Pre Leased Property for Sale in Mumbai 5-10cr : Preleased Returns

• Any property that is leased to a tenant to earn fixed rental income is called pre-leased property.

• As the property is leased to a tenant it earns regular monthly returns also you gain from capital appreciation of the property over time.

Types of Pre-leased Properties:

• The figures in bracket are average rental returns produced over time but it all depends on Location, Investment size, Tenant, etc.
• On and above rental return you also get the benefit of capital appreciation+ increment in rent+ Deposit amount+ Loan against rental income.
• You can also avail mix structure of LRD +LAP to raise loan against leased property upto 70% of property value.
• For Benefits of investing in pre-leased properties you can check (Why Preleased)

Reasons to invest in commercial preleased properties

Fixed Income:

• As the commercial property is leased to a reputed company for long term property earns regular monthly fixed income also you gain from capital appreciation of the property over time.
•  You can retain rental income for Personal / Family Fixed income or take advantage of the leverage opportunity by raising 50% loan against rental income.

Leverage:

•  As the property is earning fixed rental income you can use this income to your advantage by raising loan to buy the property.
• You can raise Loan (LRD) against your rental income of around 50% of the property value wherein your monthly rent serves as EMI so you dont have to pay anything from your personal or business income.
• Only 50% Own Investment.
• Bank Loan amount gets fully repaid in 10 years, Property value after 10 years will be wealth creation (as a price trend ROI is usually around 4 times Own Investment).
• For eg: .if you buy Rs 5Cr asset by paying Rs 2.5cr Own investment, Rs 2.5cr Loan against rent, assuming 8% appreciation in property value due to increment in rent over tenure, property value will be around 10 Cr (4 times Own Investment).
• More Importantly Incremental Rental income after 10 years will be in hand as loan is fully repaid you can use this incremental rental income for personal use or to buy new asset by further leveraging.
• It is least risky real estate asset as property is ready with necessary permissions, also if the property is leased to reputed tenant they do strong due diligence of the property before leasing so you have double assurance of the property in terms of Legality, Title, demand of the location.

Things to look while buying preleased properties:

1. Location.
2. Infrastructure developments (Present and future).
3. Project quality, Amenities, Floor plans.
4. Tenant profile.
5. Rentals & other terms of licensing.
6. ROI (Rental + Capital appreciation + Increment in rent).
7. Agreement copy of L&L.
8. Sale Agreement among others.