Find Destiny in Commercial Property Investment

Find Destiny in Commercial Property Investment

By siliconindia   |   Thursday, December 4, 2014


Now a day, the Investment in real estate has become as a common investment choice as the realty market is booming with every passing day. In this type of investments the returns are in soar which cannot be stolen by anyone. Mostly, Indians are inclined towards residential property investment, though it provides a second home option. Although, many experts in the real estate market say that if you are a savvy investor who want to expand your portfolio, commercial property investment can be a better option than residential investment from the investment perspective.

Every investor considers two things one is initial cost of possession and other is return on investment. Compared to Commercial property, residential property may cost you less, but small size commercial property can gain higher returns than residential property. For instance, In Bangalore prime locations 2 BHK apartments of 2500-2800 will cost around 28-35 Lakhs and can fetch a maximum rental of Rs 25-35 thousand per month. But, a 800-1000 sq ft of commercial property will cost approximately 40-50 Lakhs and capable to offer better rental returns of more than 60 thousand per month.

Below are the few reasons why the investment in commercial property is an exceptional choice for growing your wealth.

  • Substantial Returns: One of the biggest advantages of commercial property investment is the secured and attractive rental rates which provide regular rental income flow.  In localities such as Jaynagar in Bangalore where there are limited lands for development there the returns will be more impressive.
  • Appreciation: The value of commercial property investments increases over time due to some factors such as supply, demand, capital improvements, inflation and many others. By looking at the rental benefits most buyers prefer commercial property for investment.
  • Leverage: This is one of the major advantages of investing in commercial property.  This investment property allows you to obtain more possessions with less money as it has knack to put debt on the asset which is more than the original equity.
  • Tax Benefits: This real estate investment offers many Tax benefits. Home loan interest and repairs and improvements of building can protect your income flow. It is advised to consult a tax consultant to comprehend all the benefits.
  • Pride of ownership: Commercial property investment offers a great pride of ownership which is unfeasible to value.
  • Capital Growth: Due to the growth of real estate value at a rapid pace the Investment in commercial property will certainly get a steady capital growth along with rental income monthly.

Compared to other kinds of investment, commercial property investment is the best option which offers profitable returns.

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