Pits You Need to Cover Before Leading to Invest in Indian Commercial Real Estate

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You must have read a lot of articles and blogs about the upside of investing in the Indian

commercial real estate. Well, it is very true. Whatever they say or are inclining towards are of

significant value and importance, but everything has a positive as well as a negative side

attached to it. They are like the opposite sides of the same coin and if you can understand the

negatives of something it is easier to turn them to your advantage. Owing to the last

statement I made, let us discuss the downside of your investment in Indian commercial real

estate and if you can find a way past them then the grass is greener for you.

Time: Well, this is a massive constraint. It is a well established fact that commercial

properties provide you with a consistent income for an extended period of time but you must

be well aware that there are a lot of rules in the Indian constitution that safeguard the

interest of a tenant.

So not only you have to find a way to comply with the rules and regulation, but also have to

spend a huge time in order to manage your accounts properly. Even if you rent out or even

lease out your property to; lets say 5 different individuals, then you need to make sure that all

of them pay their dues on time along with dealing with many other issues like CAM,

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maintenance and safety concerns. All of this is mandatory under government policies and it is

very time consuming.

Initial Amount: It is no mystery that you have to make a high initial investment, if you are

planning to be a player of Commercial real estate. To acquire a commercial property you

need to shell out big bucks from your pocket. And unless your bank statement and credit

history supports your business plan, it will be very difficult for you to get the loan approved

from any financial institution. Also, most of the commercial pundits recommend to invest

when the property is still in its budding stage, so you have to wait for a year or two until your

investment starts to pay off. Till then you have to deal with the interests along with the

associated risks of investments.

So, until you can spare a few hundred thousand dollars or similar amount in any other

currency, for a few years then an investment in the commercial real estate is not an ideal bet

for you. However, if you can then you will find your investment will be giving you a lot more

than you can imagine.

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For More Information Visit:

● KRasa International Pvt. Ltd.

Plot No 1, Sec 140, Noida Expressway

Uttar Pradesh-201304

India

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