There are good options for commercial rented property for sale in Delhi NCR. This will perfectly fit in for the investors who look for regular income from the investment and their money will also be safe. These pre rented commercial property in Noida are available in hot locations and the tenants are multinational companies, banks, retail giants etc.
Reasons that help to decide on Pre-leased property investments are discussed here belowHigh Yields from Commercial Properties
Real Estate investments are vital in the growth of ultra high net worth individuals. If their investment portfolio’s are visited then there will be good amount of Preleased commercial properties like industrial warehouses, Grade ‘A’ office spaces, commercial plots being part of their investment.
If quality tenants are put up then fixed income is guaranteed from the preleased commercial properties. Owners can get lease income consistently for a period of 3-5 years or even more, while in parallel enjoying the capital appreciation.
Lease-hold and free hold are the two types of commercial properties. Lease hold properties are basically given to lease by government bodies, their lease period normally will be 99 years, with facility to extend further. This property gives limited rights to its owners and the investor does not actually own this property.
If free hold property is purchased, the investor becomes exclusive owner of the place. The owner exerts more rights on such property. In India, most of the commercial properties are freehold ones.Factors that decides rental yields of commercial properties
The prime point that determines the yield of pre rented property for sale in Noida is the entry price. The lower is the entry price; the higher would be the yield. The second important factor is the tenant quality with whom the lease gets executed. The rental yield would be 6 to 8% if the tenants are banks (PSU in specific) or insurance company. In above case the rental yield is low but the tenant will be staying for long period.
Return from pre leased commercial properties rented to tenants like MNCs, foreign banks, provides rental yields from 8% to 12% but it is not sure that those tenants will be staying for long duration. Another factor to determine the duration of tenants is that if a sizable amount is getting spent on interiors then those tenants may stay long.
Fundamentals to be considered while Pre-leased property investment
1) All about the Building:
while deciding on investment of rented property for sale in Noida ,the age and the type of the property are crucial things to be looked upon. Grade A office space in a new building in cities like Noida will get good returns. Ceiling height, load sustaining capacity of the floor, column distances are to be properly checked upon before putting up the investment. Presently Green Buildings or Energy Efficient Buildings are in great demand and it would be in more demand in future also. Buildings with amenities like all time power back up, high speed elevators, updated security features shall be looked upon without much thinking.
It is mandatory to know about the tenant before putting property on lease in Noida. The company should have good income and growing potential. Only then the rents shall be got without any delays.
3) Leasing / Lock-in Duration:
Leasing period should be decided thinking upon the market situation. If the rental income is foreseen going upward then short duration of leasing agreement shall be put it, if the market is stable then long duration agreements shall be worked out. It is always better to have a high lock in period. This will be acting as security for the investment done by the owners.
4) Rent Escalations / Deposits:
Refundable Deposit money collected from the tenants should include maintenance charges and Electricity charges for 3 months minimum. If the lock-in period is long then deposit amount should also be more, this will make sure that tenant will be responsible for his activities in the premises. The leasing agreement should have a clause of Annual rent escalation.
5) Property Maintenance charges and taxes:
Before getting the final paper works on purchasing pre rented property for sale in Noida, details like payment of property tax, maintenance charges and any government charges should be checked.
6) Facilities Management:
It is advised to employ good facility management agency to maintain the commercial property. A better maintained property gets good rent at all times. Capital value of well maintained commercial property is very high also.