A look at my blog makes me wonder that you must be wondering that this woman only wonders about movies! Wonderful but that's not true. My job extracts a lot more than just watching movies. Not that I mind it :P

Anyway, that includes walking on fire & glass, bending steel bars, breaking a wooden board. Supercool no?

Nah, I haven't joined any self-defense class yet. I have mastered that art already ;-) It's a corporate training session by Priya Kumar. Now why would employees do all these stunts?

To release mental stress, unblock constricted energy, create greater sensitivity, enhance your relationships and add to your health.

Breaking the board with focus, bending the steel bar with commitment and walking on the fire with confidence. I could do all the tasks except breaking the board. Does that say something? Yes, just that I need to work out :P Also, the focus is missing ;-)

Of all, I enjoyed firewalking the most. You must be wondering how can someone walk on the fire and come out unhurt?

Here it goes: "Fire is a tool of transformation. It is an element of prayer. Firewalking converts your fears into powers. When someone approaches a task, any task with full attention, focus and intention, they emerge bigger than that task or situation. But if they are not paying attention or are not focussed or approach life unintentionally then that is when accidents happen. Intention is a very powerful tool in creation," Says Corporate Trainer Priya Kumar.

And all this is to go beyond your limits and overcome your FEARS. If you can walk on fire, there is practically nothing which you cannot do!

Watch this video till the end.

FYI: Love is a sign of creation and fear is a sign of destruction. When the person is in love, he is happy, positive and always smiling. At the same time, its fear that leads to all negativities. Fall in love and fall out of fears. Spread positive vibes and shun the negative ones!

 By Kamiya Jani for Wealth

Increasing weight.
Don't wanna go gyming?
Indulge in swimming!

Fashion designer Meera Mittal hums this tune -- because she prefers swimming over any other fitness programme. She says, "I really enjoy it. No sweating and excessive fatigue as I have experienced when working out at the gym. I am out in the open and not in an air-conditioned environment."

However, it's not like she directly took up swimming. First, she tried the gym.

"My gym membership cost me Rs 23,000 for a year, which I eventually wasted. I did not enjoy the activity and ended up bunking a lot!"

She did not lose any weight. So, Meera literally wasted Rs 23,000. Besides, according to her, swimming is relatively easy on the joints and muscles and also keeps one fit and flexible.

Meera absolutely loves swimming and her never ending list of advantages says it all. "It also helps me relieve stress. It's more about learning and perfecting a skill as opposed to simply repeating movements on a machine. I'm sure you can tell I hate working out at the gym."

Yeah, that's evident!

Meera has been swimming for the past three months and she has already lost five kilogrammes. But there are no free lunches. Let's see how much she has spent already.

Expenses	Per month (Rs)	Every quarter (Rs)
Club membership	1,333	4,000
Swimming costume	667	2,000
Swimming glares/cap	333	1,000
Travelling to and fro	1,500	4,500
Total	3,833	11,500

Amount spent: Rs 11,500
Kilogrammes lost: 5
Cost of losing one kilogramme: Rs 2,300

That's quite a lot! But Meera doesn't agree. To begin with, her swimming costume, goggles and cap, are a one-time expense. The cost could come down for the next few kilogrammes. Besides, she feels that swimming is the best form of physical exercise she has discovered so far, apart from dancing.

"Working out, within a natural element, and out in the sun is one of the healthiest ways I can think of exercising in a city. And getting a nice sun-kissed look is an added benefit!"

In the picture: Meera Mittal strikes a pose.

Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither the site nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.

Source: Wealth

Many working professionals today seem to be on a fitness and health drive -- you only need a look at the gyms in your city today to realise that. Great, but do you know how much you are really spending on fitness drive? We decided to ask a few people and do some quick math.

She can spend any amount to lose weight!

NAME: Priyanka Jethwani
Age: 22
What Priyanka does: Process Executive at at MNC bank

Priyanka often looked at herself in the mirror and sulked at the fact that she was not slim enough to fit into that little black dress which her colleagues often wore on Saturdays.

