Invest In Commercial Real Estate With Guaranteed Returns 

The basic paradigm of investing is that risk and return are directly proportional, and real estate is no exception. The big question on every investor's mind is whether they should invest in commercial real estate for guaranteed returns. In real estate across the world, lucrative offers exist that encourage investors to invest a total of 25 lacs or more and provide returns of around 10-12%. Offers are prepared by real estate developers during the construction or pre-commencement phase. So what are the pros and cons? Let's take a closer look. 

Why builders offer profit guarantees? 

The biggest advantage that construction companies have in delivering projects with guaranteed returns is sales. This is the main factor driving this marketing scheme. If the commercial space is sold during the construction phase, the builder receives significant relief. And as part of  these projects, developers often also set up leasing companies that are subsidiaries of major real estate companies. Leasing companies manage rental agreements entered into with commercial investors. This contributes to the builder's overall income. The developer also minimizes the risk of not renting out the property on time or with the expected return, as the investor's funds are actually  at risk. Another big advantage for them is that they only have to pay  10-12% interest to their investors, compared to the much higher 15-15% interest rates on bank loans. 20%. 

How it helps investors 

Investors often receive real estate for much lower prices than they  expected or could afford. The idea of ​​buying a commercial property in  Delhi (NCR) for around $2.5 million may seem like a joke, but  projects with guaranteed returns often yield similar results. The higher the investment made, the higher the return, which in this case can provide investors with a stable  monthly income stream. Most importantly, this eliminates headaches for investors and puts the onus on the leasing office to find a tenant for  the investor's equity. Final result 

A reliable return bodes well for those who are willing to take risks and have patience as one of their key traits. Investors must have knowledge of the real estate industry  to avoid builders who overcharge for a particular project. Patience is required, as returns usually begin to accrue only after the investment is completed. Returns may also depend on several factors beyond the control of the builder or investor, so some patience may be required.

Article Source: https://boostarticles.com

Join Us: https://boostarticles.com/signup