Tips for Real Estate Investors: Moving from Residential to Commercial Properties

As a real estate investor in Pune, at some point in time, you will want to venture beyond your regular investment zone and diversify your investment. As they always say, the more diversified your investment portfolio, the lesser risk you are at. Thus, growing wealth with a broad investment portfolio is something every smart investor intends to do! So, while some transition from commercial to residential, some do the other way around.

The focus of our blog is the latter. As an investor, moving from residential to commercial isn’t as straightforward or a breezy affair. It does take that effort to break your comfort bubble, look at options make the right and informed investment choice.

But all in all, the transition will surely be exciting. The first aspect if you look at optimistically, is learning. Commercial real estate investment is more diverse and complex than residential real estate. Thus, you’ll have your share of lessons to learn and have experiences that will enrich your capabilities as a commercial real estate investor. But having these tips handy, the transition could turn a lot smoother.

Conduct a Comprehensive Real Estate Market Research

By saying comprehensive, we mean it. No matter where you invest, you should research the market extensively to ensure you choose an option that yields returns and that does justice to your investments in the long run.

Take, for instance, commercial properties in Pune. Pune is a bustling commercial hub. It has grown from a quintessential city to a cosmopolitan horizon. Thanks to the growth of the manufacturing industry and IT. The city has proliferated in its geographic cover as

well as business opportunities. All said and done, that doesn’t mean you pick any property and expect it to generate returns!

Of course, research applies to residential properties as well. You cannot merely invest in any and every property you come across. But it is relatively easier and quicker to rent a residential property than a commercial one. As, when it comes to residential properties, your tenant wouldn’t calculate his personal returns.

But while investing in a commercial property, you should contemplate of many other parameters for your prospective tenants to evaluate your property. They’ll rent it only if they think the property brings any fruits to their business.

No wonder many commercial properties remain vacant because their investors either did not research while buying them or they are located in places that don’t have business potential. Thus, the key is to research well and make an insight-based decision. You may have a realtor to guide you in your investment journey.

Talk to Experienced Investors

Experienced_Investors 

It doesn’t harm to have an experienced mentor by your side. Look out for people from your friends, family, acquaintances, etc., who have successfully transitioned from residential to commercial real estate. They may help you realize so many aspects that could come as a surprise to you. You’d get help if you asked for it. In this case, ensure you do, as you are investing a huge sum of money!

Know the Documentation Involved

Property investment involves many documents about which you, as an investor, should be careful and cognizant.

In the case of commercial real estate, the documentation includes the sale deed, building approval plan, mother deed, Khata Certificate, and Khata Extract, betterment charges receipt, encumbrance certificate, Power of Attorney (PoA), stamp duty, the latest tax paid receipt and the property’s market value.

You must ensure all the required documents are in place before you sign the documents. Seeking legal assistance can help you ensure compliance and authenticate the documents from the seller’s side.

How To Make a Wise Decision While Buying a Commercial Property?

Buying a Space in Pune 

Some properties might appear promising and could be unreasonably low priced. In situations like these, be rational and know why the property’s price is so unreasonably low. Of course, the same logic applies to residential properties as well. But as mentioned earlier, it is easier to get a residential property occupied, as in the case of homes, and as mentioned earlier, your tenant wouldn’t calculate their share of returns. Thus, while making a commercial property choice, make a coherent and sustainable decision.

Multiply Your Returns With Kohinoor World Towers (KWT) – Commercial Property in PCMC Near Pune

 

Kohinoor World Towers (KWT), Pune 

If you want to transition from residential to commercial real estate, KWT could be the right place to invest! KWT is an under-construction business hub in PCMC near Pune, with top-class amenities, great connectivity, and a location that provides an environment conducive to business growth. In addition, the project has various multi-sized offices to match the unique business needs of varying domains.

Want to know more? Call +91 20 6764 1818 to connect with the sales team.

Related Post - Commercial Real Estate Trends - What to Expect in 2023?

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