What are the Benefits of Investing in Commercial Property?
Commercial property, unlike residential property, will always give you returns, even when the property market is down. Commercial property consists of offices, retail buildings, warehouses, industrial buildings, and mixed use buildings. The idea of commercial property is to keep the returns flowing freely, without incurring any additional issues during the investing phase.
Commercial properties in Hyderabad, Chennai and Bangalore offer a rental of 6-9% on office property. This way, people looking to invest in a stable property can expect a good rate of interest, as soon as the investments are in place.
In order to understand if investing in commercial property is worth your while, here is a list of the pros which can help you rule in favor of commercial property.
1) Flexible financing: Commercial real estate can be very flexible, especially, when it comes to exploring the financing options. As a matter of fact, you can even purchase big properties without shelling out a single penny from your own pocket. There are a series of flexible payment options which are available to people who are interested in buying and investing in commercial property. Banks and other lending institutions offer a series of payment options to people who are actively looking to invest in commercial property. Each type of commercial space comes with its own set of offers and investment varieties.
2) Cost saving with numbers: When it comes to cost saving, there is always saving in numbers. If you are an investor who is looking to invest in multiple properties, it is better to do so in one place, rather than in multiple places. This way, if all your properties are in one place, one can develop positive relationships with their vendors, which helps in securing good maintenance and ultimately, save costs.
3) Higher rates of return on investment: People invest money only to get returns on their investments. With investments, it is important to be prudent and invest in a systematic manner only. If you are planning to invest in a property in some of the posh localities within cities like Hyderabad, Chennai, Bangalore, etc., rest assured you will get good returns on your investment. However, make sure you are doing the required research, even if you are investing in a property within these cities. For example, if you are investing in a shop on the outskirts of Hyderabad, chances are it might not be as successful as a shop in the interiors of Hyderabad might be. Choose wisely.
4) Assured rent in commercial properties: Commercial properties come with their own set of rules and policies. One of these rules revolves around the assured rent for these properties. If you buy from a reputed builder, chances are you will get an assured tenant and rate of return, before the ownership is even transferred to you. This is one of the most positive factors with a commercial space, which makes it a preferred choice for a lot of investors.
5) Leasing: Commercial properties have a long leasing period, which extends up to 10 years at least. The extended lease periods ensure that the owner of the property has a good, secure rental income for a few years, without bothering about lease renewal and finding new tenants.
Commercial property has become the talk of the town over the last decade or so. People are rapidly progressing and are seeing the returns such properties can provide to potential investors. The higher the returns, the better would be the prospects of rent and returns. However, it is all about investing at the right time and making the right choices.