Looking for an investment property but
not sure about exact property, this article will help in choosing the
best option for you. There are two types of real estate investment
options, Residential Property and Commercial Property.
According to expert’s point of view, Commercial property is best
investment option. In this article I am going to tell you some things
about commercial property and why this is important?
What is commercial property?
In simple word, it is everything which is
not residential or vacant property. It includes three classes:
official, industrial and retail. Where industrial includes factories and
ware houses and retail includes shops and small groceries.
Rental Returns
According to the circumstances and
locality, people get rent of their properties. But at one hand where
people get 4% or 5% yearly from their residential property as rental but
at other hand people can get better return from their commercial
property depending on market condition, locality and quality of
building. But always before the investment you should choose such type
of property which is its initial stage of development like property in
NCR, Property in Noida and etc.
Capital Growth
Residential property does not ever give
high return as commercial property. The price of residential property
will increase according to the development of area and that will end at
one stage but the price of commercial property always increases. Taking
an example of developing location like Yamuna Expressway, if you are
investing in Commercial Property In Yamuna Expressway, this will be surely fruitful for you because when market is fully developed the demand of commercial property increases.
Outgoings
This is the very best factor which makes
great difference between both types of properties and shows the benefits
of investing in Commercial property. In commercial property entire
outgoings like maintenance charge, council rate and property management
fee are paid by the tenants. In this way everything which tenant pays
you is your saving on the other hand all these charges are paid by the
owner in residential property like.
These are some facts which investor should think about before investment but I am going to tell you some drawbacks of investment in commercial property.
If your tenant leaves your residence it is very easy to find another
tenant for your residence but in commercial property, owner has to wait
long for another tenant. So you should keep ready some amount to cover
your mortgage if property is empty longer.
Article Source :- Tips to by Commercial Property
