Commercial
Commercial Vs Retail Investment
January 18, 2023
Why should one go for investment in commercial real estate in India? The primary reason is that it offers a steady source of income without any risk. Investors can underwrite their money in commercial office spaces in Bangalore because of the high returns on investment (ROI) it would fetch them. There are assets like bonds, stocks, and mutual funds, however investing in real estate has rewarded steady cash flow, and enjoys various tax benefits.
What is Commercial Investment?
Commercial investment is buying properties in various verticals such as residential,retail,and commercial office spaces. In recent years, there has been significant growth in the commercial real estate sector. Even a volatile financial market will not affect the commercial real estate market. Investors get steady and relatively high returns by investing in commercial real estate.
Commercial real estate holds a greater value than buying residential properties. There are a few things that you need to consider before you invest in Commercial real estate in Bangalore:
- Location
- Budget
- Potential tenants
- Amenities
Pros of Investing in Commercial Real Estate
1. Consistent cash flow
When compared to shares, stocks, and bonds, commercial real estate properties guarantee a steady income over a period of time.
2. Builds substantial equity
As an investor, you can quickly build equity in commercial properties with consistent and relatively high returns.
3. Leveraging substantially
Investors have the choice to purchase with a mortgage or a down payment, which gives a buyer the option to not pay in full, making it beneficial.
4. Secure investment
Buying a commercial property in the most-coveted location in Bangalore will keep you safe from loss of cash inflow. It is a safe and secure type of investment, unlike any other asset investment..
Who is a Retail Investor?
Retail investors are those who deal in smaller amounts and are non-professionals. They buy and sell trades in equity and bond markets. As the retail market in India has been expanding in recent years, assets in this segment have begun gaining traction.
Today, retail investors can choose from these formats, including high street retail, community shopping centres, and retail malls.
Pros of Being a Retail Investor
Retail investors have used the “buy low, sell high” strategy for the last few years. Many investors are becoming wiser when it comes to equity markets.
Smaller investments
Retail investors can invest in smaller companies because they are easier to make. Also, they can choose the number of stocks they want to buy.
The ability to hold cash
When the prices are high retail investors can make a decision to sell out of the market and patiently wait for a better buying price. Thereby improving their potential return on investment.
Liquidity
Retail investors buy and sell shares on a small scale. So, stock prices do not affect their buying or selling actions.
Retail investors have their eyes on monitoring and nurturing investments because they are investing their own money.
Commercial investment Vs Retail investment
A commercial investment is buying commercial office space or part of a business park. In terms of returns, the cash flow from rent is less volatile in commercial property.
Those investors who invest in a mall where the tenant runs a store is referred to as a retail investment. The operational cost of a retail asset is higher than a residential property. The rental cash flow is based on how well the retailer is doing. It becomes more operational and volatile.
Conclusion
Remember, before you jump into any investment, you need to understand the market, trends, purpose, and investment needs. Investing in commercial property may seem lucrative, only because the returns are higher. At Brigade Group, there are many commercial properties for sale in Bangalore. Get ready to invest in commercial real estate with Brigade!
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