So she decided to join a gymnasium.

She went to a well-known gym only to find the membership fees were exorbitant. "I had read advertisements of various gyms claiming how people lost 15 kilogrammes to 20 kilogrammes in no time. I wanted to try it out, but wasn't sure if these were just advertisements to promote themselves or the truth. I thought over it for a couple of days before investing Rs 15,000 for a year," says Priyanka.

Juggling between gym and work, Priyanka worked out for five months with no difference in her weight.

"It was not very encouraging to see the weighing machine stuck at the same number for five months. I was not sure whether I would lose weight, but continued going to gym since I had paid for the whole year."

Then came the realisation: working out is great but it needs to be supplemented with the right diet to get into the right shape. "It took a long time for me to realise that dieting is as important as working out. By dieting, I don't mean starving but eating the right kind of food," she says.

She also enlisted a personal trainer. He helped her shed about 6 kg in two months. She says, "It was all worth it!"

Priyanka spent around Rs 70,000 (that is 40 per cent of her annual income), to lose that 6 kg. Here's how;

Expenses	Per month (Rs)	Per year (Rs)
Gym membership	1,250	15,000
Personal trainer	3,000	36,000
Gym wear – Track pants (4)		1,000
Tops (4)		800
Shoes + socks		1,600
Napkin		100
Water bottle		125
Protein Bar
Travel to and from gym	1,000	12,000
Massage	250	3,000
Total	5,800	6,962

Total amount spent in one year: Rs 69,625
Weight loss in one year: 6 kg
Cost of losing one kilogramme: Rs 11,604

That means Priyanka spent about Rs 11,000 to shed each kg!

That's the amount a person can survive on for a month; buy a new mobile phone or maybe an iPod, and use it for years!

Is spending Rs 1,000 per 100 grams really worth it?

"It did feel like a waste of money initially. Now, I think it is worth it. I know it is a bit too much. But if, at the end of the day, I look thinner and better, what more can I ask for?" smiles Priyanka.

She says life was hell for those few months when she was on a diet: "When I was cutting down on all my favourite food, I often wondered, is life only about looking good and not living it to the fullest? It was frustrating. I stopped going out for dinner with friends. I refrained from anything that might tempt me to eat fatty foods. But the results showed soon."

Let's check what Priyanka gave up for a hot bod:

Pizzas (Earlier, she would wake up to the smell of pizzas)
Rice (Her meal was incomplete without rice)
Potatoes (She thrived on them)
Chiken frankie (This was her evening snack)
Chinese food (She couldn't sleep without having Chicken Fried Rice and Chilly Chicken)
Egg yolk (She gifts herself only white egg now)
Value for money or not?
We asked fitness expert Leena Mogre whether this was really value for money. She says, "Going to the gym is not only about losing weight, but to stay fit. It should be part of your lifestyle. You brush your teeth and take a shower every day. Similarly, you must go to the gym every day."

We ask whether it is worth spending so much money at a gym. Mogre interrupts, "It is not spending, it is an investment you make for your health, to give you better returns tomorrow."

The story is not over yet!

It has been a year and three months since Priyanka has been working out. Over the last three months, she has gained the 3 kg she lost.

"My work pressure has increased because of which my workout schedules have been very irregular," says Priyanka.

That works out to Rs 15,000 spent over the last three months. And she has 3 kilogrammes added to show for it!

Priyanka now thinks there are smarter ways to save money:
i. Join a gym close to home or work
ii. Avoid extra costs, like frequent massages
iii. You don't need a personal trainer through the year.

What do YOU think? How much do you spend on your fitness? Do you think spending money on gyms is a necessary investment? Write to us , mentioning your name, age, profession and the city you reside in. We would love to hear from you!

Source: Wealth

Wealth spoke to a man who grew up wanting to become rich, but lost all that he had earned in a flash!

