Property Appreciation does not help Passive Income

Query: You did not calculate property appreciation in returns.--from interview in Wint Wealth channel.
 The core idea of the interview was to describe how income from investments
 are used to fund living expenses. This implies a cash flow required, from the
 investments made, which do not require any active fund management. Thus,
 they can be termed as passive income.

 The fixed assets, property, provide income in form of rentals from the tenants
 occupying the property. This rent value does not change with the fluctuation in
 the property prices. It is often dictated by the increase in rental values over the
 whole area. As such the rental income is not determined by the property value
 appreciation.

 Any increase in the property value is notional or book prfits. One will not be
 able to enjoy this increase unless the property is sold off. But in this case, the
 rental income will stop. One cannot just sell off a part of the property so that
 the appreciation value can be taken out.

 The topic of the interview was around current expenses required for living and
 how this is funded from the investment income flowing in. Hence, the property
 appreciation was not included in the return of the calculation.

 I have covered this in more detail in Chapter 10: Rental Asset in my book. You will
 find the link to website in the description of the video


Kindly note: I am NOT a SEBI registered advisor. Views expressed are based on my personal experience and learnings. They are stated for educational purpose. Kindly take advice of your financial advisor before taking any action with your money or investment.