Basics to invest in a pre leased property
Real Estate

Basics to invest in a pre leased property

A pre-leased property is something which is mainly chartered to a company and then it is sold to a particular client. This selling proves also includes the rent. In this case, the purchase of the pre leased property gets assured so that one can get a proper return from it from the very first day after investing in it.

One can look for pre leased property to banks in Ghaziabad where they can easily invest so that returns and profits are high.

When one is venturing to a pre leased property, the risks that are involved are very low or medium. So the profit rate is at least 8.5 to 9 percent per annum. These are balanced out returns because of rent period is ordinarily around 3 to 15 years. At the time of the exit, the owner of the property would earn equity value along with capital appreciation earned on the escalated rent. Henceforth the investors can earn good returns; ranging something around 16 to 20 percent per annum from pre rented commercial properties.

When it comes to pre rented properties, there are mainly 2 types.  The first kind is the one where the lease hold is mainly offered by the government organisations like MIDC.  These properties are leased to the buyers and it is leased generally for a long period of 99 years. Not only this, the lease can also be extended further after 99 years. One can also buy the rights to use the property. So, the thing is when one is buying the property without really owning it then they have limited rights on what to do with the property. The other type is the free hold property. In this case, one can become the one and only owner of the property and also the owner of the land where the property stands. Here the owner has more right and responsibility and in India, most of the transactions regarding pre rented commercial properties happen on a free hold basis.

The commercial sectors also extend loans that can range up to 90 percent of the price of the estate and it is mainly done as a way to simplify and faster it. It is a kind of some uninterrupted buying procedure. This loan facility helps one to bend more on investing their money in a proper pre rented estate because they always assure a very short processing time. Commercial properties also provide a high rental output in the term of 9 percent to 15 percent while all the residential estates offer only 3 percent to 6 percent as rental revenues. These pre rented properties offer the fixed profit. Here, the motto is to rent out to the quality tenants, which can draw less income over a 3 to 5 year period and finally exit with a balanced to high capital acknowledgment.

There are many pre-leased commercial properties in Ghaziabad and one can easily invest in them after checking the location and ambience of the property.

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Alicia Nelson

Alicia Nelson is a professional blogger with over 6 years of writing and media experience. She is a full-time contributor to the Blog and her insightful writing has been enjoyed by thousands.

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