By Kamiya Jani

Name: Omprakash Chaudhary (name withheld on request)
Age: 73
Where I live: Mumbai
What I do: I used to work in a steel company. Now, retired and resting.

IT'S been eight years since Chaudhary lost Rs 35 lakh at the stock market, but he is still recovering from the loss. "The only thing that's churning in my mind is, I need to recover the money somehow, and pay back all creditors," he says. He had no idea how the markets work.

But his younger brother Narayan made good money. So why not him?

The first investment
In 1996, when Chaudhary was 62-years old, he made his first investment of Rs 40,000. He invested in Wipro, Infosys, Associated Cement Companies (ACC) and Gas Authority of India Ltd (GAIL).

"This was my strategy -- buy shares in the morning and as the price shot up, sell it the same day before the clock strikes 3.30 pm." His highest one day profit was Rs 30,000. This obviously encouraged him to invest more. It worked well for him. His younger brother, on the other hand, had invested for long term. He hardly did any day to day trading

The crash
"In 1999-2000, the IT sector went bust and I made huge losses. I would buy shares blindly and sell them in the evening. This habit was a big mistake. I was suffering a loss every day. Worse, I would sell it off before the markets closed."

Bogus companies
"My younger son would hear the buzz in the market. Little did he know that bogus companies called 'Ahmedabadi companies' were doing the rounds. It seems the promoters were from Ahmedabad and they knew the drawbacks of the stock market."

"We would buy their shares when the rates had already increased. Then suddenly, these companies would shut down and take off with all the stocks from the market," he shares. Chaudhary had already lost Rs 10 lakh.

Borrowing to invest
Then came a time when he realised there was no money left to invest. "I started borrowing money from others to recover my losses. This did not help. By then, I owed Rs 25 lakh." He borrowed Rs 20 lakh from his younger brother and Rs 5 lakh from a friend. By now, his creditors refused to lend him more money. Today, he is 73 and still trying to pay back his creditors. He has not been able to return his debt to any of his creditors.

Is the stock market for rich people?
Chaudhary believes that investing in equities is a good idea for those who have lots of money. So, even if you lose, there is no problem.

Chaudhary is now back to the stock market with a ray of hope in his heart. He has invested in two stocks -- Rana Sugar and Maharaja Shree -- but their prices have reduced to half in the last two years.

He does not favour his sons getting into the stock market. He says, "The stock market is no different than gambling!"

We spoke to Yogesh Chabbria, founder of GSIFS.com about Chaudhary and his first thought was that Chaudhary viewed the stock market as a gamble and not an investment. Well, here is Yogesh advice.

Rule number 1: No day trading
It is a proven fact that those who indulge in day trading, either lose lots of money or they go bankrupt.

For any company to prove itself, it takes at least two years. If you are a farmer who wants to grow mangoes, you sow mango seeds on your farm. Next day, your friend tells you oranges will do better. You replace the mango seeds with orange seeds.

The day after, another friend suggests apples are the best bet. So you sow apple seeds.

In the process, all your money is spent on seeds, fertilisers and other raw materials with no fruit at all. To enjoy fruits, you will have to wait for at least two years.

To cut a long story short, day trading has not done anything better for anyone.

Rule number 2: Invest in knowledge
All you need to get into stock market is basic common sense. Buy stocks of a company only if you see their products on streets.

If you are planning to invest in a Maruti car, check whether there are Maruti cars running on the streets. If people like the product, it means the company will do good and will give good returns.

Since Chaudhary was working in a steel company, he could have any steel company because he has the knowledge of the same. Cement and steel is definitely required for so many constructions coming up.

Use simple logic and invest in companies you have heard of. People try hard finding companies. Invest in simple companies whose operations you can easily understand.

Rule number 3: Ignore rumours!
If you are confident about the company you have invested in, leave it. Ignore rumours.

