Pre-leased real estate is any property that is already generating rental income. The purchaser will receive rental income for the very first day of procuring it.
Usually, Pre-leased properties include shops, offices, agricultural lands & farmhouses. It is not a common practice to buy affordable housing pre-leased.
Let us understand the common factors to consider while buying Pre-leased real estate:
Title of the Property
Always check the title of the property. Irrespective of whether leased or not, one should know the ownership details before investing. Only if the ownership is clear one should proceed further.
Approved by Authority
The property should have the approval of the concerned authority. This diminishes the risk of government action against illegal properties. In case the property is RERA registered one can skip this point.
Tax & Bills
All prevailing taxes & bills should be fully paid. Some of the taxes are property tax, electricity bill & society maintenance. The original lessor & less must have cleared the stamp duty, registration & government charges.
Lease Terms
One should check the lease terms are standard & favorable to the buyer. It should not contain any clause against the new buyer.
Right to Sell & Transfer
As per the lease terms, the owner should have the right to sell & transfer the lease rights. Also, the lease should agree to pay the rent to the new buyer.
Income Tax
The new buyer should understand the income tax implications on him of buying the property.
ROI
Now the most important thing is the return on investment calculation. One must always understand what returns one will get on investing in the property. This expectation varies from person to person.
Real Estate Consultant
It is highly recommended to hire the best real estate consultant to ease the transaction. They are the best professionals available in the market who can guide you with insights into the deal.
These are the most important points one must consider while buying pre-leased real estate. There are various other factors too but they depend on the type of investor & the property.
In case you are planning to buy a pre-leased real esate you can always reach us at info@mevolvee .in
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So, in case you are considering buying a property, meet a real estate consultant today.
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