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Financial Goals for Real Estate Investments in Your 40s

The term Financial Goals has a noble connotation to it. Goal-setters get seen as overachievers. And many believe that individuals who set goals are superior to whose do not. Goals sometimes are regarded as dangerous or unreachable. However, a goal might be as simple as telling yourself that you would clean the dishes before going to bed every night this week. The problem with imbuing the term “goal” with such power is that it makes the concept of goal setting something so daunting that no one wants to try it. If we can all begin to see goals for what they are. A simple indicator progress, a higher percentage of individuals will prioritize goal creation. The 40s are a watershed moment in a person’s financial life. It, like every other stage of the life-cycle, has its set of possibilities and obstacles. Most individuals hit the finance tipping point in their 40s. With their income increasing and spending levelling off. Which real estate goals will help your bottom line the most as an investor, and how will you achieve them effectively and efficiently? What are the Financial Goals for Real Estate? Did you know that firms that set specific goals are 10 times more likely to succeed than those that do not? According to a recent Harvard Business School research, 83% of the population does not establish objectives, and of those that do, 92% fail to fulfil them. First & foremost, why are so few individuals creating goals? Second, why aren’t more individuals succeeding in achieving their goals? The explanation for this is simple: most individuals do not create SMART goals. SMART is acronymous for Specific, Measurable, Attainable, Relevant, and Time-Bound. S.M.A.R.T. is an acronym that may help you define goals for your real estate investments. Fantasizing about your hopes and dreams is not the same as taking the time to sit down, put pen to paper, and create realistic goals. What are the SMART real estate financial goals? SPECIFIC real estate goal: Every real estate goal you set should be as SPECIFIC as possible. Define each phrase inside the goal and provide concrete activities to take next. According to the same Harvard Business School study, writing down your goals increases your chances of achieving them by 14%. So why not go the additional mile to give yourself an advantage? MEASURABLE real estate goal: MEASURABLE goals will keep you motivated by allowing you to measure you progress. You’ll be to judge how much you’ve progressed and how much work still needs to get done if you define objectives using metrics and KPIs. ATTAINABLE real estate goal: People sometimes have real estate goals that are unattainable. The objectives you set should be hard enough to drive you to your limits and drain your resources, yet achievable. RELEVANT real estate goal: Setting appropriate goals entails ensuring that stated targets are relevant to the present condition of your company operations. Establishing that you want to be the CEO of a Commercial real estate business someday while continuing part-time wholesaling properties in your local market to pay the bills qualifies irrelevant. TIME-BOUND real estate goal: The final step is simple: set a timeframe for your goals. It is one thing to declare you want to better your real estate education this year. It is quite another to commit to attending a networking event, club meeting, or industry conference twice a month for the next 6 months. Real Estate Goals that you can set Portfolio Diversification: For inexperienced investors, diversifying your portfolio may appear to be a real estate aim. A prevalent misconception is that single home investment is a secure and reliable strategy to assets protected. In reality, the inverse is true. The fundamental reason for diversifying your real estate holdings is to lower risk. Networking: Building & expanding your network should be a continuing real estate aim not only for 2023 but for the rest of your career. When you consider expanding your network as a continuous real estate objective, you will find yourself with not just a large number of contacts but also higher-quality relationships. Conclusion The best method to achieve long-term success in real estate is to set smart goals. As a result, the next time you find yourself daydreaming about a financially free future, take a pen and paper and jot down your goals. However, simply writing down your objectives is not enough. You must also ensure that each goal you create is SPECIFIC, MEASURABLE, ATTAINABLE, RELEVANT, & TIME-BOUND. Asset Yantra is an online investing platform that offers real estate investment advice in major Indian cities such as Bangalore, Hyderabad, and Chennai. Asset Yantra provides secure investment opportunities and rewarding properties in terms of financial appreciation and a better lifestyle. Also Visit another website of ours for investment i.e., Gak Group Financial Goals for Real Estate Investments in Your 40s FAQs How should your finances look in your 40s? According to financial advisers, you should have 3 times your salary in retirement savings by the time you reach the age of 40. So, if you make Rs.44 lacs each year, you should have a total of Rs.1 crore in your retirement-related accounts. How do you build wealth in real estate? One can build wealth in real estate by investing in the following: Rental Property Commercial Real Estate House Ownership House Flipping Partnerships Distressed Sale

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4 Top Reasons to Invest in Real Estate

