20-25% returns? How investing in ATM space can make you rich through real estate sector
With an investment of Rs 8-9 lakh, one can expect a return to the tune of 20-25 per cent per annum, subject to the location and city where the investment has been made.
Amid continued sluggishness in the Indian real estate market, realty investors are either moving to other sector or keeping their money chested with them. However, industry insiders are of the opinion that an investment in ATM (Automated Teller Machine) space is a better option these days. An investor can buy an ATM space by investing around Rs 7.5 lakh to Rs 9 lakh and lease it out to any bank for as long as he or she wants. Experts say the banks are giving monthly rent at around Rs 15,000 for the ATM space means at least Rs 1.8 lakh per annum. If you add the appreciation coming in into the ATM property, an investor can pocket at least Rs 2 to Rs 2.25 lakh per annum easily.
Commenting on the investment in the ATM space Ankur Dhawan, Chief Investment Officer at PropTiger told Zee Business Online, "The ATM space is available at the cost of Rs 7.5 lakh to Rs 9 lakh depending upon the location and cities. In Delhi-NCR it is available at around Rs 8 lakh while in Mumbai it costs around Rs 9 lakh." He said that it cost around Rs 7.5 lakh in Bengaluru, Chennai and Hyderabad but when it comes to returning, a bank is giving at least Rs 15,000 per month to the ATM space owner. apart from that, they make such an agreement where time to time rental appreciation is also mentioned.
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the PropTiger CIO went on to add, "If you add the price appreciation to the ATM space, one can easily pocket around Rs 2 lakh to Rs 2.25 lakh per annum on his or her investment in ATM. Remember, the investor in such a segment is not a big pocket-sized investor. So, a return of 20-25 per cent per annum is not a bad option, especially when it is risk and hassle-free investment." However, he said that the supply of the ATM space is quite limited and that makes it an attractive investment option.
Elaborating upon the further benefits of ATM investment Sagar Saxena, Project Head, Spectrum Metro said, "Giving space to ATM is a good investment option for people as you are sure of the return that you will get from it regularly. For example, if you buy a residential property then your investment is blocked or you will get a certain amount as rent on one property. But in that same amount, one can buy three smaller spaces in commercial property that can be rented out to banks for ATMs. In this manner, the investor will get rent from three sources and has the option of selling out the properties when prices appreciate. So even in the present scenario getting a commercial space and given to ATM usage is a far better investment option for people who are looking for a steady source of income from their real estate investment."