Key Points
Generally, in India we have this mind set and a preference towards physical assets whether it is real estate or whether it is gold and we believe that the physical assets not only give us capital appreciation but something like a real estate also give us a regular rental income and that is the reason we are inclined towards real estate...
So, retired people should really reconsider putting their entire EPF money into buying real estate in the hope of getting a good rental income...
It is not necessary that a retiree plans that way but even someone who is investing heavily or maybe has an investment portfolio and for diversification has real estate as an asset class, do you think rental income can be good?..
Once your need for the primary house is done, once you are saving enough for your key goals, retirement, kids education in case if you are in that age bracket and if you have any surplus, then you can look at real estate as one of the options where you put in an investment and you are looking at the rental income...
So, if you have your overall asset allocation in mind where you know that this is my investment which will go towards growing assets, a small portion will go towards capital preservation given the age and the life stage, you can also consider real estate as an option for rental income..
