Have you ever thought about investing in real estate? Well, most of us do because real estate ensures a steady and good income. If you have a house and you are earning well you may have thought of buying a property and renting it out and getting a good ROI out of it. If you are interested in investing in property, you would be pleased to know the pre leased property meaning. Let me share with you what pre leased property means.
Check out the commercial properties on NoBroker that can yield good ROI.What is pre leased property?
Pre leased properties or pre rented properties are the types of properties that have been leased out to a Lessee or Tenant for a particular period of time on the basis of specific lease term which in turn provides a fixed Return On Investment (ROI).
Properties which are under terms include Banks, ATM, Commercial Office space, and Retail shops. They provide a fixed Rental income with an escalation clause of rentals and have the following returns:
Banks / ATM: - Provide ROI of 4.5% to 6% per annum.
Retails Shops: - Provide ROI of 4.5% to 6% per annum.
Commercial Offices: - Provide ROI of 5% to 8% per annum.
Although residential flats provide a good ROI it is not as much as commercial pre-leased properties.
Since some properties assure us a ‘zero’ waiting period for Return on Investment (ROI) and these properties provide good returns with capital appreciation over the time span it is known as pre-leased or pre-rented properties.
Some of the parameters we can follow to buy a pre-leased property are:
Location
Quality and Age of Building
The Brand value of the Lessee or the Tenant
The terms of leasing out or renting (9 years lease to 25 Years lease with Escalation of rentals from 10% to 25%).
Read more:
What is lease under transfer of property act? What is lease agreement? What is lease Deed?
What is pre leased property?
Bharat
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2022-11-07T09:11:51+00:00 2022-11-07T09:11:53+00:00Comment
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