Commercial buildings are buildings that are used for commercial purposes, and office buildings, warehouses and retail buildings, convenient stores and shopping malls. When the space allocated to multiple tasks is significant, these buildings are called multi-use. Local authorities generally maintain stringent rules on commercial zoning and have the power to designate any zoning area, such as a business dealer should be at least partially in a commercial area or area.
Investing in Commercial Real Estate
Investments in a commercial real estate can be attractive and serve as a good hedge against stock market volatility, while selling, investors can earn money by appreciating, but most of the returns are generated by the rent collected from the tenants.
In most cases, properties are sold by an office building, a restaurant, a factory etc., however, if a developer wants more capital to expand the project or wants to see returns faster, then the project will break into small units instead of wholesale.
The benefit of Commercial Office
- – Lower operating costs.
- – Higher future capital value
- – Ability to command higher lease rates
- – Higher demand from institutional investors
Taxpayers receipt is mandatory for some of below transactions.
1. Registration of properties in sub registrar’s office.
2. To get certification from city Municipal Corporation.
3. To get the approval of the scheme from a competent authority.
4. To obtain a trade license in the Municipal Corporation authority limits.
By registering real estate transaction, it becomes a permanent public record, title or interest can be acquired only if the deficit is registered.
Unit Area Value System is another variant of the previous Annual Rateable Value (ARV) system, when ARV was based on the expected rent from the property, the Unit Area Value is based on the expected return from the property based on the location and usage of the property.
Because the unit of calculation is based on per square feet on UNIT and for an exact location, street or area are multiplied by a rate value, this method of assessment property is called the “Unit Area Value” method.