Rule number 4: You do not need crores
It's a myth that you need lots of money to start investing. If Chaudhary had stayed invested with Rs 10,000 in Infosys in the beginning, today it would have been worth nearly a crore."

Similarly, today, even if you are investing a small amount in a company you are confident of, it is sure to grow a lot more after ten years.

Rule number 5: Get professional help
Often, in the haste to get rich fast, we lose patience and make some wrong decisions. Remember, there is always a doctor for your finances, whose advice is medicine for your money.

The choice is yours!

Source: Wealth

Parsis! A lot has been said about them. Their food, their anger, their wit, their love for antics and their madness for cars :-)

Experienced them all in a span of three days. Met the three most interesting Parsis.

Jiny Dinshaw; owns a Rover since 1948. Her dad gifted this car to her when she was 18. A violinist by profession, Jiny, who is now 80, is married to her Violin and Rover. Pretty smile, glowing skin and a wrinkled face, she looks beautiful.

Dinyar Jamshedji; cleans his car with a toothbrush. Well, all of them do, only he spoke about it:-) Composed, patient and funny, this bawaji is really sweet. Owns a Rolls Royce since 1974 but this was made in 1938, which makes the elegant looking car 80 years old. But you have to see the way DJ has maintained her. Hats off to you sir!

Firoz Mehta; besides being eccentric about his car, he's a born flirt. Owns a Morris since 1954. Loves and cares for her as much as for his wife. To be honest, Morris gets predilection here ;-) Flirtations by nature, says there are a lot of college memories in the car and that's why wants to hold her back forever and ever.

Check out my first auto story for The Auto Car Show, UTVi.

By Kamiya Jani, Moneycontrol.com

Rahul Mallhotra bought a mobile phone for his 14year-old son so that he could be in touch with him whenever required. But today he realises that the mobile phone is affecting his son's life as a whole. He spends more time talking on the phone or sending text messages rather than with his family.

Kids often try to sweet-talk their parents into buying cell phones on grounds of safety and convenience. But face it! What kids really want to do is text-message their friends, download music or play games.

Moreover, cell phones are not fool-proof. If your kid wants to be difficult, he will be in any case. There is no way for you to find out if he really is at a place he claims to be in. And if he does not want to be reached, he can easily switch the phone off. So don't fall for these talks unless your child is mature, emotionally as well as financially to use the device responsibly.

Emotional maturity matters as much as financial. After all, you don't want your teenage kid to be surfing adult content on the Internet from the convenience of his phone.

As parents however, it may also be very difficult to convince kids against such demands because of peer pressure. Therefore the best thing to do is to buy them one and put in conditions so that they become more responsible. You give a choice so that they know how to compromise. As an ideal parent, what you need to do is allow your kid the luxuries only if they are financially prepared for it.

Explains Zankhana Shah, Certified Financial Planner, "For example, if you buy them a mobile phone, ask them to let go of their pocket money or some other spending like celebrating a birthday." You can take this situation as an opportunity to get your kids financially mature.

In this way, he will be able to take his financial decisions without letting his self esteem go down. The child's emotional management may be affected if all his friends have a phone and he doesn't. Therefore, you ask him to make a choice by which he learns to let go. This exercise indeed makes him mature in all sense.

Agrees P V Subramanyam, financial domain trainer, "Once you buy them a phone, let them decide how efficiently they can use their pocket money by paying phone bills along with other activities like watching a movie, shopping, etc. Teach them money prioritisation, which can be done if you let them take their own financial decisions."

In this way, the child realises that he has to live with his decisions whether they are right or wrong. If parents lead them in every issue, they tend to blame them for everything.

Managing money is all about prioritisation, which may not be only for kids but also for elders. "If you give your kid Rs 1,000 and ask him to pay his phone bill and also get the trendy shoes he has been demanding since a long time, he would automatically cut down on his phone calls to save up money for the shoes," says Subramanyam.

After some point of time, your kid may not listen to whatever you say and thus the best thing is to put in some conditions and let him take his decisions so that he learns with his mistakes and becomes more mature.

