By Soniya Gaonkar on Apr 1, 2022 7:34:48 PM
Risk is an integral part of everyone’s life. Someone who doesn’t take a risk is probably at a bigger risk. Commercial real estate investment is something that genuinely resonates with the philosophy of risks. Yes. It undoubtedly involves some amount of risk to buy a commercial property. However, not investing in one is perhaps a bigger risk, as you’d lose so many remunerative earning opportunities!
Often, many abstain from investing in commercial real estate, as they consider it risky. But then, the right research and an informed decision can help mitigate the risk and pave the way to better returns. That’s precisely what we’ll discuss here. How to reduce risks in buying commercial real estate in Pune?
4 Things to Consider While Buying a Commercial Property in Pune
From researching the property to ensuring proper documentation, these four things can help you reduce the risk concerning the purchase of commercial properties in Pune.
1. Research Extensively About the Property
Not every commercial property is as potentially lucrative as it may appear. Before handing over the paycheck, you must research extensively about the property. Some of the key factors include the property’s location, the area of the office or shop (from the rental perspective), the type of prospects around, the degree of future development, accessibility, internet connectivity, availability of water, the type of businesses likely to approach, the return from investment, the developer’s credibility, etc.
2. Seek Legal Assistance from an Attorney
Buying a commercial property involves several legal intricacies. Besides, it is good to have a lawyer assess the property from the legal aspect and have him discuss discrepancies, questions, etc., with the developer on your behalf. Since you wouldn’t necessarily be a legal and a real estate professional, let experts handle the task for you. Hiring experts to do a particular job always reduces the risk considerably. Buying a commercial property isn’t an exception to it!
3. Speak to the Developer About Assured Returns
At the outset, let’s understand what an assured return is. As the name implies, developers offer to assure returns for under-construction properties. It involves signing a formal agreement between the buyer and the seller. The seller is undertaken, under which the property seller commits to pay the buyer an assured sum every month till the property is ready and the possession formalities for it are completed.
Assured returns are offered on already built spaces as well. In situations like these, the seller finds a tenant and commits to a fixed rental income for the buyer. However, you must enter a formal agreement for the mutually agreed rent amount, which is a particular percentage of the property’s total worth. Nevertheless, you must have your realtor (if you’ve appointed one) and lawyer while negotiating and signing the deal.
4. Hire a Realtor to Ensure Proper Documentation
Buying a commercial property involves a plethora of documentation and a lot of document verification. Hiring a realtor can help you complete the documentation and administrative formalities seamlessly and accurately. Realtors are experts, aware of, and updated about every aspect related to compliance. They can help you ensure a compliant purchase to avoid any potential challenges or problems later.
Buy a Promising Commercial Property in Pune at Kohinoor World Towers (KWT)
For everyone looking to invest in a commercial project in Pune, KWT is an under-construction business center situated in the prime business hub of PCMC. The project brings a host of potential business opportunities and features multiple commercial skyscrapers, many latest amenities, intelligent offices, integrated commercial spaces, etc., to make it a comprehensive commercial landmark of Pune and PCMC.
As one of the leading real estate companies in India, Kohinoor provides end-to-end assistance to its prospects, answers all their questions, and completes formalities involved in buying and selling commercial property. To know more or to connect with KWT’s sales team, call +91-020-6764 1818.