Pre-Rented or Rented: Which Property to Choose?

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Different types of properties are there that people are investing in.  Talking about the commercial spaces, everybody wants to save a good amount and make the right choice. Amidst different choices, pre-rented commercial properties are on rise.

You too can look out for Pre rented commercial property for sale in Delhi and have it as per your convenience and budget. It is true that real estate grasps the greatest fascination for all the investors, specifically commercial real estate. When you investment in commercial property, it guarantees great returns, and much better capital appreciations. One type of commercial property investment is venture in pre-leased commercial property.

In simple words a pre-leased or pre-rented commercial property is property or belongings that has already been rented out to a firm / retail brand/ bank, and is on sale currently.  As the name shows, it is already leased to an occupant at the time of sale, and is originating a secure income. These are the properties that are sold at their rental harvests. Rental Yield is basically the regular return that is gained on investment that too without considering the predictable capital loss or gain from sale. Generally the investment amount can begin somewhere at Rs 50 Lacs and can even go up to Rs 100 Crore or advanced.

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Pre-leased Commercial Properties cater a multitude of benefits. Have a look below:

Assured returns Since the First day

Generally, people purchase properties and rent the space out later. It means that the purchaser looks for the occupant himself and has to wait for the return, after buying, till time the property is basically rented out. However, in the case of a pre-leased commercial property, returns are certain right from day 1. It simply means there is a zero waiting time for Return on the Investment (ROI).

Saving the Tax

The rental received by the purchaser is taxable. However, a thirty percent standard deduction is always permitted for maintenance and repairs, irrespective of the actual amount expended. It simply means that you save the tax on thirty percent of the amount and have to pay tax only for seventy percent of the rent income received.

Monthly Returns are fixed

Since these properties are already engaged by tenants at the time of buying, a lease contract is already signed, safety deposit collected, and lock-in period defined. As a result of this, a monthly return is secure and assured. It is indeed a safe investment.



Rent Escalation and Lock in time

Rent growth is pre-defined in the task of lease.  Rent appreciation is generally fifteen percent after every three years, in a nine year lease.

Talking about lock-in time, it is defined in lease agreement. Lock-in period is the least time frame wherein the occupant cannot vacate the property. The lock in time generally is three years for a lease of nine years.

Conclusion

Thus, you should look out for property for sale in Delhi India and find out what you want. Be it pre-leased property or otherwise; the options are diverse to choose from.

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