Link to the published article: Moneycontrol, Rediff

By Kamiya Jani, Moneycontrol.com
Date of publishing: 2006-11-16 17:11:41

Penalty due to non-payment of bill is not new to anyone of us. And quite obviously, who likes the long procedure of writing a cheque, standing in a long queue and then ensuring that the particular amount is available in your bank account? Similarly, Mr Sharma, who is on business tour for at least 25 days a month, finds it difficult to clear his dues on time because of his busy schedule.

He, like many of us, was possibly not aware of the online services, banks are offering these days. With just a click, all his dues would have been cleared long back. However, it's never too late to mend.

Indian banks are trying to make your life easier. Not just bill payment, you can make investments, shop or buy tickets and plan a holiday at your fingertips. In fact, sources from ICICI Bank tell us, "Our Internet banking base has been growing at an exponential pace over the last few years. Currently around 78 per cent of the bank's customer base is registered for Internet banking."

To get started, all you need is a computer with a modem or other dial-up device, a checking account with a bank that offers online service and the patience to complete about a one-page application--which can usually be done online. You can avail the following services.

Bill payment service

Each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills.

To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. One-time standing instruction will ensure that you don't miss out on your bill payments due to lack of time. Most interestingly, the bank does not charge customers for online bill payment.

Fund transfer

You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees's account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services.

Credit card customers

Credit card users have a lot in store. With Internet banking, customers can not only pay their credit card bills online but also get a loan on their cards. Not just this, they can also apply for an additional card, request a credit line increase and God forbid if you lose your credit card, you can report lost card online.

Railway pass

This is something that would interest all the aam janta. Indian Railways has tied up with ICICI bank and you can now make your railway pass for local trains online. The pass will be delivered to you at your doorstep. But the facility is limited to Mumbai, Thane, Nashik, Surat and Pune. The bank would just charge Rs 10 + 12.24 per cent of service tax.

Investing through Internet banking

Opening a fixed deposit account cannot get easier than this. You can now open an FD online through funds transfer. Online banking can also be a great friend for lazy investors.

Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account.

Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system.

So you need not worry about filling those big forms for mutual funds, they will now be just a few clicks away. Nowadays, most leading banks offer both online banking and demat account. However if you have your demat account with independent share brokers, then you need to sign a special form, which will link your two accounts.

Recharging your prepaid phone

Now you no longer need to rush to the vendor to recharge your prepaid phone, every time your talk time runs out. Just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is again back in action within few minutes.

Shopping at your fingertips

Leading banks have tie ups with various shopping websites. With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking.

Internet banking versus traditional method

Inspite of so many facilities that Internet banking offers us, we still seem to trust our traditional method of banking and is reluctant to use online banking. But here are few cases where Internet banking will turn out to be a better option in terms of saving your money.

'Stop payment' done through Internet banking will not cost any extra fees but when done through the branch, the bank may charge you Rs 50 per cheque plus the service tax.

Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to.

On the other hand, in a traditional method, you get quarterly statements from the bank and if you request for a statement at your required time, it may turn out to be an expensive affair. The branch may charge you Rs 25 per page, which includes only 30 transactions. Moreover, the bank branch would take eight days to deliver it at your doorstep.

If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you.

As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost."

Security Precautions

Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorised before destroying the mailers.

Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out.

Link to this article: Moneycontrol.com, Rediff.com

100% Insurance cover = 60% Settlement claim

Kamiya Jani, Moneycontrol.com

After working hard and saving up, Pradeep Vazirani bought his dream SUV, last year. He says after his wife, his only love is his car. To be on a safer side, he got his car fully insured.

Unfortunately, his car was smashed in an accident and the back door was completely damaged. But he was quite confident since he remembered his insurance agent's words, "Now your car is 100% insured."

So after a week, he went to the insurance company to make a claim for the loss incurred. However, to his utter dismay, he found out that only 60% of the loss amount would be borne by the company. Whatever happened to the remaining 40%?

