Investing in real estate has always been a trusted path to financial security. But what if your investment could not only provide steady rental income but also pave the way to long-term wealth? At Travish, we offer you the unique opportunity to earn rental income from our fractional ownership properties while enjoying luxurious holiday stays. In this blog, we’ll explore how investing the rental income you receive from Travish into a Systematic Investment Plan (SIP) can grow to over 8 crores in 25 years. This can help you in achieving financial freedom faster and early retirement.
Understanding SIP
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds. It’s a disciplined way to build wealth over time, leveraging the power of compounding. Even small, regular investments can grow significantly over a long period.
Rental Income from Travish
When you invest in fractional ownership through Travish, you receive a guaranteed rental income. For instance, let's assume you receive Rs. 22,875 per month for a 2 BHK apartment with an investment of Rs.45,75,000. If you invest this rental income into an SIP, you can unlock substantial growth over time.
The Power of Compounding
The magic of SIP lies in compounding. By reinvesting your earnings, you earn returns on both your initial investment and the accumulated returns from prior periods. This exponential growth can turn modest investments into significant wealth.
Example Calculation
Let's break it down with a simple example:
Monthly Rental Income from Travish: Rs. 22,875 with 15% increase every 3 year
Monthly SIP Investment: Full rental receipts along with the increase every 3 year
Expected Annual Return Rate on SIP: 15%
Investment Duration: 25 years
Using an excel sheet calculation, we find that investing Rs. 22,875 per month with 15% increase every 3 year at an annual return rate of 15% for 25 years would grow to Rs. 8.21 crore.
Here’s how it works:
Total Investment Over 25 Years: Rs. 1,21,43,737
Total Value at 15% Annual Return: Approximately Rs. 8,21,34,977
This calculation shows that with regular SIP investments, your rental income from Travish can grow significantly, providing you with over 8.21 crores in 25 years.
Benefits of Combining Real Estate and SIP
Dual Income Streams: By investing in Travish, you earn rental income and enjoy free holiday stays. Investing your rental income into an SIP adds another layer of financial growth.
Wealth Creation: The compounding effect of SIP ensures that your investments grow exponentially over time.
Financial Freedom: Combining the stability of real estate income with the high returns of mutual funds helps secure your financial future and achieve financial freedom faster. You can retire earlier.
Comments