TIPS TO INVEST IN COMMERCIAL PROPERTY

INTRODUCTION IN INDIA, THE REAL ESTATE HAS ALWAYS BEEN LUCRATIVE AND FAVOURABLE INVESTMENT OPTION. HIGH GROWTH IN SERVICE AND MANUFACTURING SECTOR RESULTED IN HIGH DEMAND FOR COMMERCIAL AND RESIDENTIAL REAL ESTATE. INVESTING IN A COMMERCIAL REAL ESTATE IS NOT AS DIFFICULT AS IT MAY APPEAR. COMMERCIAL PROPERTY REFERS TO BUILDING/ LAND, INTEND TO GENERATE THE PROFIT THROUGH CAPITAL GAIN OR RENTAL INCOME. NOT EVERY REAL ESTATE INVESTMENT FETCH GOOD RETURNS, WE WILL GIVE NECESSARY TIPS TO HELP YOU IN YOUR INVESTMENT RETURNS. INVESTING IN REAL ESTATE REQUIRES PROPER RESEARCH AND PLANNING.

WHAT IS COMMERCIAL PROPERTY? OFFICE BUILDING WAREHOUSE RETAIL BUILDING GARAGES INDUSTRIAL PROPERTY HOTELS MALLS MEDICAL CENTERS

LOCATION WHEN SEARCHING FOR A COMMERCIAL PROPERTY, CHOOSE THE RIGHT LOCATION TO HELP THE SUCCESS OF YOUR BUSINESS. COMMERCIAL PROPERTIES PROVIDE RETURNS THROUGH CAPITAL APPRECIATION AND RENT. CAN THE OFFICE BE REACHED VIA., ALL THE MODES OF TRANSPORTATION? IS THE COMMERCIAL PROPERTY CLOSE TO ALL MAJOR COMMERCIAL HUBS? DO THE BUILDINGS HAVE A MODERN LOOK AND FEEL?

LOCAL TAX AND INFRASTRUCTURE TAXES VARY BETWEEN THE CITIES, TOWNS, AND MUNICIPALITIES. YOU SHOULD KNOW ALL THE TAX RATES BEFORE INVESTING IN THE COMMERCIAL PROPERTY. INFRASTRUCTURE FACILITIES INCLUDE GARBAGE ACCESS, ELECTRICITY, WATER, DRAINAGE, ROADS, AND INTERNET ACCESS.

SECURITY DEPOSITS AND QUALITY OF TENANTS SECURITY DEPOSITS IN COMMERCIAL PROPERTIES VARY BETWEEN 1-2 YEARS. BETTER TO BE CAREFUL WITH TENANTS GIVING 6 MONTHS OR LESS, AS IT MEANS THAT EITHER THEY COULD BE LOOKING FOR SHORT-TERM OPTIONS OR HAVE CASH-FLOW ISSUES. A GOOD TENANT PAY RENTS ON TIME, HIGHER DEPOSITS, STAY LONGER YEARS. HENCE, IT WILL HELP INCREASE THE VALUE OF YOUR PROPERTY.

PROS OF COMMERCIAL PROPERTY HIGH-INCOME RETURNS LIMITED HOURS OF OPERATION PROFESSIONAL RELATIONSHIP WITH TENANTS. FLEXIBILITY IN LEASE TERMS

CONS OF COMMERCIAL PROPERTY HIGH INITIAL INVESTMENT MORE RISK PROFESSIONAL HELP REQUIRED

CONCLUSION FOR THOSE LOOKING TO INVEST IN THE REAL ESTATE AS OF NOW, IT IS BETTER TO INVEST IN COMMERCIAL PROPERTY THAN THE RESIDENTIAL PROPERTY. OVERSUPPLY IN THE COMMERCIAL REAL ESTATE SPACE MAKES PRICE RELATIVELY LOW ON THE COMMERCIAL PROPERTY THAN THE RESIDENTIAL PROPERTY.

THANK YOU