Passive Income, Equity, Monthly rents, Tax breaks. These are some of the benefits that come with investing in Real Estate. But while investing in apartment buildings, commercial properties and single-family homes can bring extra income each month and big paydays. It also comes with risk. The goal is to invest in properties that increase in value over time. If you understand the risks and are willing to do the research, finding the best places to invest in real estate could provide you with a solid income boost. What is Real Estate Investing? You have plenty of options when it comes to investing in real estate. You can purchase a single family home, rent it out and collect monthly rent checks while waiting for its value to rise. You can go bigger and invest in an apartment building with dozens of units, collecting a steady stream of rent checks from your tenants each month. The key is to do your research to find out which type of real estate investing is the best fit. REITs Real Estate Investment Trust (REIT) is a company that’s owns, operates or finances income-producing real estate. REITs allows anyone to invest in portions of real estate assets the same way they invest in other industries. Through the purchase of individual company stock or through a mutual fund or exchange traded fund (ETF). Residential Properties Residential Property is any building or unit zoned and purposed as living space. It’s one of two general categories of real estate, the other being commercial property. Residential property is usually owner-occupied, but not necessarily. Commercial Properties Commercial Property refers to immovable property used for industry. Commercial property typically refers to a building that house businesses. Land that is intended to make a profit, and larger residential rental properties. House Flipping Investors who want to make money quickly often turn to house flipping. House flipping is a form of direct real estate investment and can be done in a variety of ways. 4 Top Reasons to Invest in Real Estate Now There are 4 Top reasons to invest in Real Estate, they are as follows: The Potential for Long-Term Appreciation: Real Estate has the potential to appreciate in value over time, especially in areas with strong economic growth. This can provide a significant return on investment for those who are willing to hold on to their property for the long-term. It can be measured through the change in the price of a property from one period to another. For example, if a property was bought for $100,000 and is now worth $120,000, it has appreciated by $20,000. Historical real estate appreciation charts help show economists and analysts how property values have changed over time. RE, especially in urban areas, is bound to appreciate due to scarcity of land. It is said that the longer you stay invested in real estate, the more money you make. If you’re buying real estate as an investment, consider investing in high growth potential locations to maximize your returns. 2. Cash Flow: Renting out a property can provide a steady stream of passive income. This can help to offset the costs of owning the property & provide a source of income that can be used to fund other investments. Cash flow is the net income from a real estate investment after mortgage payments and operating expenses are covered. Real estate provides a considerable ability to generate cash flow. A steady monthly rental income is an excellent incentive of passive income and offers long term financial security to the investor. In many cases, cash flow only strengthens over time as you pay down your mortgage – and build up your equity. 3. Tax Benefits: Owning real estate can provide significant tax benefits, such as deductions for mortgage interest and depreciation. These deductions can help to lower the overall cost of ownership, making real estate a more attractive investment option. Tax deductions on Real Estate can offset income and reduce overall taxes. There is no self-employment tax on rental income. At the same time, the government offers tax breaks for property depreciation, insurance, maintenance and repair expenses, legal fees and even interest paid on mortgage. RE investors get lower tax rates for their long term investments. Reasonable costs are owning, operating and managing property are easily deductible. 4. Diversification: Investing in real estate can provide diversification in your portfolio, reducing your overall risk. Real Estate investments are often uncorrelated with the stock market, which can help to insulate your portfolio from market fluctuations. Many people never invest, and the ones who do rarely venture from the stock market. Perhaps this goes without saying, but the most successful investor is always the most diversified, as well. It doesn’t matter if you are an accredited or non-accredited investor, you can still invest in this asset class. It’s no coincidence that those who diversify have the most chances at success long-term. Conclusion RE investors make money through rental income, appreciation, and profits generated by business activities that depend on the property. The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage. Real estate investment trusts (REITs) offer a way to invest in real estate without having to own, operate, or finance properties. Asset Yantra is an established Indian real estate investing website that offers opportunities in Chennai, Hyderabad, and Bangalore. Also Visit: Gak Group for making investments. Gak Group is a well-known real estate investing platform in India that offers chances in Chennai, Hyderabad, and Bangalore.

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Commercial Real Estate Leases: Different Types and which is the Best?

