Author Avatar

admin

5799

Share post:

For the longest time, people have seen real estate as a good way to invest their money in and get a good return on their investment. So the question is: What should you invest  your money in 2021? Is commercial the right choice or should you buy residential properties?

Real estate is a great way of investing your money into something that will yield a significant return on investment and create an asset. Typically you can get 10-12% of ROI (return on investment) from residential properties (includes rental income) and 14-15% ROI from commercial properties (includes rental income), so if we compare on the basis of ROI, commercial properties are a better investment.

Commercial or residential property?

We recommend you to invest in commercial properties rather than residential properties. Commercial properties are means-to-an-end for the business sector, as most companies and businesses establish their own place for commencement of work and business. In the current state of the economy, it is crucial for the business sector to carry on trade and other businesses to support the economy and in order to do that, businesses need to provide services to the residents. Such a situation increases the probability of demand for commercial properties, which makes it the better option for investment purposes.

What’s a better investment option?

You should invest in residential property only if you plan on using the property for yourself otherwise commercial properties are a better choice of investment in this current period. While investing in commercial properties, you shouldn’t invest in just any property but properties that are pre-leased. Pre-leased Properties will ensure that you get regular rental income from your investment and can amount to 5-7% ROI just from rent annually. Apart from ROI, the prices of properties are down right now, so it is advisable to invest in commercial properties now instead of later as the prices are predicted to hike in the coming years. Investing in commercial properties like office spaces and retail spaces can be highly beneficial.

What to take care of when investing in pre-leased commercial properties?

While investing in pre-leased commercial properties, you should keep in mind that a pre-leased and an empty commercial property should be sold at the same price, you shouldn’t have to pay more money for a property just because the property is pre-leased. Apart from the price, it is important that your property stays on lease in order for you to get great returns, one way of ensuring that can be: assessing the amount of investment the tenant has made in the property, in terms of furniture and other essentials; this assessment will help you gain insight if your tenant might be flaky or not. Investing in properties in prime locations like Gurgaon and Delhi.

Why should you invest in Real Estate?

Discussion

Leave a Comment

Your email address will not be published.