essential income. As a owner of the property, an individual can control the income that is generated from the property, regardless of the current market pricing. But there are certain risks to this venture. There is a possibility of damage to the property or the tenants posing other problems. In such a case, the owner must have a backup plan for such situations, to ensure that his investment is well protected in the long run.

Take a loan against the property

While the property alone will stand as an asset, the value of it makes for a great collateral. If an individual requires a large funding, but does not want to give up ownership of his property, getting a loan against property is one way of getting the required funds. The value of the property will first be evaluated, before the principle loan amount is prearranged. One can get anywhere in between 70% to 90% of the actual property value, if all the documentation and papers are cleared.

Investing in a property will provide one with a lot of benefits. Right from addition to the personal net value, to income generating or collateral in loan against property, such property makes for a great value especially when utilized to its full potential. Before an individual purchases a property, he must first plan how to utilize its value to one’s advantage in the long run.

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 Home improvement / renovation loan, loan against property.

Total Views: 112Word Count: 548See All articles From Author

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