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Leasing commercial space is a significant financial commitment and requires commercial real estate leases. These leases can be intimidating, especially because they are a huge commitment that can be costly. However, they are not as difficult as many people believe. A commercial real estate lease, like most other legal transactions, should not be taken lightly. Here’s an explanation of the many forms of commercial real estate leases and what they imply for renters and landlords. What are Commercial Real Estate Leases? Commercial leases, as opposed to residential leases, are an arrangement between a renters (company) and landlord that specifies the property only for commercial or business use. What makes Commercial Leases Unique from Residential Leases? It’s critical to understand that commercial and residential leases are fundamentally different, practically and legally. Here are the primary differences between them: No Standard Formats: Many commercial leases are not established on a standard form or agreement. Instead, each commercial lease gets tailored to the interests of the landlord. Less Consumer Protection Legislation: Most consumer protection regulations that apply to residential leases do not apply to commercial leases; for example, there are no security deposit limitations or requirements safeguarding a tenant’s. Long-term and legally binding: A business lease is not readily broken or changed. It is a legally binding contract, and frequently a substantial sum of money is at risk. A lease in the commercial leasing market normally begins at 3 years and might contain options at specified intervals that will keep your organization there for an extended period. Negotiability and adaptability: Because companies frequently require particular amenities in their locations, and landlord are typically eager for tenants and prepared to extend special offers. Commercial leases are generally subject to considerably more discussion between the business owners and the landlord. Types of Commercial Real Estate Leases Lease formats for commercial real estate can vary massively based on the property, tenant profile, and business model of both the tenant(s) and the property operator. It makes no difference whether you’re a seasoned pro or brand new to the commercial real estate industry. Knowing them will help you decide which one to employ for the circumstance. However, we will advise you which one is better for each occasion. Net Lease: Net leases are the most popular type of commercial real estate leasing. The renter must pay the base rent plus a portion or all of taxes, maintenance, and insurance under these leases. Furthermore, you get to shift some of the risks to the renter, providing an additional incentive for them to make the most of it. It’s also worth noting that there are many kinds of net leases: Single Net Lease: Rent plus one of the three previously indicated running costs constitutes a single net lease. Tenants on a single net lease pay a fixed rent plus a portion of the property tax (which would get negotiated with the landlord). Double Net Lease: Rent plus two of the three running costs is a double net lease. A double net lease is comparable to a single net lease in that the tenants pays a portion of the property insurance plus the property tax. Triple Net Lease: Rent plus all three primary running expenditures gets referred to as a triple net lease. A triple-net lease is an agreement between a tenant and a property operator in which the tenant is responsible for all main operational expenditures at the property. The Percentage Lease: The percentage lease, as the name suggests, is based on the tenant paying basic rent plus an additional percentage. The monthly basic rent is the amount is a predefined proportion of the property’s sales revenue. Because of the necessity for the %, percentage leases are typically employed for retail firms and malls. The Full-Service Gross Lease: The landlord normally benefits from the prior two commercial real estate agreements. However, if you are the tenant, you will be glad to hear that the full-service gross lease will benefit you the most. In this sort of lease, the landlord is required to pay the majority, if not all, of the customary costs. Takeaway There are just three basic types of business leases to be aware of. Each offers advantages for the individual side, and each is changeable, so you’ll need to properly discuss the agreement if you want the greatest conclusion. Asset Yantra is a well-known portal in India that provides real estate investment opportunities in Chennai, Hyderabad, and Bangalore. It provides feasible commercial space investment alternatives via fractional ownership and crowdfunding. The IRRs vary from 14 to 21%. Commercial Real Estate Leases: Different Types and which is the best FAQs What is the most common type of commercial lease? The most prevalent kind of lease in commercial buildings is a triple net lease (NNN lease). The rent under a NNN lease does not include operational expenditures. Utilities, upkeep, property taxes, insurance, and property management are all examples of operating expenditures. What are the 4 primary types of leases? There are different types of leases, but the most common types are absolute net lease, triple net lease, modified gross lease, and full-service lease.

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REITs vs Direct Real Estate: Confused about Where to Invest? Here’s how to find the perfect fit for you

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Alternative investments like direct real estate and REITs are some of the most popular and trending topics in the world of investments. If you’re an investor who’s looking for a solid entry into this market, then you should consider Real Estate Investment Trust vs Direct Real Estate as one of your first considerations. REITs can be defined as real estate investment trusts that handle your investments and offer you a wide array of lucrative investment options in one go. To be more precise, REITs are organizations that act like trusts and can be like mutual funds. Investing in REITs has many advantages, which are more than the ones you get from investing in direct real estate. But, if you wish to handle your investments autonomously, then investing in direct real estate will be the perfect fit for you. Let’s get deeper into the world of popular alternative investments like commercial real estate and REITs, by learning about them in detail. So let’s go ahead. What is Direct Real Estate? Direct real estate can be defined as the practice of buying a piece of commercial real estate property, such as a business area or residential apartment directly, according to the wishes and requirements of a person. Investors investing in direct real estate earn their income through the help of rental income, appreciation, and the profit margin generated from various business activities that depend on the asset. Benefits of investing in Direct Real Estate One of the most prominent advantages of investing in direct real estate is that it generates a good amount of revenue. And also generates benefits from various tax exemptions using an income break. Let’s take an example that you can deduct various costs which are incurred during the maintenance and repair of the real estate asset that you’ve bought. Another tax-exempt is for depreciation in the value of the asset in commercial real estate that you’ve bought. You can reduce this from your income and thus save a lot on the taxable portion of your earnings. Also there’s a good chance that the property or asset that you’ve bought using direct real estate investment can increase in value over time. Although the real estate market goes up and down sometimes, prices generally rise by a large % every year. Other benefits of investing in direct real estate in India include that you possess a higher degree of control over making decisions regarding your asset. Which is usually not the case when investing in REITs in India. Downsides of Investing in Direct Real Estate One of the main downsides of investing in direct real estate is that you have to spend a lot of time and energy if you want to be successful. Some of the things you have to deal with include maintenance, emergencies, tenant issues, etc., as you’re the direct legal owner of the property. Gathering the required capital or finance is another significant challenge when you’re investing in direct real estate. Also, direct real estate is not liquid. It means that you cannot quickly sell off your assets during an emergency, whenever you need money. Finding the right buyer will take time and effort, which makes selling direct real estate assets a hectic process. What are REITs? REIT are corporations that are responsible for the management of various residential and commercial real estate investments. It is a general corporation that is aimed at providing a wide variety of investment opportunities to investors who want to gain profits by pouring capital into this business instead of making direct real estate investments. More than 225 REITs are listed on the stock exchanges in the United States. Investors in 35 countries around the world have registered REITs and offered them to investors. Benefits of REITs Investing One of the biggest benefits of investing in REITs is that investors don’t need to worry about any managerial aspects of the assets. Everything is managed by the organization, thus minimizing the chores and helping the investor focus on other areas of their life. Also, the capital requirements are not that high, which means that one can invest in real estate with an amount much less than that of direct real estate investments. REITs also offer up to 90% of the taxable income to the investors and a 5% dividend yield. Downsides of Investing in REITs The Indian REITs business seems to be on a roll in recent years. The returns have been excellent, and many individuals have made a fortune by investing in REITs. The fact that REITs are heavily leveraged is one of the possible drawbacks of investing in them. This implies that if underlying property prices fall, REITs will be obliged to sell the property and pay off the mortgage, potentially resulting in large losses for investors. REITs vs Direct Real Estate; which one should you choose? In India, both REITs and Direct Real Estate are popular investment options. But which one should you choose? Here’s a look at the Pros and Cons of each option to help you make a decision: REITs vs Direct Real Estate: Pros and Cons REITs Pros Diversification: By investing in a REIT, you can get exposure to a diversified portfolio of properties. This helps to mitigate the risk associated with any single property. Liquidity: REITs are listed on stock exchange, which makes them more liquid than direct real estate investment. This means you can easily buy or sell your units in a REIT. Professional Management: REITs are professionally managed, which means you don’t have to worry about the day-to-day management of the property. Cons Lower Returns: The returns from direct real estate are typically higher than those from REITs. Higher Fees: REITs typically charge higher fees than direct real estate investments. Direct Real Estate Pros Higher Returns: The returns from direct real estate are typically higher than those from REITs. Lower Fess: Direct Real Estate investments typically charge

