I have a budget of Rs. 4.5mn and am looking to buy a 2-3 bedroom flat in E-11. Need suggestions from experts considering these factors:
1) Future increase in market value
2) Rental income
3) Safe investment
Kindly guide accordingly.
How about buying a shop in this range? It would be a commercial investment+rent as flats don’t appreciate much.
Open to that as well. Kindly share details
If you are looking from investment view point,flats dont appreciate much but if you are looking for some rental then flat and shop is a good option. Btw i would recommend you a plot in this budget.
Here are some of the pros of buying commercial real estate over residential property:-
1. Income potential.
The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties generally have an annual return off the purchase price between 6% and 12%, depending on the area, which is a much higher range than typically exists for single family home apartment (1% to 4% at best).
2.Public eye.
Retail tenants have a vested interest in maintaining their store and storefront, because if they don’t, it will affect their business. As a result, commercial tenants and property owner interests are aligned, which helps the owner maintain and improve the quality of the property, and ultimately, the value of their investment.
3. Limited hours of operation
4.Commercial property leases have traditionally contained clauses dictating that rent reviews are 'upward only', meaning a property's rent can't be less after review than it was before review.
The responsibilities for repairs and maintenance are different; in commercial properties tenants are typically responsible for these costs, while in residential properties landlords are typically responsible. For landlords of residential properties, these costs can absorb much of their rental income - perhaps more than 30% in some cases.
Residential property is also likely to require more management time (and/or cost) than commercial property. This is because of smaller unit sizes, shorter lease lengths, and a greater obligation for maintenance and repairs.
@ Saadi .. Please share details of where i can get a plot in this budget.
@ Is base .. I agree with your points. Can i get a commercial property in my budget in E-11 ?