I want to invest in a comercial property in India.Has anyone any experience or info on this?

http://www.vatikagroup.com/overview.aspx?hid=2&pid=25" target="_blank">http://www.vatikagroup.com/overview.aspx?hid=2&pid=25

They have 2 (commercial) projects at the moment.The one I liked is Vatika Trade Centre.Its on Jaipur-Gurgaon Highway.Details:

1.500 sqft
2.39 Lakhs
3.Will complete in 2014
4.After completion 10 % return
5.Rent I will get is Rs. 35750

This is just the basic info I got from them.

What do you guys think of it?What are things I should check before investing?

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Life is too short for drama & petty things, so Kiss Slowly, Laugh Insanely, Love Truly and Forgive Quickly.

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Vatika as far I know is a trusted name in realty in India ... in Gurgaon area ... last year they had launched Vatika Greens which was a grand success and prices since have appreciated by a good 50% since ....... But this is just cursory info I have -- pray make your own investigations ...

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Fido.

Find out comparative rates of other proprties vis-a-vis the one you are considering..... Eg. Pick any 2-3 different established/older locations where this builder/group has their property..... In each of those areas, find out this builder's rate alongwith the neighbouring buildings/ properties...... It will give you a good idea about the goodwill/reputation of the builder.... A good builder's property will always demand a premium....It will also give you an idea of future appreciation.....

There are two things to consider while buying property..... Location and reputation of the builder..... Besides off course, price....

Hope this helps....

Thanks for that info Fido and Geeta.

I talked to a friend in India and he told me that in such commercial property, they do give you rent but you will not get any appriciation.I don't know how far is it true.I will call them and find out more.

Anymore suggestions are welcome in meantime!

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Life is too short for drama & petty things, so Kiss Slowly, Laugh Insanely, Love Truly and Forgive Quickly.

.......................................................................................

I will give you some basic knowledge that I have....

A very rough estimate in India is that you pay Rs 1000 per lac borrowed ( you can find out exact)..... This will give you the ballpark.....

In my personal opinion, investment in property is for the sole purpose of appreciation.... Also, rent is based on the price of property...... It is usually a percentage..... If there is no appreciation.... Then you need to work on your figures..... Are they binding you in any way with regards to sale??? Eg. Can't sell for so many years etc.????

For residential properties, rent is calculated at around 6% of property value (this is also an approx. Figure).....

Now, calculate the final amount you will pay including interest..... What are the assurances given to you with regards to payment of rent..... What is the annual incremental offered????

Hope the above is useful.....

Rent on commercial properties is much higher ... I ve heard good things about Vatika .... I missed the deal @ Vatika Greens last year .

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Fido.