Every kind of property investment opportunity has its own benefits and flaws. No one kind of investment in real estate is suitable for all. While are many options like residential, commercial, agricultural, industrial etc., there are equal legal formalities that need to be followed. Investment is successful when the returns are great and you earn back the investment within a short duration of time. There are two types of investments; income investment and appreciation investment. While the income properties also appreciate over the period of time, the return is more when it is given on lease.
In this part of the series, we will know about the properties to earn income. Let us know in detail.
1. Commercial spaces
India is growing and so are the job opportunities. More jobs mean need more office spaces. Already the shared office spaces are on the rise due to an imbalance between the property demand and supply. The boom in the residential market has shifted to the commercial market. IT industry has shown the maximum demands for the office spaces. We are not just talking about the basic offices, world-class tech-enabled offices are the best way to earn income. Commercial property returns are better and the lease is also for a longer term. All the metro cities are the eye-candy for the investors in commercial projects. There is also no need to find a new tenant after one vacant an office because the lease is generally extended for the next term. Know more about it.
2. Hospitality units
The land is the best investment and if the land is used for the hospitality units like hotels, the returns skyrocket. The owner just gets the benefits while the hotel manager is liable to pay all the charges. The number of hotels is increasing and if it gets established, the return dynamics can be quite rewarding. For the long-term, do not think twice before converting your property into a hotel. Moreover, as the price of the residential units depends on the age of the dwellings, the hotels do not face that. The hotel also needs the storage units, parking lots etc. which are just another form of income producing assets.
3. Shopping units
One place to shop all; who does not like a shopping mall? But they are the good news for the real estate investors too. The malls and especially the offices above the retail shops are in demand. The retail individual shops are preferred less by the people doing 9to5 jobs as they can get out on the weekends and shop all the items at one place. In some cases, the owner also gets a share of the sales by the retail stores in addition to the rent of the store.
If you cannot afford investing in the shopping units, you can own a retail store. A retail store gains the appreciation if it has a good location, right audience, accessibility etc. Having the retail shops at the ground level of the house is quite a common practice in India. The owner gets regular rent and earn easily without moving a finger.
In the next section, we will be talking about the appreciation property. They are also a good investment if done keeping the future in mind and for the long term.