Reasons To Invest In The Commercial Segment Of Noida

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

The people, who wish to put their money into real estate investments, often choose residential entities for that matter, due to the traditional viewpoint and familiarity with the market. Commercial property on the other hand is an unknown domain for them. Thus, there is some resistance when it comes to investment in that sector.

However, the commercial domain of the realty business has its own set of advantages where investment is concerned. But, most of us do not find the need to venture this field and we usually don't come across the market trends. The lack of knowledge in this domain is the reason why most people refrain from such investments.

The residential entities do offer a certainty in terms of returns but the end profit is considerably lower, as compared to the retail spaces. The higher risk factor is diminishing with increasing demands but it is still present. However, the returns are also quite handsome. Retail properties in Noida or any other preferred locations, are sure to undergo a considerable appreciation in comparison to the housing projects. But the returns are dependent on a lot of factors, a major part of which relies on location. Though, the overall performance of the commercial sector is anyway satisfactory.

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

If one invests in these then leasing is an important aspect of earnings. Most returns are based on the leasing of the property, and residential entities are leased out for a shorter period as compared to retail ones. Thus, this inflicts a constant nagging of finding new tenants. On the contrary, leases of commercial office spaces in Noida and other metros are seen to extend beyond 10-20 years easily, and the security amount involved is larger.

Moreover, trends show that industrial tenants are better renters than residential ones. The investment in business oriented properties in Noida you have a chance to secure a more reliable tenancy which pays higher returns. There are sufficient cases of residential renters, taking illegal hold over the property; however, that is unlikely in industrial ones due to a lot of legal implications. You may also get big business firms as tenants that pay exceptionally high returns and for a longer period. Thus commercial investments are a far better choice. Hence, it is advisable to consider this as an option if you have sufficient insight of the market and enough resources. The retail property are usually priced higher than the housing ones, due to the higher returns involved.

Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: April 3, 2017 — 8:09 am
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