Real estate investment is one of the most stable and lucrative forms of financial investment in India. One of the best ways to earn a passive income is by investing in real estate. However, first-time investors are often unsure of whether to invest in residential or commercial real estate, especially in the context of rental income. As a blanket statement, it is safe to say that commercial real estate offers a significantly higher rental yield than its residential counterpart. Having said that, it is important to take into consideration the prevailing market conditions, the location, size and layout of the property, the builder’s reputation and the procurement price of the property before making an investment.
Here’s a quick overview comparing the rental income from residential and commercial real estate.
Overview of investing in residential real estate
Overview of investing in commercial real estate
Rental income comparison between residential and commercial real estate
The rental yield on residential properties is not very attractive when it comes to ready-to-occupy homes in India. However, if an investor is looking at large scale investment made at an early stage, then the rentals could be comparable to those of a commercial property.
On the other hand, commercial property investment in India fetches somewhere between 6-10 per cent rental yield, depending on the quality of construction, location of the property and market conditions. This could translate into something like an annual rental income of Rs. 40 lakhs on a well-located commercial property worth Rs. 4-5 crores.
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My son Tattva had been enrolled in the intermediate level and has been coached by the Vishwanathan Anand Chess Academy coach . Tattva has made remarkable strides and will be on his way to get his FIDE rating in November. A lot of credit goes to the mentor for his unique way of handling his students. He has been very patient while working with Tattva on his areas of improvement. In addition before the tournament the coach had voluntarily added additional classes and doubled his efforts to get a better performance out of Tattva. He has shown complete ownership which is commendable. I hope he continues to develop more and more chess players in the coming days...