There is a trend of owning properties. Are you looking forward to investing in property? What have you decided on the type of property you would choose? Are you going to have pre-rented one or what? Ah, come on, you cannot say that you don’t know what pre-rented space is.
For your information, pre-rented or pre-leased commercial properties is property or possession that has already been rented out to a retail brand/ firm/bank and is on sale presently. As the name says it all, it is already leased to an inhabitant at the time of sale and is producing a secure income. These are the kinds of properties that are sold at their rental yields. Rental Profit is basically the regular return that is achieved on investment that too without seeing the predictable capital loss or gain from a sale. Usually, the investment amount may begin somewhere at Rs 50 Lacs and can even shoot up to Rs 100 Crore or advanced. You must think about such properties at least for once. You can look for options like Pre rented property in Gurgaon or so on.
Impressive benefits of pre-rented property
There are some impressive benefits of the pre-leased or pre-rented property. Have a walk below:
Assured returned since the beginning
Generally, individuals purchase properties and rent the space out later on. It means that the buyer has to look for the occupant himself and has to be patient for the return, after buying, till the time the property basically gets rented out. However, in the scenario of pre-leased commercial property, returns are sure right from day 1. It simply means there is a no waiting time for Return on the Investment (ROI). What else can you expect in this 21st century?
Fixed monthly returns
Since such types of properties are already occupied by tenants at the time of buying, a lease contract is pro-actively signed, safety deposit collected, and there is lock-in period defined. As an outcome of this, a monthly return gets secure and assured. It is indeed a great investment.
Tax savior
The rental fetched by the purchaser is taxable. However, a thirty percent standard reduction is always allowed for maintenance and repairs, regardless of the actual amount used. It simply means that you get to save the tax on thirty percent of the amount and you have to pay tax just for seventy percent of the rent income attained.
Rent Growth and Lock in time
Rent progress is pre-defined in the concept of a lease. Rent appreciation is usually fifteen percent after every three years, generally in a nine-year lease. Speaking of lock-in time, it is defined in the lease agreement. Lock-in period is the least time frame where the inhabitant cannot empty the property. The lock-in time usually is three years for a lease of 9 years.
Conclusion
Thus, whether you are going through the options like pre-leased property to banks in Gurgaon or pre-rented commercial space in your area; it is a good concept for anyone. You must try it out!