What Vazirani was not aware of were the various terms and the hidden clauses mentioned in his insurance papers. He assumed that since his car was fully insured, he would get the full amount of loss.

Moneycontrol spoke to experts to understand what exactly was the issue.

Policy coverage

For motor insurance, either there is third party policy or package policy. In case of third party insurance, the policy covers the vehicle owner's legal liability to pay compensation for the third party. Damage to you or your car will not be borne by the company. Third party insurance is mandatory for all vehicles.

If your car is fully insured, then, along with the damage to third party, the package policy would cover loss or damage to the insured vehicle and its accessories as well. The loss may be due to any accident like fire, explosion, self-ignition or lightning, burglary, theft, riot and strike, etc. This package policy is not mandatory, though experts recommend it strongly.

Exclusions

All of us know what the insurance policy covers but not many of us know about its exclusions.

Firstly, there is a compulsory deduction that is made when you claim the loss amount. For example, Iffco Tokio deducts Rs 500 when a claim is made. This amount differs from company to company and is meant to protect against petty claims. Other exclusions under the package policies include wear and tear, breakdowns, consequential loss and many more.

However, the most important exclusion, and the one that affected Vazirani's claim, is the damage to tyres, tubes and other nylon, glass and plastic accessories. Damage to tyres and tubes is not paid for unless the entire vehicle is damaged at the same time of accident. Liability is limited to 50% of the cost of replacement.

"Same is the case with any nylon, plastic parts, battery and air bags. For fibre glass components, the company pays only 30% of the cost," says the spokesperson of Bajaj Allianz General Insurance. Vazirani had to pay for the plastic door handle, tail lights that include the break lights as well as indicator. He did not know that the company does not pay for all the parts made of glass and he had to pay for that too.

Also, 15% was deducted on all the steel parts. This, in itself, was a big cost that he had to shell out, in spite of getting his car fully insured. Plus, there was a 10% rate of depreciation for all the other parts including wooden parts, since his car was more than a year old.

Insurance companies attribute this deduction to the rules and regulations that have been laid down by the Motor Tariff.

Officials from Bajaj Allianz say that the motor tariff was made after a lot of research on the kind of claims the companies were getting. Products like tyres, batteries and so on are used everyday and a depreciation value is attached to it.

Therefore, it is extremely important that you read your offer document carefully and be aware of all the hidden clauses like this one.

Along with all these, there are also few details given by V Ramakrishna, managing director, India Insure Risk Management Services Pvt. Ltd., which the owner of the vehicle must take care of:

• If an insurance company decides to take a spot survey then do not move your vehicle from accident spot till survey gets completed.
• All replaced parts should be kept for inspection by surveyor and should not be disposed of till the surveyor gives approval for the same.
• Do not take any action for damaged vehicle before prior-approval of insurance company / surveyor like repairs, movement of vehicle, etc.
• Never enter into a compromise or make an out-of-court settlement with the injured or legal heirs of the deceased without the consent of the insurers. These compromises or out of court settlements are not payable in terms of insurance policy.
• Documents to be deposited with insurers include original bill of repairs / replacements, cash memo, payment proof, etc., for finalisation / disposal of claim by the insurance company.
• Submission of xerox copies of bills / invoices paid is not accepted. Original bills are required to be submitted to insurance company.
• On approval of claim, arrange to deposit / salvage the damaged parts with the insurers failing which they may deduct the salvage value from the claim amount.
• Provide co-operation to the advocate deputed by the insurance company.

To sum up

One has to be very careful while making a claim and should also be prepared to shell out a good amount from his pocket as well. The owner of the vehicle should be aware of all the terms and hidden costs, which Vazirani did not know that led to nothing but disappointment.

Links: Rediff, Moneycontrol

Property prices have just been going up and there is no looking back. As Sanjeet Narain, Director of commercial property at Narain Corporation, says: "Property appreciation is much stronger than stock markets. Stock markets can probably crash down anytime whereas property rates do not drop down that fast."

