Asset LeasingAre you interested in Asset Leasing? Do you wish to develop a passive income stream? Discover here what OwnersTown’s Asset Leasing is all about.

A lease is a simple contract under which the lessee(user) makes regular payments to the lessor(owner) in exchange for the use of an asset over a defined period of time. The most common assets leased are buildings, vehicles and equipment.

Consider the following example of you and three of your friends(lessors) investing together in bikes that were then leased out to restaurants(lessees/users), who would pay a certain monthly rental to all of you. That is how simple the process is.

Asset leasing enables you to invest in real assets like furniture, motorcycles, vehicles, etc. These assets are leased to corporates with outstanding business fundamentals and robust balance sheets. By investing in non-market-related assets you can obtain a regular monthly income.

Monthly recurring payments are by pre-agreed terms of the lease. Investors receive up to 12% (post-tax) with this opportunity. Asset Leasing delivers higher returns when compared to many other traditional investment options, including Fixed Deposits.

Who should consider Asset Leasing?

The unique investment option offered by OwnersTown is suitable for anyone wishing to diversify their portfolio with a non-market-related asset.

Asset Leasing gives stability to an investor through monthly payments of Capital + Interest. These flexible repayment cycles enable an investor to boost his CAGR

Compound annual growth rate (CAGR) is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each period of the investment’s life span.

Why invest in Asset Leasing?

Here are a few reasons for investors to understand the advantages of investing in Asset Leasing –

  1. Tax Benefits

Almost everyone is seeking to see their taxes reduced, and leasing is an excellent way to do so. Incorporating the general tax rules for leases into finance leases means that rental payments are fully deductible to the lessor and accessible to the lessee while the lessor can claim any accumulated capital allowances.

While tax-exempt mutual funds such as an ELSS fund provide tax benefits, these are risky funds. This is where investing in asset leasing comes in as a savior.

  1. Less volatile than the stock market

Leasing provides you with more stability because your returns are based on a steady system rather than the market. This allows you to invest in both the long term and the short term. And by investing in both the short-term and the long-term, you are able to maximize your return on investment.

  1. High Returns

As Asset Leasing is relatively more stable, the rate of returns is high. It also provides the investors with a decent amount of security which is a huge bonus. Especially, when you invest with OwnersTown, your returns are likely to exceed 19-21% IRR.

  1. Best to meet your short term financial goals

Asset Leasing is a great investment option for investors who have just started their career and are willing to invest for a period of 1.5-4 years to meet their short-term financial goals.

  1. Strong Collateral

Strong collateral protects the money you invest as a lessee. That means you’re investing in a secure and reliable asset. When an asset is strong, your investment will be more secure.

Consider this. Investing in big apartments would be a stronger choice than tiny concrete houses. That’s one of the reasons people get stable returns on their investments!

These were a few general advantages of investing in Asset leasing but when you invest with reputed platforms like OwnersTown, there are added advantages to that!

Advantages of Investing in Asset Leasing with OwnersTown

  1. Backed by Tangible assets

In terms of your capital, it is at low risk, because it is backed by tangible assets. Even if the corporation defaults in payment, these assets can be sold in the market for a slightly depreciated rate.

And returns exceed 19-21% IRR, which makes it a high-quality investment.

  1. You can Start Small

It is a misconception that you need to be rich in order to invest. OwnersTown enables you to start investing in asset leasing with just a minimum sum of Rs. 20,000.

  1. Co-invest easily

Asset Leasing allows you to invest in an asset as a fractional owner also. So henceforth whatever the returns are, they will be shared amongst the investors.

  1. Mitigate risk by diversifying

It’s always a good idea to have a variety of financial instruments in your portfolio to ensure a healthy balance. If you have riskier assets in your portfolio, such as stocks and mutual funds, leasing offers you that equilibrium and is a good balancing factor. It also is more secure hence ensuring good returns.

To Sum it Up

Investing in asset leasing is an advisable option. It is a terrific approach for investors to diversify their wealth into assets they enjoy, with various advantages added to it!

Visit our app or website for more queries. You may also organize a one-on-one call with our consultants to obtain an insight into asset leasing and all the other investment alternatives available as well!