Real EstateWhy Will Your Invest in Pre-leased Commercial Property?

AdminSeptember 24, 2018546 min

Presently, the investors are more interested to invest their money in commercial property as a valid option. By investing in commercial property, the investor can get the opportunities for a good capital appreciation and high amount of returns. The pre-rented or pre-leased commercial properties refer to the properties which have been rented already to a bank or multi-national company or retail shops and are placed for selling now. As these properties are already rented to the tenants from the beginning of purchasing, these will help to have a fixed monthly income. You can also sell these properties according to the rental income. Rental income involves with the gaining of regular return on the investment excluding the capital gain or loss which is expected from the sale. Generally, the return percentage varies within 4.5% to 8%. Pre-leased property in Gurgaon is very attractive to the investors. The return rates for different types of tenants are different like bank-occupied property is within 4.5 to 5.5%, retail shops occupied property is within 5 to 6.5% and corporate office-space occupied property is within6.5 to 8%.

Advantages of pre-leased or pre-rented commercial property

The pre-leased or pre-rented property provides several advantages to the investors.These advantages are:

Ensure return right from the purchasing day: Generally, after purchasing the property the owner of the property can rent to the tenants and the owner will have to find out the tenants and to wait for getting the return. Whereas, the pre-leased commercial property provides return as monthly income from the beginning of purchasing and the result is zero waiting time to get ROI (Return on Investment).

Save the tax: You need to pay tax as the owner of the pre-leased property on received rental income. Normally, 30% of the income is allowed as a standard deduction for repairing and maintenance without depending on the amount originally spent. As a result of this, you as an owner can save tax on the amount of 30% and will pay tax for 70% of the amount as rental income received. You will get the advice from pre-leased property consultant in Gurgaon to invest your money to purchase the pre-leased property to save the tax.

Fixed lock-in-period: Lock-in-period of a tenant is mentioned in the agreement for making a lease of the property and the tenant will not be able to vacate the leased property within a minimum time period which is named as lock-in-period. For leasing of 9 years, a time period of 3 years is considered as lock-in-period.

Ensure low-risk factor: When the property is occupied by the tenants for a fixed period of time, it helps to be ensured to get the rental income as a return for that period of time. The legal documentation is essential for leasing the property, which will support that your investment is safe. For the pre-leased property time period of rent and terms of rent are specified, so your rental income will not be affected by the factors of the current market.

Get bank loan easily: You can get a loan from the financial agency for your pre-leased property up to 90% of the valuation of the property.

Finally, considering all of these advantages of pre-leased property you can make an investment of pre-leased commercial property in Gurgaon.


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