Quite a few investors are looking into it as a flourishing option. However, with prices reaching a peak, it is quite understandable to invest in real estate market but getting returns out of it is a little confusing.

The first thing that would come to your mind is 'rent.' Giving your property on rent is one of the best ways to get returns out of property. Not just that, you silently also enjoy the capital appreciation.

Therefore, if your budget allows, you can invest in property and get good regular returns with little risk. People with a low budget would want to stop reading ahead. But if you take a loan from a bank and buy a property from that, you can use the rent earned from the property to pay your EMI (equated monthly installment). Although you may be at no profit no loss situation, but aren't you building a property as an investment for your self?

There are different ways of earning rent depending upon the kind of property that you buy.

A. Commercial Property

If you own a commercial property, you have a lot of choices in store for you. For renting a commercial property, one has two options -- retailers and office occupiers.

1. Retailers

Depending upon the city, area and location, the rent differs for each of the below options. A simple rent every month can work like a salary for you, that too without working. Rather than keeping your property idle, the options given below can help you to extract money from your property, which can do wonders for you.

Retailers	Minimum area required
Super markets	3000-5000 sq ft
Restaurants	2000-5000 sq ft
Toy shops	1000-2000 sq ft
Shoe shops	800-2500 sq ft
Jewellery shops	500-5000 sq ft
Book stores	2000-10000 sq ft
Furniture store	5000-20000 sq ft
Departmental stores	15000-50000 sq ft
(as told by property consultant, Ramesh Nair)

Franchisee

Giving your property to any well-renown brand is another lucrative option. Since the multinational companies have realized the potential of India, they have been trying to grow the number of outlets in India.

Like, McDonalds, which has so many outlets in India especially in Mumbai. Similarly, may other brands like Pizza Hut, Barista, Caf� Coffee day, etc. may be waiting for you.

Rent may not be the only way to earn out of here, the other way would be asking for a profit share every month. You give them a place to work and they give a part of their profit. Different brands function differently, depending upon your negotiations with them, you can either decide on the monthly rent or earn by the profit sharing basis.

Rental rates of commercial property in Mumbai (as told by Sanjeet Narain)

Mumbai  Rental rates (per sq ft):

• Bandra Kurla Complex:----- Rs 200-250 per sq ft
• Andheri (West) :----- Rs 90-120 per sq ft
• Andheri-Sakinaka:----- Rs 40-60 per sq ft
• Malad:----- Rs 40-60 per sq ft
• CST Road-Kalina:----- Rs 125-175 per sq ft

2. Office Occupiers

These office occupiers basically include all Software companies to financial institutions to telecom companies. According to Sanjeet, ideally, the area required for the following options should be anywhere between 1,000 sq ft and 5,000 sq ft (excluding the pay and park option, which could be more than 5000 sq ft).

a) Multinational Companies and Financial institutions

India's cheap labour and high purchasing power has attracted quite a many multinational companies to start up their business in India. These MNCs never buy a property in India; they always prefer to take it on rent. These MNCs generally give a high rent and are quite regular with their payments. Examples would be BPOs, software companies, financial services.

b) Banks

With the number of banks growing in India, all banks want to reach out to the remotest area of the city. You never know if they want to open a branch where you have bought a property. If your area is big enough for a bank to operate, you must look into the newspapers where they put in the

advertisements and invite tenders. You can easily earn a good amount depending upon the area.

You can be sure that banks are generally quite regular with their rent payments. Banks normally take the property on lease i.e. more than five years, says Narain. The rent basically depends upon the total area and the location but you can be sure that its pays off quite high.

c) Business Centre Agreement

"This is another option of earning money and saving tax. Generally, you have to pay tax on the rent you earn but in Business Centre Agreement, you term your rent as service charges and hence you save property tax," informs Sanjeet. When the landlord gives his furnished property along with various amenities like telephone, electricity or computers to the client, he will take rent from him but the rent will be termed as service charges.

