Archive · 7 Aug 2025
Financial Planner Warns Against Real Estate for Passive Income
A financial planner named Kirtan Shah is cautioning people about using real estate to make money without working.
He says it's riskier and doesn't pay as well as many think.
If you spend a lot of money on a house to rent out, you might only make a little bit of money each year, around 3%.
He also explains that you have to pay taxes on the money you make from rent and that it's hard to quickly sell just a part of a property.
Plus, over the last ten years, real estate hasn't made a lot of money for investors.
Shah believes that buying property for rental income is not a good idea.
Financial planner Kirtan Shah warns against real estate for passive income.
A ₹4 crore property generating ₹1 lakh monthly rent yields only 3% annually.
Rental income is taxable and the property is illiquid.
Real estate returns averaged 4% over the last decade.
Shah advises against investing in property for rental income.
- Who
- Kirtan Shah, a certified financial planner, and prospective investors.
- What
- Financial planner Kirtan Shah warns against using real estate for passive income.
- When
- Recent data shows real estate returns averaging 4% over the last decade.
- Where
- Gurgaon and Bangalore are mentioned as examples of property markets.
- Why
- Shah believes real estate has more risk and less reward than people realize for passive income.
Financial Planner's View
Not Available
Risk Assessment
Financial Planner's View
Real estate investment involves high risks like property taxes, vacancy, and maintenance.
Not Available
The article doesn't represent a counterpoint.
Return Expectations
Financial Planner's View
Real estate offers lower returns than people commonly believe.
Not Available
The article doesn't represent a counterpoint.
- Financial Planner
- Kirtan Shah
- Investment Advised Against
- Real estate for passive income
- Property Cost
- ₹4 crore
- Monthly Rent
- ₹1 lakh
- Annual Yield
- 3%
- Average Real Estate Returns (past decade)
- 4%