Over the last few years, an investment in commercial properties has gained a lot of significance due to attractive returns and increased realty opportunities that act as a major propeller. The pace of both big and small-scale investments has increased due to varied choices. However, it is crucial to explore important factors before buying Commercial property in Gurgaon that could keep legal issues at bay. Several aspects to keep in mind before buying commercial land are as follows:
Reviewing the location is considered the most crucial factor if you plan to buy a commercial land parcel. It should be easily accessible with a perfectly built infrastructure. This is because an investment in the prime location will generate more demand, thereby ensuring higher profits. Moreover, it is important to check that the land is under a clearly demarcated commercial zone. New commercial launches in Gurgaon must avoid lands with uncontrolled development like fences, boundaries, or anything incompatible with the permitted area.
Commercial lands can be used for warehouses, offices, shops, restaurants, and industries. However, the proximity of a business zone to another zone is based on the type of business and vehicular traffic.
- Assess the taxes and returns
Generally, the Rent received from any property owned is taxed under the heading ‘income from house property. This factor works great for commercial property. Thus, you must evaluate the insurance cost and tax to determine the annual profits. This will provide you with a complete idea of how your investment will look in the future.
Taxation of rental income is dependent on either the actual rent received or the rent that can reasonably be expected from such property. Moreover, the income tax laws also allow certain deductions against the rent received while computing the income under the title ‘income from house property.’ Rent received or payable for Commercial property in Gurgaon is deductible at a fixed rate of 30 percent. Remember, the interest deduction is available for money borrowed from banks along with money borrowed from friends and relatives.
- Legal compliances
- Release of Lien – While purchasing commercial land undergoing construction, make sure that it has been ‘Released of Lien’. The term ‘Released of Lien’ suggests that all payments to contractors and suppliers have been settled, and the owner is in complete control of the property.
- Code compliance – The commercial property that you wish to make an investment in must use all the local codes and regulations. You should visit the municipal’s office and get an updated list of the laws that apply to the purchase of commercial land as they change constantly.
- Hold harmless agreement – A hold harmless clause in the sales deed is proven important while buying New commercial launches in Gurgaon. It will protect you from legal and financial complications that may occur during the construction phase of the property.
- Choose a viable model
Commercial real estate fractional ownership is a unique way to acquire Commercial property in Gurgaon, handled through a Special Purpose Vehicle (SPV) that manages funds. The ownership refers to a set-up where investors collect their funds to buy a property. This approach will reduce the financial burden of owning a property for a single investor, and later they earn returns on their investment.
Based on the type of commercial property and tax treatment, fractional ownership models can vary according to Joint ownership, Cooperative model, Company structure, Trust structure, etc.
In India, the construction on commercial land needs to consider the following guidelines:
- The space offered for commercial must be an open hall on a single floor. In case the space offered is on multiple floors, it should have the provision for dedicated entry for movement between different floors.
- It must have a special space for vehicle parking and the buildings offered for office purposes should be complete and ready to use.
- The office premises should be free of all encumbrances and can be accessed easily by public transportation.
- The space should have a special arrangement for public utilities, 24-hour electricity along with a running water supply.
You must gauge the market sentiment and provides the utmost importance to the purchase of Commercial property in Gurgaon. Analyze the similar properties nearby and the price appreciation marked to provide a good deal.
Nobody denies the fact that investing in real estate in Gurgaon is a deal broker. The city has reshaped in the last few years and as the progressive face continues, Gurgaon will offer more opportunities for home buyers and investors. Thus, if you are looking to buy property in Gurgaon, the associates, and agents will help you select the perfect residential property as per your needs.