Investing Vs Renting Out Houses

  Can You Buy 10 Houses With Just 25 Lakhs?

It may sound like a fake promise .When it comes to making our money work for us, there are different paths to choose from. In this article, we’ll look at two ways: buying houses to rent out and investing money. Let’s see which one might be a smarter move.

Scenario 1: Renting Out Houses

Imagine you spend 25 lakhs to buy a house, and you want to make money by renting them out. Assuming you will get rent of 6250 rupees per month. Over 10 years, with a yearly profit of 3%, your 25 lakhs turns into 33 lakhs. It’s like a slow and steady climb, but is this the best way to grow your money?

Scenario 2: Smart Investing

Now, picture another person who takes the same 25 lakhs and invests it wisely (Buying and selling yearly basis). Over the same 10 years, with an average yearly return of 25%, their 25 lakhs skyrockets to a whopping 2.3 crores.

Let’s see the comparison and decide for yourself which is more smarter for you!

Yearly Profit:

• Renting houses gives a small profit each year (around 3%).

• Investing money makes a much bigger profit every year (25%), leading to a faster increase in wealth.

Year-End Value:

• Renting houses ends up with 33 lakhs after 10 years.

• Investing turns 25 lakhs into a massive 2.3 crores in the same time.

Risk and Diversification:

• House prices can be uncertain and might change because of different factors.

• Investing spreads the money in different areas, reducing the risk and making the growth more stable. 

So, what does this mean? Well, it shows that investing can be a super effective way to make your money grow. While renting out houses can be nice, putting your money in smarter investments can make it grow faster and be more secure. The key is to use technology , make smart choices, and let the power of growing your money over time do its thing. In the world of money, it’s like choosing a path that leads to a brighter and more secure future. 

Coming to answer the question – If you buy a house and rent out now with the money you have, you may end up in having only one house in 10 year time, But if you decide to invest smartly with advisory solutions like 25CentAI you may end up accumulating 2.5 Crores in 10 years and you will be able to buy 10 houses with that much money –  if you still want to rent out ):-