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6 Important Questions to Always ask before Investing in Commercial Real Estate

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Buying commercial real estate is a big decision, and it’s important to do your research before making your purchase. There’s no magic formula for buying commercial real estate, but there are some questions you should always ask when considering an investment in this asset class. In this post, we’ll outline six key questions you should be asking before investing in any type of commercial property. Also Read: Commercial Real Estate: A smart choice for today’s smart investors How will financing your investment affect your cash flow? Financing your investment is one of the most important factors in commercial real estate investing. If you cannot afford it, do not buy it! You need to know how much work and money you’re willing to put into your property before buying it. If you have bad credit or no credit at all, finding financing might be difficult for some buyers. This can be especially true if they are looking at properties outside of their price range (i.e., larger properties). To avoid this situation, remember that things like “appraisal” fees – which will increase if financing isn’t available. And can be added onto the purchase price when buying with cash instead of borrowing against future earnings from rental income or sales prices over time. So long as this process doesn’t result in any additional debt obligations after closing day has passed. Property performing currently? The performance of a property is one of the most important factors when deciding whether or not to invest in commercial real estate. This can be sorted out by looking at: How much rent is being collected? What are the expenses associated with operating the business, including taxes, insurance, and maintenance? What is being spent on debt service (i.e., interest)? How many people are living or working there now or during some period in time (occupancy rate)? Risks of investing in this location? Location is one of the most important factors in commercial real estate. If you want to purchase a building or land for your business, it’s crucial to know what kind of neighborhood you’re investing in. Are there any potential problems with the location? Are there other businesses nearby, and will they cause congestion on their own? The answers to these questions can help determine the risk associated with buying property in that particular area. If you want to know the best place for your business, many factors need to be considered. If you’re looking for an area with great access and easy transportation. Then knowing the exact location of each building might not be enough information for now. But if there are other factors at play (like flood risks). Then knowing more than just where exactly everything sits within its physical space could give insight into whether or not this investment would work out as planned once completed. Potential profit margins for the property? Profit margins are a crucial factor in determining if an investment is worth it. They can help you determine whether or not the property will generate enough money to cover your costs and make a profit, as well as how much of that profit you’ll receive. Your commercial real estate purchase may have different profit margins depending on its location, size (the square footage), age (how long the building has been standing), and other factors like vacancies or tenant turnover rates. These factors all impact each asset’s ability to generate income for investors. And since they’re beyond your control when purchasing a piece of commercial space. Knowing what kind of return on investment you can expect will be key in deciding whether or not buying something is right for you! What are the projected capital expenditures for this property? Capital expenditures are the costs of maintaining a property, from small items like paint and flooring to larger ones, like large-scale renovations. They can be high on some properties and low on others. The reason for this is that some properties require more maintenance than others. For example, an old office building might require more renovations than an apartment building or condo complex. Who will manage the property, and how much work will that involve? You should also ask about the property manager’s responsibilities. Are they simple to collect rent and manage maintenance issues, or do they also oversee all aspects of operations (such as marketing)? You’ll also want to know whether your prospective management company has any special qualifications or certifications to help ensure that it can handle its duties effectively during peak seasons (e.g., during holiday periods). In addition, you’ll want to make sure that each potential company has experience with similar properties in other locations where it has managed properties successfully before. And if so, how long ago was this experience obtained Finally, does this company have a track record for success in different types of investment properties, such as apartment complexes versus office buildings versus retail centers? Knowing the answers to key questions can help you evaluate whether a commercial real estate investment is right for you. There are many reasons why commercial real estate can be a good investment, but it’s important to do your homework and ask the right questions before making any decisions about investing in this sector of the economy. Conclusion Now that you have read through this guide and are ready to start investing in commercial real estate, it is important to go through the steps above. It’s also important not to rush into deciding whether or not an investment will work for you. Instead of rushing into something before doing your research, take time out for yourself and do some reading on the subject first. You can choose a reliable investment platform like Asset Yantra for your commercial real estate investments.

