Second Property Rental Income: Illusion or Reality? Know the Bitter Truth!

• Indian rental yields are low, typically 2-3% of property cost, often less than bank FDs or mutual funds.
• Vacancy risk is significant; properties can remain empty for months, incurring maintenance, society fees, and taxes without income.
• Rental income is taxable, and the 'deemed rental income' rule taxes vacant second properties as if they were rented.
• Emotional attachment often drives second property purchases, but practical financial analysis reveals low returns and high costs.
• For income generation, alternatives like mutual funds, bonds, or REITs may offer better returns than a second rental property.

Why It Matters: Second property rental income in India often yields low returns with high risks and tax burdens, making other investments more profitable.