Posted on

Things That Make Investing in Commercial Real Estate a Big Deal

What can be a better deal than investing in something that doubles the money? And investing in commercial real estate is a sure shot formula of getting higher profit at minimal risk. However, to accomplish it successfully you need to go for some smart choices like when to buy property for investment. Your utmost objective should be to hit the right area at the right time.

commercial property in gurgaon

Below are some of the main points that make investment in commercial sector a big deal:

Cash-on-Cash Return: When you invest in any illiquid asset, such as real estate, you take money out of your liquid assets, including stocks and bonds. And on these liquid assets, you were earning around 4 to 5 per cent return; therefore choose a property with high return. This will help you to earn decent returns.

Less Time for Managing: There are a few real estate properties that require a lot of managing time. Therefore, it important to go for a smart investment, and avoid properties with vacation rentals or properties located in bad areas. However, a good property rented to a decent tenant can be advantageous as you need not to put in too much managing time into the property. Moreover, when you treat your tenant nicely and with respect, there will be no hassles and things will move smoothly.

Invest in a Growing Area: Preferably choose a growing location over an established one to get a good return. In any developing area, the rate of property will be very high and that can be little difficult to invest in for a middle class person. And even then if you are planning to invest in a developed area, you might have to compromise with a small size commercial property. Moreover, the value of commercial property increases more in any developing place, than that of developed area.

Guard against Inflation: Commercial property for investment sale has a high potential to evade inflation as the values and rents of properties increase regularly. For occupants, renting a property has been more attractive in comparison to the new construction, especially during the times of inflation. Nobody can forecast the time of inflation, so if you are lucky enough and invest right before the inflation, you will get a good investment property with returns.

Posted on

Tips For NRIs To Invest In Commercial Property In India

It is becoming a challenging task for Non Resident Indians to invest in Indian property as rupees are touching the grounds in comparison to the dollars. Different cities from Delhi and Mumbai to Gurgaon and Noida, every town offers commercial property for investment purpose. If you are an NRI and planning to invest in property in India, preferably consider investing in commercial real estate. Finding a commercial property is not at all difficult, but investing in the right one requires little caution. Below are some tips for NRIs to look before investing in commercial property in India.

Tips for NRIs to Invest in Gurgaon

Location: Before choosing a commercial property for investment sale, make sure you check economy, job market and population growth in the market. Moreover, investors should check the reliability of the location, along with demand and supply dynamics. Appropriate research is very much needed before investing.

Type of property: Once you have decided on the location, check the type of property you want. The most popular properties for this include retail and office spaces, but preferably go for a property with good return. Till few years back, there was only large units available in both, which made it difficult for small investors to invest, however, with the smaller spaces, it has become quite easier. In addition, experts believe that investing at high street is more beneficial than a mall as it can be failure. This is because shops in a mall are sold before its construction and developers restrict to sell a store as a unit.

Expected returns: Professionals suggest keeping a higher budget for any commercial investment will provide higher return of investment. When you buy a property make sure you get at least 11 to 12 per cent of return. The income generated from a commercial property determines its value or it can also be said that capitalisation of the property directly depends on the demand for the property. Investing in commercial property can be a high-return game if you do your homework well.

These are some of the important tips that would help you to invest in right type of commercial property at correct location, which will provide maximum return of investment.