Real Estate

5 Tips on Choosing a Commercial Property

Over the years, investing in commercial properties has become a trend for investors across the globe, and especially in a country like India. Foreign investors are ready to pour cash to buy property in Mumbai. In case you are considering the same, make sure you go through these vital points before trying hands on such an investment.

Location of the property

Is the property you are keeping an eye on, has got the required locational advantages you would desire for? The reason why location plays a pivotal role is because the amount you may profit in future will completely depend on its appreciation value. For this, you need to do proper research such that you don’t have to suffer loss in the near future.

Class of the property

There are numerous sorts of properties available for investment in the commercial capital, be it retail or an office space. You need to make a decision based on solid facts rather than personal instincts. Some consider purchasing a space in malls, while other look for a private area on the road. The latter is a safer option.

Complete scrutiny

The property in question needs to be scrutinized in and out before thinking to put hands on it. Do complete background check as to whether the property is well managed, well accessed from nearby transportation and has the prospective regarding the development of infrastructure. Check with the developer with all the authentic credentials to verify the records.

Investment to return ratio

You need to make an estimation as to whether your share will give you the desired returned you are expecting to extract from the transaction. This involves a summation of leasing profits and resale value. Going by the recent trend, if a commercial property doesn’t give you a return in the range of 12-13%, it would be a waste of a deal.

Time duration of investment

Another important thing to take note of, is how long you are going to keep that investment floating around. If it’s more than 5 years, consider buying a land and then build up on it, as the appreciation value goes up geometrically. If it’s a short term investment, say 2-3 years, opt for buying a well-established plot.

Choosing a commercial property is all about complete planning beforehand, in order to avoid any complications afterward. Once you sign the contract, nothing would help you reverse the deal.

Gagan

Welcome! I’m Gagan. This is my news blog devoted to lifestyle, health & fitness, travelling, technology, business and all the in-betweens. I hope you will enjoy my daily style and never boring life!

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