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Pre-Leased Commercial Real Estate Property Investment is Trending Right Now – and the Best Investment

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Pre-Leased Commercial Real Estate Properties are those, which already have tenants and ensure fixed income or assured returns.. Real estate investing, considered one of the most significant capital appreciation channels, has emerged as a secure, sensible, and profitable alternative for many, providing many types of diversification. Commercial real estate may be regarded as a costly affair due to the significant investment required and is the best suited for UHNIs, or corporates. However, this is not the case. Property investing has grown in popularity and attracted the attention of professionals alike throughout the years, and this investment is now well within their grasp. According to JLL India research, Pre-Leased Commercial Real Estate properties in the range of Rs.5-50 crore scattered throughout the country’s top 6 cities, followed by tier-2 towns, are on the radar of investors. Growing potential in pre-leased buildings is being viewed as an appealing asset class, particularly by high net-worth individuals (HNIs), who are pursuing a greater slice of the Indian real estate market, especially commercial real estate. What are pre-leased commercial real estate properties? Properties that have been pre-leased or pre-rented already have occupants and a set rental income. The primary advantages of these assets are consistent income, no waiting time, and increased capital appreciation. Pre-leased properties are those that are already rented out and earning rent from the tenant at the time of sale, and the investor proceeds with the lease to receive consistent returns. The Perks of Pre-Leased Commercial Real Estate Property No waiting period for the investor: When an investor purchases a pre-rented commercial property, he acquires the prior owner’s rents and tenants. Investors in pre-leased property do not have to wait for a tenant because it is already rented, and they may begin receiving monthly rentals on the first day after the sale deed is transferred. Capital Appreciation: A pre-leased property has a good chance of capital appreciation over time since the value of pre-leased property often rises when compared to unoccupied properties. Liquidity is very high: Pre-leased property is a profitable alternative in terms of return on investment. So, while finding a potential buyer in the real estate market may be difficult, pre-leased commercial properties are simple to sell. Risk reduction; Purchasing a pre-rented home is always a secure investment because the property is rented for a certain period. Pre-leased properties provide fewer risks to investors since they provide assured rental income with high returns. Hike in Rent: Buyers of pre-rented houses do not have to be concerned about the rental increases. Renewal of lease agreements also ensures periodic rental rises. It the lease is for 9 years, the rent will usually be increased by 15% every three years. Loan based on Rental Income: Term loans against the rental revenue of a pre-leased property can help investors raise more money on the underlying value of their commercial property. Stability: Pre-rented commercial properties are the healthiest and most secure investment since they provide more stability and medium to the low risk to investors. Demand for pre-leased commercial buildings is also predicted to increase within the next year. Some Safety Measures When Purchasing Pre-Leased Commercial Property Before investing, the buyer should conduct the necessary due diligence to guarantee that the property and its tenant are safe to inherit. Before investing in any pre-leased property, investors should address a few problems. High Capital Value: The buyer must evaluate the vacant capital value of pre-leased property since the market value of the pre-leased property is always greater than the market value of the unoccupied property. The market value of the pre-rented property should ideally be no more than 15-20%. A Tenant’s Credibility: Before closing the transaction, the investor must examine the tenant’s credibility and creditworthiness. The main goal is to ensure that the tenant pays the rent on time and does not quit the leased premises before the contractual period expires. Lease Period: An investor should also look at the lease’s terms. It is essential to match the business lease period. Finding new renters after a contract expires is usually a time-consuming task. Conclusion An investment in a commercial real estate property is a safe and lucrative avenue providing multiple benefits, such as capital appreciation, regular income, secured property, and compliance information. Asset Yantra is India’s premier and preeminent commercial real estate investment organization, with a presence in three cities. It provides a full range of tailored and end-to-end commercial investments. And advisory services to its clients, backed by its experience in real estate and market information. Asset Yantra allows you to invest in commercial real estate via fractional ownership starting at Rs.25 lacs. IRRs range from 14 to 21%. To learn more about how we may assist you with your commercial real estate investing journey, please click the above link. Pre-Leased Commercial Real Estate Property Investment is Trending Right Now – and the Best Investment FAQs What is the meaning of pre-leased? A pre-leased property was already rented out at the time of selling. How does a pre-lease work? A lease agreement is entered into between a landlord and a potential renter to engage in a lease at a later period, subject to the fulfillment of specific criteria.

