When you are out to make an investment in the real estate sector the very first decision you need to make is whether you want to buy a commercial space or a residential property. In view of the fact that this choice will affect your investment in terms of use, appreciation as well as future prospects, it is not always easy to weigh the two. Here’s an article that may make things easy for you. You can learn about the difference between the commercial and residential areas, on this website: www.chungculuxuryapartment.com
Commercial Investment in Real Estate
By commercial real estate, we refer to any property that derives its income from non-residential sources. This type of real estate includes office buildings, offices, retail spaces, as well as industrial units. Commercial properties are mainly bought for their rental values. This type of investment may be tricky for someone who is new to the city, as location is the most important factor in buying commercial space. Many developers even design buildings keeping in mind a specific target clientele. So, have a particular consumer market in mind before making the bid. Also, it is wise to invest in commercial hubs of the city, rather than residential areas. A shop space near your home is a passé idea these days. Rather target areas that are already booming with commercial activity. For example, in Mumbai areas such as Bandra Kurla Complex, Worli, Parel, Nariman Point, Powai, Malad, and Fort are ideal investment options. To find out more about the commercial real estate average rate of return, visit this website: https://dailipay.net/
Once you have decided on the area, decide on the square feet area you want. This will depend hugely on the budget you have in mind. Remember that you might need to take up a loan for this investment and the interest rate of the loan may be a bit higher than a personal loan. This is because in many cases the loans taken for investment are defaulted. Hence it may be a good idea to first approach a few banks and see the loan amount you can secure at a decent rate of interest. Keep in mind that this is a business venture and profit is the goal. There is little sense in spending a bomb on interest and the space if there is little appreciation in store or modest rental income. Find a balance that is just right for you and proceed further.
To get more information regarding the strategies used for commercial investment visit this website: https://iamthomasjullien.com/
Residential Properties for Investment
Residential properties in Mumbai or other big cities from around the world are great investment options, especially because they guarantee appreciation in the long run, thanks to the constant inflow of people moving there for better quality of life and career progress. The first and main advantage of buying a residential property is that it poses as a second home in case you ever think of moving base or shifting into the other place. Secondly, most residential properties cost a lot less as compared to commercial spaces having the same square foot area. This means that you are able to buy a bigger space for a lot less. Thirdly, most banks give out personal home loans at competitive interest rates. In all, buying a home is much simpler than buying a commercial space.
While location of the house is an important factor in residential properties, most tenants and buyers concentrate on the locality and infrastructure. This means that no matter what area of the city you choose to invest in, you should make sure that the vicinity has conveniences such as transportations facilities, shopping markets, gardens, educational institutes, gymnasiums, activity centers, etc. Many leading developers make it a point to build projects that offer state of the art amenities within the compound. Some of the better housing complexes include gymnasiums, swimming pool, indoor activity center, landscape garden, etc.
You can learn about the best way to save your money by investing it, on this website: www.estate-link.net