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5 Things You Should Know About Commercial Property Ownership

Commercial property ownership is not an easy thing as it involves a lot of money. If you see someone who owns a commercial complex, you call them a millionaire.

You know why?

Deep down, you know that he owns something that generates a huge revenue every single month. If he is gonna sell, he will get crores of money for sure.

Commercial property is something that’s not going to depreciate. Day by day, the property value is going to increase. There are so many benefits of owning a commercial property.

All these benefits come to the ones who are willing to invest a huge amount. Either you can buy a complex or build a complex, it’s up to you.

1. Type of Commercial Property matters more than anything

The type of commercial property you are planning to own is the key here. Each type has its own pros and cons.

  • Business centre
  • Shopping Mall
  • Hotels & Restaurant
  • Banks
  • Medical centre
  • Retail stores, etc.

The list goes on. You have to choose the one that you are confident about. You have to alter the property as per the type of commercial building.
If you are planning to construct a building in your commercial land, then plan accordingly.

Every business has some guidelines. Hospitals are subjected to be built in a particular place following the guidelines. If you are planning to buy a commercial property, then you have to verify each and everything.

Proper planning and execution will save you time and money.

2. Renting or Buying a Commercial Property

This is the puzzling question people ask realtors. Should I buy or rent a commercial space? The question is simple. But answering that question is not easy.

Your business type answers this question. If you are applying for a loan requesting a huge amount, then go with a rental. Because bank interests are very high.

If you are planning to buy a commercial property and rent it for a monthly income, then analyze the market properly. Just consult a realtor to get as many details as possible.

If you ask me personally, I would prefer buying commercial land and build something as per my plan.

3. Right Location = 50% Success

In commercial real estate, location decides your success. If it is located in a prime location with the right audience, then nobody can stop you. Money will shower like anything.

Let’s say you are going to run a hotel business, what would you prefer; a main road or some street for which you have to take 10 turns.

Prime location with good road connectivity is a jackpot. These locations have good foot traffic and easy access. Know your customer better. Think like a customer and decide your location.

Competition is another big thing that can destroy your business even if you are in the heart of the city.

4. Right Financing Option will save your money

This is the part where so many people get stuck. They have a great idea of starting a business. Even they would have finalised the commercial property they are gonna build or buy, but they struggle at the focal point.

You need to choose the right financing option. You can go for a loan, but interest rates are very high. You can also try a joint venture where you share the profit.

Always go for low-interest route because the commercial property investment involves a huge sum of money. The best way is 50 50 rule. Invest 50% and borrow 50%. This is the ideal strategy.

5. Research Now Rewards Later

If you do proper research about the commercial real estate property, then you will surely stay one step ahead. So many people step into commercial real estate without knowing what it is. Eventually, they face loss as a result.

To avoid this, you have to know more about the property. A realtor can help you get the necessary information about the property beforehand. You can also go to the field and gather as many details as possible.

Inspection is also extremely important. You have to check the pipeline, wiring, etc. to ensure that everything is in line with your expectations and guidelines. Just have a chat with neighbours to know more about the property, the surrounding area and other important stuff.

Conclusion

I agree with the fact that commercial real estate is lucrative. If you make every move with meticulous care, then you are going to be successful for sure. Property location is key to everything. It will influence each and every activity of your business.

To make key decisions, get assistance from realtors and legal experts. They will surely guide you on the right path. You can also buy commercial land from Pahani who have extensive experience in the field of commercial real estate. You can also sell your land using this portal.

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5 Monetary Benefits That Compel You To Buy Agricultural Land

buy agricultural land and get more benefits

Monetary benefits will surely encourage you to buy agricultural land. Agriculture is vast but if you know how it works, then you can make a huge amount of money in a short period of time.

Even if you are leasing your land to a farmer, you should be aware of what he is doing. To improve efficiency, you have to give inputs to him. For that, you should definitely know farming techniques. Organic agriculture is proven to be successful.

The tax benefits you get from agriculture are attractive and beneficial. Land leasing, financing and flipping are some of the best practices you can follow and be successful.

In this blog post, we are going to discuss the key monetary benefits of buying agriculture land.

1. You can do Farming and Earn money

do farming and earn money buy agricultural land

There is a reason why this point is at the top. The best way to make money from agriculture property is to do Agriculture. You have to cultivate, process, and export.

Is it possible to do farming without sufficient knowledge?

This is the first question that pops up when I said “Do Agriculture”. Agriculture is not easy and quick. It takes time. You have to learn the basics and techniques of farming and implement it properly.

You can’t do farming just because you have organic agriculture land and money to run the business. Learn, Implement, Excel. That’s the key for running agriculture as a successful business

2. Tax benefits of Buying Agricultural Land

Tax benefits gained from buying and selling agricultural land is enormous. Let’s say you buy agricultural land in Telangana at X price. This won’t be considered as a capital asset. So that means, you need not pay income tax for any revenue you generate from that piece of land.

You need to meet the clause in Section 54B in order to get tax exemption from Capital Gains. In rural areas, you need not pay capital gains tax for agricultural land. But in urban areas, you need to pay tax ranging from 20-30%.

You can also get a waiver for crops, subsidies, loans, and more benefits from agriculture. Agriculture land laws vary from state to state. So you need to understand the laws and how it works in your state.

For example, you need not be a farmer to buy agriculture land in Telangana. On the contrary, you have to be a farmer in Karnataka to own agricultural land.

3. Sale of Agricultural land at a higher price

Sale of Agricultural land at a higher price

Buy agricultural land at a low price and sell it at a higher price. Sounds easy, right? Actually, it’s not as easy as it sounds. You need to analyse a property before buying it. If you buy land at a low price with good development potential, then all you need to do is wait.

Wait for the right time and demand. You get the opportunity to fix the price as you wish. That’s the magic of buying a good agricultural property.

What do I mean by good agricultural property?

  • Located in a place which is transport-friendly and climate-friendly.
  • The land should have good development potential.
  • The land should be free of legal issues.
  • Water, this is the most important thing in agriculture. An abundant water source should be available near the land.

4. Financing for Agricultural Land

Assurance is the key to investment. That’s what you get when you lend money to someone who is going to buy agriculture land. Let’s say you are going to give X amount of money to Ranveer. He is going to buy agriculture land using that money.

Things you get in return:

  1. You get interest for the money lent on a monthly basis.
  2. There is no way you are going to lose money. Even if he doesn’t pay the EMI properly, you can seize the land and make it yours.

Interest and Guarantee, what else do you need?

Also, there is another way you can earn money. To run the agriculture business, farmers and landowners need capital. You can lend money to them and get interest on a monthly basis.

5. Agricultural Land Leasing

Agricultural Land Leasing

Leasing of agriculture land works as per state laws. In some states, you can lease your farmland but you can’t lease in other states. Instead of you doing all the farming activities, you can lease your land to someone who is an expert in farming.

The agreement depends on the owner, lessee and state laws. Some owners prefer profit-sharing, some prefer to rent and it completely depends on the mutual agreement.

Conclusion

If you have a basic knowledge of farming, it will be really helpful to run agriculture as a business. Also, be aware of laws pertaining to agriculture land, leasing, etc. Tax benefits are extremely important because they reduce your financial burden to a great extent.

If you are struggling to proceed further, I would suggest you consult agencies who have vast experience in agriculture. They can guide you and make you successful.

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