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Commercial Real Estate: A smart choice for today’s smart investors

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Investment and real estate are the first thoughts that come in mind for Indian customers. This is because this market area is often seen as a safe choice for investing. But, commercial real estate has gained popularity over time. And, investors are now increasingly eager to invest in commercial real estate. What exactly is commercial real estate? To begin, it’s define commercial real estate. In layman’s terms. Commercial property is any property that is not classified as residential property. These assets include naming a few, offices, buildings, shopping malls, hotels, and factories. Residential property is used by a single person, whereas commercial property is utilized by several people. Whether we are talking about commercial property for investment or sale, the decision is always advantageous. But, an investor should always use extreme caution when investing in real estate. Commercial real estate: A Smart investment option Commercial Real Estate (CRE), an important component of the real estate market, often consists of commercial, retail, and office properties. Back in 2020, the pandemic had a tremendous influence on the real estate market, particularly the commercial component. It was, however, resilient in its approach and therefore swiftly embarked on the path to recovery. The market is already expanding rapidly, and according to Mordor Intelligence, the Indian commercial real estate industry would increase at a CAGR of 13% from 2022 to 2027. Investment in commercial real estate is increasing in tandem with this expansion. According to KPMG, the resumption of business normality and the growth in flexible spaces, along with technology improvements, will especially boost this trend. Shop cum Offices (SCOs): A Trending Commercial Real Estate Concept The Haryana government is behind the Shop Cum Offices (SCO) idea. This style combines commercial real estate and office space in the same building, particularly in excellent locations. They are freehold plots with basic infrastructure that may be constructed and customized according to the needs of the investors. The land is completely owned by the owner. Banks, healthcare centers, retail stores, cloud kitchens, dining establishments, and other properties are located on the bottom floor, while offices are located on the top floors. Such properties see a lot of traffic. In addition, capital appreciation is ideal, the stream of lease revenues is consistent, and the risk levels are low. It is most recent trend that is propelling the commercial real estate sector. The Haryana government’s commercially planned colony strategy is critical in propelling the SCO segment. Encouraged by this initiative, developers are marketing this notion as a real estate asset, notably in Gurgaon and Faridabad. SCOs are becoming a popular asset type for investors looking to diversify their portfolios. This category is attracting the attention of commercial real estate investors due to its numerous benefits and ability to combine retail and office space. Initiatives by the Government Deen Dayal Jan Awas Yojana, an affordable housing project The Haryana state government started the Deen Dayal Jan Awas Yojana, an affordable housing project, in November 2016. It is an effort aimed at encouraging the building of high-density planned communities in Haryana’s medium and low potential cities. They are being developed in a desirable position since the region is well connected to Delhi through NH8, SPR, and Sohna Road. Cyber city, Golf Course, Sohna as well as hospitals, hotels, retail outlets, educational institutions, and so on, are all nearby. Southern Peripheral Road: boosting commercial real estate development Another major example of the commercial real estate segment being a feasible investment opportunity is the fact that the Southern Peripheral Road (SPR) is attracting investors’ interest. This 845.5 crore initiative is anticipated to revolutionize the real estate market. The main reason is that it will connect Golf Course Extension Road, NH-8, and Sohna Road. Furthermore, different commercial real estate projects such as IT parks, retail malls, and stores cum offices, and so on are being built. When finished, it will not only promote the real estate sector but also serve as a preferred investment location for investors. According to the ANAROCK study, SPR will have a total availability of 3500 units by Q2 2022 and 2900 of these are currently under development. The project has acquired funding and clearance for reconstruction, which is projected to be finished by 2025. Conclusion Commercial real estate properties have an advantage when it comes to investing in today’s times for a variety of reasons. The key advantages of investing in commercial real estate include higher yearly rental appreciation, lifetime asset value, and a rise in demand resulting in a larger long-term return. The Shop Cum Offices concept is gaining traction with investors, owing to the development of hybrid work practices. Furthermore, the Southern Peripheral Road and then Deen Dayal Awas Yojana plan are promoting commercial real estate investments. Asset Yantra is an established Indian real estate investing website that offers opportunities in Chennai, Hyderabad, and Bangalore. It provides realistic commercial real estate investment choices like fractional ownership and crowdfunding for as little as Rs.25 lacs. IRRs range from 14 and 21%. Our goods, on the other hand, are classified to fit different economic levels of investors. The 3 categories are Growth, Growth Plus, and Yield. Commercial real estate: A smart choice for today’s smart investors FAQs: Is investing in commercial property a good idea? When compared to other property kinds, commercial real estate gives exceptional appreciation over a longer length of time. Investing in a quality commercial property via REITs or fractional ownership may also deliver great profits with a much smaller and more manageable cost. How does commercial property investment work? An investment in commercial real estate often requires a substantial sum of money that no single retail investor can offer. Real estate investment trusts (REITs) and fractional ownership are the two most frequent ways to invest in commercial real estate (CRE).

