Category: COMMERCIAL PROPERTY

Any kind of property, whether it is a commercial property, or residential property can be a truly fantastic investment opportunity. When it comes to your money, commercial properties are known to offer great financial rewards compared to residential properties. With that being said, there are some unforeseen risks that commercial property owners take on.

For that reason, if you are interested in owning a commercial property it is wise that you do some research and learn about the major pros and cons of that kind of investment.

If you are interested to learn more, continue reading below:

What is a commercial property?

In order to really know the pros and cons of a commercial property, it is first important that you know what a commercial property actually is. Below is a list of the most typical types of commercial properties:

• Retail buildings
• Warehouses
• Office buildings
• Industrial buildings
• Apartment buildings
• Mix use buildings, such as retail, office, and apartments

There is no doubt that there are slight differences in terms of running each and every type of commercial property, but the overall pros and cons that exist within these types of property are pretty consistent.

Pro – income potential

One of the most important pros to keep in mind is that they typically have a great annual return. In fact, that return price usually comes out to around 6 percent to 12 percent. This is much higher than single-family home properties where the return is usually 1 percent to 4 percent.

Con – Major commitment

One con that you might want to be aware of is that commercial property investments do require a lot of time. You will have to be a present landlord and make sure to fulfill any requests from your tenants to make sure that they are satisfied and treat the property with respect. You’ll have a lot to manage, much more than if you were just purchasing a residential property like a home.

Pro – Professional relationships

Another great aspect of owning a commercial property is that you are much more likely to have a business-to-business relationship with your tenants. The reason why is because both businesses’ reputations depend on the quality of the property. Without personal relationships getting in the way, you are likely to have easier time-solving issues, getting your rent checks, and maintaining tenants for many years.

Con – Larger initial investment

This could be seen as a con if you do not have the liquid cash in order to make the purchase easily. Purchasing a commercial property is likely going to cost you more than purchasing a single-family home, and it could keep you out of vying for the top properties in the area if you are strapped for cash.

Pro – Limited hours of operation

The final pro for you to keep in mind is that commercial properties have limited hours of operation, unlike an apartment building where people are obviously there throughout the day. Limited hours of operation means you’ll have more traditional working hours and won’t have to worry about middle-of-the-night emergency phone calls from a tenant.

When you’re trying to hop into the robust world of real estate in India, whether you’re interested in commercial or residential properties, there are a lot of things to keep track of. The industry is booming, but you need to know the ins and outs of what people expect if you’re an investor and what kinds of properties of which to steer clear. Not only that, but you’ll need to take into account exactly what you’ll be dealing with. Renting out property you own can be a trial if you don’t do it the right way, so make sure you read the following tips to keep fully abreast of the current real estate market in India.

1. Investor or Homeowner?It can be a hard call to figure out whether you want to invest in real estate and rent it out to tenants, or to purchase a home for yourself. Comfortable homes built by companies like Unitech offer desirable amenities that development builders in Gurgaon are striving for. Depending on where you live now, you may decide you want to personally inhabit the properties you find. However, if you still want to invest and are satisfied with your own home, SiliconIndia suggests that investors consider renting out rooms to temporary tenants, such as students who come to attend school in the area. Therefore, even if one day you’d like to retire and live in the property you’re renting out, it’s important to remember that real estate holdings can always turn a profit. A property should never sit idle and collect dust, since in this day and age, it’s more valuable than ever.
2. A Booming BusinessOne of the biggest business sectors in India right now is real estate. According to the Business Standard, India will need 76 million workers in the real estate industry by 2022. In other words, as one of the primary job creators in the country and an emerging industry that’s only just beginning to find its feet, there’s no better time to get into the game than now. There are thousands of Indians who will now demand a higher standard of living as they get older, as well as right now. If you have a comfortable flat that can properly accommodate your expectations, or even the expectations for your tenants, then you’re in the right business juncture to make a profit.
3. Good for Kids and WorkersApart from the typical amenities you’ll find in many gated communities for homes, such as clubhouses, pools, and green spaces, there are also plenty of activities for children and adults alike in nearby cities. For example, The Times of India reports that there’s a huge selection of leisure activities for children in Gurgaon, including swimming, ice skating, martial arts, and other arts-related interests. If you’re interested in relocating or renting out a property in this region, there’s plenty of incentive for the parents of young children or even students to be interested in renting the home you purchase. Always remember that one of the best places to invest in residential property is anywhere that has universities, major corporations, or hubs of public transportation nearby. These are always perks for people who commute to their workplace, which is most people in India. Emphasizing access to these amenities will increase interest in any residential property in which you invest and try to rent out.
4. It’s Time to Hop AboardNow is the time to join the real estate parade in India. In the midst of an older generation that has very different expectations than the current one, the future is most important. Although traditionally, something else might have been expected of young people, these days it’s all about luxury housing and where it’s located. Always bear in mind that wealth is frequently determined by a job and a certain level of income. Therefore, when you invest, make sure that your property is at least located near an institution of higher education. Although renting rooms to students can be taxing and sometimes seems like more of a headache than it’s worth, those same tenants may come back to you five years later as successful entrepreneurs or other people in a professional field, looking for safe housing. As long as you invest now, you’ll be ready.

Overall, there are basically a lot of great deals you can get on Indian real estate right now that you can’t find anywhere else in the world in desirable locations. India has a booming economy and a real estate industry to match, and it’s time to catch up with the times if you’re interested in becoming involved with this world. Whether you plan to buy and put up tenants, or for yourself, now’s the time to make a decision. All it takes is a little gumption and some savings to invest in a property in India, and given that the market can only continue to improve, it might be the wisest decision you’ll make all year.

At the point when putting resources into business land for business, being set up for the property hunt can counteract settling on any rushed choices that may hinder a positive profit for the speculation. The accompanying are some useful things to remember when searching for business land:

Be Prepared When Visiting Potential Properties

At the point when taking a gander at various properties with a land specialist, be equipped with the instruments expected to settle on a precise choice. Convey a camera to take photos of the space, a measuring tape to twofold check square footage, an adding machine, and a scratch pad. It’s additionally advantageous to get a duplicate of the diagrams of the working to continue document.

Ensure the Property Is Zoned Properly

Prior to the hunt starts, let the specialist recognize what sort of business will be in the building. This is on the grounds that a few zones are not zoned for specific organizations. For instance, the land operator may locate a dazzling working in an office park, however the endeavor is a retail location. The workplace park is not zoned for retail utilize, so there is no compelling reason to examine that space since it can’t be utilized for the business.

Decide the Building’s Impression

At the point when drawing nearer the property, decide the impression the building emits through its appearance. Figure out if the appearance will estrange the coveted client base. Contingent upon the way of the business, the appearance may not make any difference as much. On the off chance that the building searches excessively shabby for an upscale dress store, consider an alternate area.

Check the Interior for Defects

Once inside, check for evident imperfections in the space, for example, missing ground surface, broken or ugly lighting apparatuses, and harmed roof tiles. Likewise, take a gander at the air and warming unit. Get some information about the state of the ventilation work and the outside unit. The tenant will be in charge of making all repairs to the building, so choose the amount of a support spending plan is expected to alter anything that might not be right with the space. Notwithstanding, if there is an auxiliary issue with the building, that will probably be the obligation of the proprietor or landowner.

Putting resources into a business land space is a major stride in beginning another endeavor. Try to counsel specialists if there are inquiries concerning new territories of mastery, particularly in regards to the building’s structure. The guidance of a lawyer may likewise be useful before marking a lease to guarantee everybody required in the process is ensured in the occasion there is a zoning change or different occasions that could bring about issues for the endeavor.