Articles
Rules For Investing In Commercial Shops
by Avadhesh Sharma SEO AnalystReal estate has always remained an essential segment of people’s investment portfolio. The reason is not possible high returns only but the related pride of possession too. But the truth is not every real estate investment does not always make good returns. Various examples are evident where real estate investments brought sour results for its investors. The realty market for residential and commercial properties often responds diversely to different situations.
Future of commercial real estate investment –
If the commercial v/s residential real estate is concerned, investing in the commercial real estate is an obvious choice for most of the investors. The reason is simple - retail investors have better understanding of residential real estate than commercial real estate. Most of them buy homes in different cities and put many of them on rent, which makes a consistent source of income for them.
But if people are thinking of investment only, their concern should be capital appreciation. Recently, residential property market is on a depressed state. However, on the other hand, commercial market space absorption has been increased, and the experts of this industry says that the trend is about to grow. The rental fee is higher too for the commercial properties.
Types of commercial properties:
Commercial properties can be of different categories. When you see advertisements about shop for sale in Rishikesh or something similar, it is a chance for investing in commercial shop properties. A shopping mall, housing complex, office space, etc. are also parts of commercial real estate investment. Every kind of these hold different perspectives such as profile of the tenant, investment amount, return on investment and related risk factors.
In this article, we will discuss on investing in the commercial shops only.
Commercial shops:
If you are a new investor in town and you are interested in investing in the commercial realty market, you can look for commercial shops for sale in Rishikesh. Look for buying a shop in your locality, shopping mall, residential complex or high street regions. You can expect the return on interest rates from 9 - 10 % to 12 – 13 %. You earn more profits by getting your shops in a good location. Shops can earn you good rents depending on the purpose of renting such as a doctor or accountant’s clinic, ATM or wholesale outlets.
An important question to consider … do you need to consider the location when your investment amount is proportionate with the size of the shop? YES! For example, if there is a shop for sale in Rishikesh on the high street side, it will definitely cost you more. Its tenant profile can be higher with a lower rental yield and risk factors, you should think of making lease agreements on long-term basis.
Don’t feel worried! Investing in a commercial shop is not that much difficult. Just follow the rules for investing in a long-term basis and get a higher ROI. Consider the following factors –
1. Location
2. Quality of the shop
3. Demand and supply
4. In-place and market rent
5. Tenant quality
6. Interior fit outs
7. Fi out and base rents
8. Lease structure
9. Security deposit
10. Diversification
Keep these points in mind and be a successful commercial real estate investor.
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About Avadhesh Sharma 
SEO Analyst
153 connections, 0 recommendations, 505 honor points.Joined APSense since, October 18th, 2019, From Delhi, India.
Created on May 5th 2020 06:13. Viewed 269 times.
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