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6 Signs of a Healthy Commercial Real Estate Market

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Investments have their level of risk. There is a certain element of danger with commercial real estate as well. However, keeping an eye out for specific market indicators might help an investor stay ahead of the game and be lucrative. Investments are inherently risky. Along with the danger comes the opportunity to make a lot of money. What matters is that you understand your risk tolerance and how to discover the finest opportunity in whatever investment choice you choose to pursue. The same criteria apply to commercial real estate, which is a rather safe investment choice. The trick is to understand the characteristics of a solid commercial real estate market. So, let’s go through the key facts regarding a fantastic commercial real estate market – India – and how you may find additional potential markets based on the indicators you see in India. Commercial real estate is a solid asset class due to its physical form, isolation from most other market influences, and typically consistent appreciation rate. As a result, it naturally follows that any market that benefits from these characteristics would be beneficial to commercial real estate. Signs of a Healthy Commercial Real Estate Market Growth: A robust business and development infrastructure is essential for commercial real estate. The greater the number of firms and the faster their growth, the greater the multiplication of places & assets that may be employed by them. Despite the impending epidemic, India has experienced an increase in the number of new firms, as well as wider and faster uptake of new technologies. So, without a doubt, the first indicator is growth. Government Policies: Moving on to the 2nd point, growth is heavily reliant on biz-friendly government policies. The recent presentation of the Union Budget 2021 placed a strong emphasis on the development of infrastructure & real estate. In addition, Maharashtra gave tax breaks for builders and developers. The stronger the market, the better the policy orientation. Rate of Vacancy: The 3rd critical factor is the Vacancy Rate. It is just a proportion of the commercial real estate assets that are currently available for occupation. There are high periods of economic activity when these rates are relatively low, and others when they skyrocket. Just keep in mind that an average rate of 4% – 5% works well for a strong portfolio. Location: Even within the same market, vacancy rates might vary based on location. Assume a market contains assets for both manufacturing units and offices. The vacancy rate for one asset or both might alter depending on what business comes up in the location. Tenants: A renter is always required in any type of real estate investment. After all, the tenant’s rent is the foundation of your monthly earnings. When considering a possible commercial real estate market for investment, keep tenancy in mind. Tenants that are stable and well-established are always the best bet. Dynamics of Market: Market dynamics are not difficult to grasp. It only takes a lot of data collection & correct analysis. Even throughout the pandemic, the Indian commercial real estate market remained stable, & demand for offices, warehouses, and other asset types climbed in 2021. Creating a Solid Commercial Real Estate Investment Portfolio While commercial real estate is one of the most reliable asset classes accessible, there are basic ground rules that an investor may follow to gain significant rewards. When constructing your commercial real estate investment portfolio, keep the following points in mind: A long-term investment is essential for constructing to corpus through commercial real estate. Diversify your portfolio by utilizing several asset kinds in various marketplaces. There is no such thing as “guaranteed returns”. Keep an eye out for such advertising. Your portfolio’s appreciation is determined by the market rental rate and the vacancy rate. Conclusion It is insufficient to be happy with a single market. Depending on your risk tolerance, you may experiment with different asset classes and markets to see how investments in various circumstances might help you achieve your goals. The Asset Yantra method of commercial real estate investing via fractional ownership is an ideal way for investors to enter the commercial real estate market. It is a high-end Indian real estate investment platform with properties in Chennai, Bangalore, and Hyderabad. It offers commercial real estate investment opportunities such as fractional ownership and crowdfunding starting at Rs.25 lacs. IRRs range from 14 to 21%. To learn more about how we may assist you with your commercial real estate investing journey, please click on the link above. Do not miss: When is the best time to invest in commercial real estate?

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Why is real estate investment the best investment OPTION for NRIs?

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Why Is It The Perfect Time For NRIs to Invest in Real Estate in India? Opportunity Created Due To Currency And Foreign Exchange Rate India’s rupee ’s valuation against the US dollar $, with the exchange rate falling from Rs 68+ to Rs 80+, has created an opportunity for NRI investors looking to invest in Real Estate sector in India. There is a drastic increase in search traffic from NRIs looking to invest in properties in India. Real estate investing has always been a popular method for NRI investors. Currency devaluation increases the value of capital, so take advantage of this increased purchasing power in real estate investments. Indian Real Estate Market Robust Growth. Adding India based Real Estate assets to your portfolio provides a safer asset that grows in value over time and allows you to recoup some of your original investment through monthly rental payments. No wonder investors from countries with healthy Indian immigrant populations such as the United States, United Kingdom, United Arab Emirates, Singapore, Australia, Saudi Arabia and France are making inquiries to buy properties in India. Post pandemic most NRI investors are exploring purchasing larger properties, even preferring 3BHK and 4BHK units over more affordable options. This preference is in line with an increasing demand for more larger living spaces, where urban residents are ready to pay a higher premium for greater comfort and lifestyles. Leveraging PropTech & Digitisation One can leverage a mix of PropTech, digitisation, and consultant services to help you identify the most suitable investment options that best suits your specific investment objectives. Market trends, pricing, project updates, developer/builders profiles, RERA approval status, etc. are available at your disposal through proptech platforms, while dedicated consultants can help one to reduce the confusion and time associated with identifying the most suitable investment options. Alternative Real Estate Investments Trends While many NRIs are considering investment in properties in both residential and commercial sectors, there’s an increasing trend of investing in alternative and unconventional real estate investments such as Non-Convertible Debentures (NCDs), REIT, Fractional Ownerships, CoLiving Spaces, etc

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is there any association between the residential and commercial real estate?