This helped the landlord to save his tax, which he would have had to pay on rent. However, now the government levies 12.24% service tax on service charges as well, says Sanjeet.

Nonetheless, this is another good option to earn from your property. So, if you have an ideal furnished place, give it on rent today. The rent or rather the service charges are higher here since the client does not have to spend much on the infrastructure.

d) Pay and Park

If you have an open plot in the midst of the busy city, converting it to a parking area is one of the best options. With the growing number of vehicles, parking seems to be the biggest problem for all the drivers. You can resolve their problem and also make money out of it.

Generally, it costs Rs 20 for parking a car for an hour. Therefore, even if there are 200 vehicles per day, you can easily earn Rs 4000 per day, which further means Rs 1,20,000 per month. Isn't it a great deal? Think about it.

In metro cities, you can get a return of about: (as told by Sanjeet Narain)

• Mumbai:----- 10-12%
• Delhi:----- 8-11%
• Bangalore:----- 8-10%
• Hyderabad:----- 10-12%
• Kolkata:----- 8-11%

B. Residential Property

The location and the living standards are two important things for residential property, rightly said by Chetan Narain, president, India Institute of Real Estate. The rent generally differs depending upon the location. One needs to first set the right budget to invest in residential property.

According to Chetan, "Commercial property can give you higher returns as compared to residential property. One can 10-12% return in commercial property whereas residential can give you about 5-6%, exclusive of taxes."

However, if you have bought second homes as an option, or bought a property in any other city, grow your bank balance by giving it on rent. Here are the options:

Company leases

Giving your property to corporate employees is one of the safest options. Their respective companies generally give the deposit and the rent. Having a legal document stating the rent and number of months is advisable.

Individual leases

An individual may pay his rent and security deposit for himself and his family. This is the most common trend for residential property. The house is generally given on 11 months agreement.

Paying guest (PGs)

Individuals from different background and families stay in one house and the rent is paid individually. Here, the landlord would stay in one of the rooms and may give his other rooms on rent. There is no legal document, which is signed between the landlord and the PGs. The deposit and the rent is quite less in this case.

Guest houses

A furnished apartment with a cook and a housekeeper given on a rent for a short period of time would fall under this category. These guest houses are quite common at hill stations and in cities; they are generally rented on occasions like wedding or some celebration.

Service apartment

A completely furnished home with all amenities can also be given on rent. Here you can earn a higher rent but your personal belongings may be at stake.

Precautions to be taken

"Most of the times, the commercial property is not given on rent but on leave and license agreement, which means that the landlord gives his property to the client for less than five years. If the property is given to the client for more than five years, then it is said to be given on lease," informs Sanjeet Narain.

In case of lease, you have to pay 5% stamp duty of the lease period. Whereas, in case of leave and license agreement, the maximum stamp duty to be paid would be approximately Rs 50, 000.

Here are few of the points, recommended by Ramesh Nair, that are to be taken into consideration at the time of negotiations:

• Profile of the occupier
• Security Deposit
• Lease term
• Maximizing rent
• Escalation of rent at the time of renewal
• Maintenance cost
• Parking
• Signage
• Power availability
• Competitor clause
• Repairs and alterations
• Property tax
• Termination rights
• Lock-in period
• Force majeure
• Various indemnity clauses
• Sub lease clause

Disadvantages of giving your property on rent

There are a lot of advantages of giving your property on rent, but there are also a few disadvantages.

• Landlord cannot use his property for personal purposes once it is given on rent. However, it is just for a particular period of time as negotiated.
• Sometimes, the tenant may delay the monthly rent.
• Few tenants don't vacate the house on time. They keep postponing the vacating date.
• The occupant may mishandle personal belongings like bathroom fittings, walls and so on.

However, these disadvantages can be prevented if things are made clear during negotiations.