4 Effective ways to monetize a Commercial Property real estate asset in India with best returns

NOIDA, India - April 7, 2016 - PRLog -- New Delhi: Major cities In India have large chunks of lands owned by NRIs and are struggling to get out best returns from the same. Most of the flats are either lying empty or have been given on rent at comparatively lesser rates. Builders have an account of these ands as getting a new land in metro cities in really difficult in the metro cities. Eventually the owners end up into disputes due to no overall look after and false claims. Converting these lands into residential or commercial property in India is the best way to get out of the situation with better returns.

Different ways in which NRIs can possibly monetize the properties before they get intruded upon are:

1.   Total sale: Investors can make instant money on such lands as outright sale generates instant money. Such lands offer high premium so, this could be a good strategy. One can invest on another land and also the risk of encroachment and extra maintenance of the property is gone. However, this need to be done for good value which takes time.

2.    Joint development agreement: The best way to stay connected to the roots is to enter into a joint agreement with the builder wherein one can keep few unite to themselves. As compared to the total sale, the amount that the investors earn from the whole project is higher in this method. Though it takes several permissions that results in higher opportunity cost, if the builder could get the permission for multiple flats the profits are increased.  http://www.commercialproperty.findaksh.com

3.    Lease rental discounting: Under lease contract, it allows the owners to get instant funds against the rental receipts. Comparatively inexpensive than other modes of finance, LRD is generally at 11-12%.

4.    Commercial leasing: With a rising in interest in the commercial real estate segment, this could be a good way to go as the ownership remains with the owner. Maintenance cost is bore by the lessee but, the property remains with the lessee until the tenure is over. With the number of start- ups coming up this can possibly be the best out of all as people are shifting for residential to commercial property for sale in India.

     With the efficient help of brokers and property advisors one can go in for the mentioned methods with the basic consideration of consulting a tax advisor before. Also, one is supposed to look for the credentials of the builder before any association and ask him for the projects he has dealt in. It is right to go with a JDA in case one holds a land. For total sale or lease agreement in case of owning a commercial property but only, for the correct value. Good ancestral properties are always in demand and attract good value too while giving the benefits to all the stakeholders. It will stabilize the prices and give the required incentive to revive the sector if these empty properties are unlocked and investment is leveraged and all of it will work well for the overall real-estate sector.