Is there any Association between the Residential & Commercial Real Estate Markets?

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Investors in commercial real estate industry are frequently interested in the performance of residential pricing. Let us look at how the residential and commercial real estate market link, as well as what investors may do to capitalize on this relationship. Navigating the Residential & Commercial Real Estate Markets The residential & commercial real estate sectors are highly correlated. When the commercial real estate market is robust, so is the need for housing. This is due to individuals relocating to locations with high work opportunities. The association arises because individuals prefer to reside near where they work. When there is a lot of employment available in a certain region, people will relocate there to be closer to those jobs. As a result of increased demand for housing in that location, prices will rise. When the commercial real estate market is slow, workers will leave in pursuit of better job opportunities elsewhere. This reduces demand for housing in that location, causing prices to decline. Investors that understand this relationship can take advantage of it. For example, if they feel a region’s commercial real estate market is set to improve, they can purchase residential property in that area before prices begin to climb. By studying the movement of residential vacancies and growth, one may predict how commercial real estate will perform shortly and if the trend will continue. The Market is Altering Because the commercial real estate market is always changing, so is the link between the residential & commercial real estate sectors. For instance, previously, the two markets were highly connected, but today’s factors might allow both markets to appear uninterested in one another. However, the relationship continues to exist. This is due to the globalization of the commercial real estate market, with corporations seeking locations that provide the finest personnel, facilities. And cost-efficiency. As a result, several formerly popular office markets may experience a temporary drop in demand. The shifting market has also had a significant influence on the residential real estate market. To recruit and keep workers in these relatively new office locations, developers are constructing more flats and efficiency that offer high-end facilities while remaining inexpensive & conveniently located near public transit. Understanding these shifts is critical for making educated investment decisions in both the residential and commercial real estate sectors. All who comprehend how both markets are changing will be able to capitalize on possibilities in both industries. Concerned Cities We are talking about the office space-using industries with the biggest concentrations of employment: professional & business services, banking & insurance, information technology, and real estate. These are also populous states with strong rates of economic growth. Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune are among them. Demand for enterprises in the professional and business services sector, which encompasses a broad range of industries like retail, manufacturing, information technology services, and engineering, drives the commercial real estate market in these locations. Let’s have a look at the top and lowest residential real estate prices in the main cities. Over 6 months, the price change in INR per sqft in Mumbai has been roughly 6%, while Bengaluru tops the list with a 9% price change over a year. In terms of commercial real estate, Bengaluru has experienced a 13% increase in rentals per square foot over 12 months, as well as an 11% increase over 6 months. On the low end, Ahmedabad, Chennai, and Kolkata have witnessed the smallest 12-month rent rise, at zero. While the markets in Ahmedabad and Chennai exhibited no change over 6 months, the Delhi-NCR commercial real estate market recorded a 1% decrease. Do not miss: 6 Signs of a Healthy Commercial Real Estate Market What Influences Price Differences? The cost of a house or office is determined by a variety of criteria, like location, quality, size and availability. The location is the most essential aspect in deciding the price of a house or workplace. The price of a home or office is also affected by its quality. Homes and offices in prominent districts that are well-kept are typically more costly than those in less attractive places or need renovation. Size is another essential consideration when determining the cost of a house or workplace. Apart from that, one must consider the market and the preferences of businesses while establishing office sites. Commercial real estate locations might vary greatly depending on the sort of business. Bengaluru has been a solid player in the commercial real estate industry, with rental prices rising significantly throughout half-yearly & yearly periods. Kolkata has a wonderful market for residential real estate, but it does not score well in the commercial real estate market. Affordable housing does not automatically imply that people would flock to the city in search of work. Similarly, while Mumbai’s residential sector has grown rapidly, its commercial real estate market has suffered significantly. Infrastructure is a crucial factor in determining whether or not individuals are willing to relocate for office searches. People are hesitant to take up more space in cities where the time it takes to go to work and back surpasses the norm by a significant amount. Final Takeaway The commercial real estate market is strongly linked to the residential real estate sector. People are more inclined to buy or rent a property when the economy is robust and they are optimistic about their work prospects. This increasing demand for homes raises prices while also encouraging new buildings. The opposite is also true. People are less inclined to buy or rent a property when the economy is stagnant and they lose their jobs. This drop in housing demand pulls down prices and inhibits new buildings. The same may be said about commercial office space. When enterprises cut back or go out of business, they require less space and may frequently rent the space they have. You may make better investing selections if you grasp the

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