Knowledge Centre
Arethere any larger returns than any other traditional investment options available in the market?
Certainly, this larger than any other tradition investment options currently available in the market.Investing in commercial property can be a viable investment option for several reasons.
Firstly, commercial property offers potentially higher returns than traditional investment options like fixed deposits or government bonds. As mentioned in the example, commercial properties can offer rental yields of up to 24%, which can provide a steady source of passive income for investors. Additionally, commercial properties can appreciate in value over time, providing capital gains to investors when they sell the property.
Secondly, investing in commercial property adds diversification to our portfolio. Commercial property investments are not correlated with the asset classes like debentures, shares and bonds. This reduces our portfolio risk.
Thirdly, investing in commercial property can provide tax benefits to investors. In many countries, investors can claim tax deductions for expenses related to their commercial property investments, such as mortgage interest, property management fees, and repairs and maintenance costs.
Finally, investing in commercial property can give a hedge against inflation. As the property value and rental income increase over time; commercial property investments will safeguard us during the times of high inflation.
Overall, investing in commercial property can be a good choice for investors who wants sustained flow of healthy returns for their investment. It can provide higher returns, diversification benefits, tax benefits and also act as a hedge against the looming inflation. However, kindly consider all factors and consult with a professional financial advisor before making any investment decision.
An accredited investor will gain profit which investing his / her own funds. This smart move has played a significant role in terms of investment.
For example: Asalaried person takes a personal loan of 10 L for 5 years, for which he needs to pay an EMI of 21,500 (approx) / month.
He invested the entire amount of 10 L in commercial real estate for 5 years with 24%(average) rental yield, ie, every month the investor will get the rental income of 20,000.
Technically, theinvestor is paying the rest of his EMI which isjust 1,500 a month from his own pocket for 5 years and which comes around 90,000.
Butthe investor will get back his total 10 lakhs investment. (It simply means we are giving 120% returns in 5 years).
