Bollywood Celebrities Prefer to Invest in Tax Free Bonds

Legends of Bollywood have been fuelled by the overwhelming star power of celebrities such as; Akshay Kumar, Kareena Kapoor, Aishwarya Rai, Ranbir Kapoor and Amir Khan. Few of us know that Indian bond market is fully or partly fuelled by a generous smattering of investment by these superstars. It is reported that Akshay Kumar with age 48 years have earnings of Rs 128 crore in the year 2015 and due to that he is one of the big and most regular  investor in fixed income instruments as recently he has invested huge amount in IRFCs (Indian Railway Finance Corporation) tax-free bonds. When IRFC issued its bonds with Rs 4,532-crore and it was offerings 25 percent reservation for high net worth individuals and this category was used twice on Day One of the opening of IRFCs bond issue. As Aamir Khan and Akshay Kumar with earnings of Rs 104 crore and Kareena Kapoor Khan with earnings of Rs 53 crore have also also put their money into IRFC bonds, as per the sources.

According to Hiten Shah, Director at SK Capital Advisors, “Now Bollywood celebrities have realized that fixed return instruments are more secure and attractive as they offer them tax-free way to invest more money for long term such as; for 15 to 20 years, whereas; if they will go for fixed deposits, so it will be taxable and are for shorter tenure”. The more he added that most of the celebrities believe that on the time of liquidity requirement, they can use these instruments by selling them into the market and it will help them to generate additional profit through capital appreciation over and above the interest rate if the interest rate falls. These days even young celebrities such as; Ranbir Kapoor (Age 33) have the earnings of Rs 85 crore and currently he is investing in the bonds, former Miss World has invested in tax-free instruments such as;  in the recent issue of NHAI (National Highway Authroity of India).

Apart from that on the other side, for most of the celebrities real estate is the most preferred investment as some of them have bought living pads in Dubai, New York and London. Now they prefer to invest in the stocks, bonds, private equity funds and in mutual funds, as per the reports. However; some of the celebrities such as; Salman Khan and Amitabh Bachchan have invested in the stocks of listed and unlisted companies. These cine stars prefer to make their investments after the consideration of CA and other professional and they also invest through wealth managers and relationship managers of big banks and financial firms.

In the latest offering of IRFC, now even single investment of more than Rs. 10 lakhs will categorized as non-retail. And in this category¸ the investments of 10 year tenure will provide the interest rate of 7.07 percent per annum, whereas; for 15 years and 20 years tenure the interest rates are; 7.28 percent and 7.25 percent respectively. Whereas; FDs for the duration of 5 years in SBI provides 7 percent interest rate, after paying 30 percent tax, which means you will get 5 percent less net income.

Rishi Kapoor & Ranbir Kapoor

Actor Rishi Kapoor and  son Ranbir Kapoor have bought an apartment each, spread over 6,100 sq ft in the  Trump Towers located in Kalyani Nagar area of Pune for Rs 13 crore a piece which works out to a little over Rs. 21,000 per sq ft.

The Trump branded project, being developed by Pune-based Panchshil Realty, is the first venture in India by Donald Trump, the American real estate tycoon and Republican front runner  for next year’s US presidential elections. The project has two 23 storey towers with one apartment on each floor.

While the Kapoors did not offer comments on the deals, Sagar Chordia, executive director at Panchshil Realty confirmed the transactions.

Ranbir Kapoor and Katrina Kaif

Recently, Ranbir and Katrina was the talk of town because they were shifted into a rented apartment at Mumbai’s Carter Road. Earlier, Sunny Leone shifted in rented apartment at Versova after searching for an ideal pad for nine months, before that she was living in a hotel. Other known celebrity are Jacqueline Fernandez, Prabhudeva, Aditi Rao Hydari, Chitrangada Singh and Imitiaz Ali who are the prominent tenants in Mumbai and living on rented property since the beginning of their careers in Bollywood.

Living with stars and celebrities can be a dream come true for you, and as well as you can get a chance to enter in the media industry. But as a landlord you should have some of the important ‘must-have’ qualities as well as your property or apartments should have same. This trend shows that even celebrities prefer to rent apartments or properties rather than buy one in a city with ‘exorbitant’ real estate prices. Celebrities consider following factors while taking the property on rent;

Property Design:

In present all the modern actors look for fully furnished apartments along with creative interiors and best view that can relax them during their free time. So if you wish to give your property on rent to any celebrity than you should design your property according to needs and necessities of celebrities.

Frequent Partying:

Celebrity always looks for easy-going landlord because of their professional relation and regular parties. if you are keen to earn the desire income from well know face of the TV or Bollywood industry. As a landlord you should never put the objection on their late night parties, loud music and visitors, because it’s their professional culture and without it they will never agree to rent your property.

Premium Locations:

All celebrity love to live in premium locations such as; Versova, Juhu, Bandra West, and Andheri West because these localities are nearby Film City in Goregaon East, so it will save their time while traveling.

Privacy and Independence:

Most of the celebrity prefers to live in peaceful location like other tenants, so if you wish to give your property on rent than develop your property in peaceful atmosphere. Try to give them as much independence and privacy within your resources.

Fluctuating Incomes:

We all know that acting is not a regular profession, hence you may face unavoidable delays in payment from them and as a good landlord you need to understand that.

Housing Society Approvals:

All celebrity to know the rules and regulation and before taking the property on rent them can ask for the document of society approval and other documents. In Mumbai most of the housing societies are reluctant to rent homes for those who all are in the acting field. Make sure that your resident associations don’t have any objection if you give your house to any celebrity.

Rental Agreement:

It’s recommended to enter in the rental agreement before leasing your property to a known face because this simple step can avoid future hassles when and if it comes to evicting the property due to breach in society by laws.

According to marketing manager of well known construction company, Luxury apartments and villa projects are in huge demands because investors are buying the property and later they are earning lakhs of rupees by renting the property to well known faces. So it is recommended that if you wish to rent your property to some celebrity than buy a property will all luxury and basic amenities.