How to invest in Commercial Properties: expected return, REITS and other details.

TL;DR

This video provides a quick tour of a commercial property and discusses the viability of investing in commercial real estate in India. It emphasizes the benefits of diversification and explores fractional investing through REITs and platforms like Strata.

Transcript

and here is me giving you a very quick tour of one of my commercial properties hi everyone welcome to today's video so today's video is super special for me because my dad is very excited about my this video he keeps on asking me when is your real estate video coming up i would love to watch it so here it is today i'm going to talk about the real e... Read More

Key Insights

• 🔃 Diversification through commercial real estate can be a wise investment strategy.
• 🏙️ Commercial properties in tier 2 cities in India generally offer better rental yields than residential properties.
• 💄 The inflation of residential property prices in India makes commercial real estate a more viable investment option.
• 🌥️ Challenges in commercial real estate investment include scouting properties, purchasing from builders, and the need for a large upfront investment.
• 🔬 Fractional investing through REITs and platforms like Strata provides a more accessible and flexible way to invest in commercial real estate.
• 👨‍💼 Renting out commercial properties to businesses results in a constant return on investment analysis and prevents artificial property price inflation.
• ❓ Investors should conduct due diligence and ensure that REITs and platforms like Strata are regulated and certified.

Questions & Answers

Q: How did the speaker decide on investing in commercial real estate instead of residential properties?

The speaker believes in diversification and views commercial real estate as a better investment option due to higher rental yields and lower inflation rates compared to residential properties in India. It also aligns with their expertise and investment strategy.

Q: What are the challenges of procuring a commercial property?

The speaker highlights three main challenges: scouting for good properties amid tough competition, navigating the cumbersome process of purchasing directly from builders, and the need for substantial upfront investment.

Q: What are the benefits of fractional investing in commercial real estate?

Fractional investing through REITs and platforms like Strata allows investors to own a portion of income-generating commercial properties without the need for large upfront investments. It provides diversification and access to commercial real estate opportunities that may otherwise be difficult to attain.

Q: How do commercial properties in tier 2 cities compare to those in tier 1 cities in terms of rental yields?

Tier 2 cities in India often offer better rental yields compared to tier 1 cities, making them attractive for commercial real estate investment. The lower property prices in these locations contribute to higher returns on investment.

Key Insights:

• Diversification through commercial real estate can be a wise investment strategy.
• Commercial properties in tier 2 cities in India generally offer better rental yields than residential properties.
• The inflation of residential property prices in India makes commercial real estate a more viable investment option.
• Challenges in commercial real estate investment include scouting properties, purchasing from builders, and the need for a large upfront investment.
• Fractional investing through REITs and platforms like Strata provides a more accessible and flexible way to invest in commercial real estate.
• Renting out commercial properties to businesses results in a constant return on investment analysis and prevents artificial property price inflation.
• Investors should conduct due diligence and ensure that REITs and platforms like Strata are regulated and certified.
• It is important to maintain a well-diversified investment portfolio, including real estate, stocks, and cryptocurrencies.

Summary & Key Takeaways

• The video offers a tour of a commercial property owned by the speaker and highlights the purchase price and rental returns obtained from it.

• It explores the advantages of investing in commercial properties in tier 2 cities in India, as they often offer better rental yields compared to properties in tier 1 cities.

• The speaker explains the rationale behind investing in commercial real estate as a diversification strategy and contrasts it with the concept of purchasing a house.

• Challenges associated with procuring commercial properties, such as scouting and the need for lump sum investments, are addressed.

• The video discusses fractional investing options like REITs and platforms like Strata as alternatives to outright purchasing commercial properties.