3 Alternative Investment Ideas That Will Work For Tamil Nadu-Based Investors

If you are planning to buy property in Tamil Nadu and a regular 2BHK or a 3BHK near an information technology corridor is not really your thing, you would not find yourself limited by your alternatives. You investment in senior housing and student housing could prove to be great options to earn a good rental income.

Healthcare and housing

Take the example of Mohan Shastri. The Chennai-based man let out his 3BHK unit at Sowcarpet to Raghav Iyer’s, who need a house for short term because a family member was being treated in a nearby hospital. The Iyer’s agreed to a monthly rent of Rs 30,000 which was far less than the hospital’s room rent of Rs 2,500 per day. Shastri also owns another property in Vellore which is also let out for short-term stays.

In and around medical hubs of India, this is a viable investment strategy. Chennai in fact is the top city when it comes to medical tourism and investors can make the most of the opportunity.

Do note that you must have necessary lease agreements in place to rent your property like this. Also, it is your responsibility to cross check the real identity of whom you are letting in your house.

Student housing

A large number of youngsters migrate to Tamil Nadu and different cities in the state every year. Census 2011 showed that about 8.6 per cent of youngsters aged between 15-19 years are in Tiruchirapalli. Salem has another 8.5 per cent, Madurai 8.1 per cent, Chennai has 7.8 per cent while Coimbatore has 7.1 per cent.

There is an opportunity here for investors.

The state produces over four lakh engineering and polytechnic students. Besides, there are numerous arts, humanities and liberal arts colleges as well. Many of these educational institutions do not have the lodging capacity for all the outstation students who come to them. It is a good opportunity for anyone looking at earning a rent between Rs 3,000-25,000 monthly. Rents would depend upon the kind of amenities you are willing to provide. Facilities like provision for home-cooked food, air-conditioned rooms, bathrooms for exclusive use, power backup, 24/7 safety, kitchen for self-use, furnished rooms, etc., can go a long way to ensure healthy monetary returns.

On the contrary, if you have a small unit where you cannot provide elaborate facilities, you should be able to garner anywhere between Rs 3,000-10,000 per month. Much depends on the location of your property. Sometimes, tenants overlook facilities if the location is convenient and helps save up on the commute costs.

Senior living

Developers across Indian cities have been diversifying. With the number of people who are aspiring for a better lifestyle and facilities at their beck and call, the ageing population wouldn’t mind downsizing or upgrading their current households in return for personal care and attention. These homes take care of the diet, social life and personal needs of seniors.

As of now, senior housing is not a widespread concept because the price points are still unaffordable for many. Many others are still rooted to the joint family system of living together which may be another hindrance. Senior homes are meant for people above the age of 55 and thus there is limited audience that senior housing can cater to. If you are looking at an affordable offering for seniors or can customise your home to be elderly-friendly, there are chances that this may yield well. To cut down on your costs, ensure that your property is close to medical centres.