Investing in Preleased properties, especially in areas such as Rajkot, Morbi, Jamnagar, Bhavnagar, Porbandar, junagadh, Amreli, Devbhumi Dwarka, Botad, Surendranagar and the peripheral regions of Saurashtra’s, Gujrat, is an attractive proposition for serial investors. It has several benefits attached to it.
To begin with, Preleased properties provide a settled return on investment (ROI) as compared to other investment options such as bonds and fixed deposits. However, the rate of capital appreciation over a given period of time depends on the location of the project and the development taking place in the vicinity. On the basis of these factors and long-term viability of the project, returns can vary between nine percent and 12 percent.
The buyer of a Preleased property is guaranteed of a settled return on Investment (ROI) from the start. The property investors earn a pre-settled rental income besides the Capital appreciation on the property that is purchased.
There are multiple benefits for purchasing a Preleased property. Like “zero waiting” for the Very Handsome ROI to start, further the capital appreciation over a time period depends on the location of the project and development projects that take place in the surrounding area.
Top 5 Reason For Investing in a Preleased Property
here are many reasons for investors’ new preferences, some of which we will be explaining below!
1) Instant return on investment
While you are not only provided with the property you will be investing in, you also already have tenants.
This cuts down the whole process of hunting for tenants to begin generating revenue- you will earn from the day that the property is yours.
As preleased properties are very promising in nature, an interested customer can avail up to 90%-100% of the entire price as loan.
This is a tool that enables buyers to invest in property with the highest returns.
Apart from the promising rental income, a pre leased property may promise you an appreciating value with time.
Location of your property is key over here- if your property is located at a busy, or potentially busy place, then it is more likely to give great return on investment with time!
4)Increasing Income with Rent
According to the existing rental agreement you can estimate the increase in rental revenue generated from a commercial pre leased property.
If some tenants choose to vacate the property after a certain period of time, you can still be assured that the next tenant will start from the current market price, thereby leaving the revenue generated unaffected.
A commercial pre leased property offers low to medium risk.
The stability described in the above points make pre leased property a safe option to invest in, with assured returns.
A commercial pre leased property can assure you 6-12% returns whereas a residentially pre leased property gives upto 3% returns.
In big cities like Rajkot and Saurashtra’s, pre rented office spaces are also a form of pre leased property! They provide a diverse portfolio to the owner as the same property could be used for commercial purposes- shops, and also to create an office!
It is the stability of pre leased property that has made it attractive in the past few years! In current market scenarios, it is a wise investment decision and the return on investment makes it a wonderful choice!
These were the Top 5 reasons for investing in a pre leased property. If you have any other questions or are looking to invest in preleased property, contact our experienced and professional Manager at Mitra Business Solution Provider and let us guide you through making an informed investment decision.