Commercial Real Estate: The Ultimate Investment Asset for Highest Passive Income

The pandemic taught us many important lessons, but most of all, it reminded us of the importance of having multiple income sources, especially a large corpus of regular passive earnings to keep us afloat in case of emergencies.

Share on facebook
Share on twitter
Share on linkedin
Commercial Real Estate: The Ultimate Investment Asset for Highest Passive Income

Talk to any avid investor or investment expert, they will emphasize the importance of having multiple passive income sources. This is so because relying solely on your 9-5 job to pay your bills and live a comfortable life can be very difficult in today’s time, not just that, you might not even have a lot saved up for your retirement or an unpredictable economic shutdown like the pandemic.

Importance of a Passive Income

A good regular passive income ensures financial stability and security; it also gives you a sense of freedom, so you don’t have to think twice before spending money in most cases. And since it is not dependent on how many hours you spend working, the passive income also helps share financial burdens and reduce stress in your life. 

Real estate is one of the best sources of passive income. Here’s how you can take advantage of this investment asset.  

Commercial Real Estate for Passive Income in India

Commercial Real Estate means purchasing, or investing in commercial properties such as apartment buildings, hotels, vacation homes, resorts, and office spaces to earn high rents or income.  

Benefits of Investing in CRE

In the pandemic, we saw the stocks fall, share markets crash and funds go under losses, although the real estate sector did suffer, it was also one of the earliest to bounce back. 

This was so because commercial spaces are usually leased for longer durations, and as long as the property is occupied by a company, they are bound to pay rent. 

Not just that, during the pandemic, many MNCs also started to shift their bases from China to India, as more and more MNCs keep coming in, we are expected to see a greater boom in the market making it a great and safe investment. 

  • Asset appreciation 

One of the biggest upsides of investing in any form of real estate, especially CRE is that they form a hedge against inflation. Since land is limited and our demands unlimited, the price of a real estate property cannot fall.

  • High Returns

Most investors are looking for a low-risk high-return investment option at all times. While both risk and returns go hand in hand, CRE has proven itself to be a safer and high returning investment option. If you approach CRE investments through Assetmonk, you can also enjoy an annual IRR of up to 21%.

  • Long-term goals

As CRE properties are leased to businesses or MNCs for over ten years, these are perfect long-term investments.

  • Dual income

A CRE investment earns via property income, profits from ownership of capital, rent via ownership, and the capital also grows via asset appreciation. 

Fractional Ownership CRE 

Commercial real estate properties are usually worth hundreds of crores, making them inaccessible to middle-class investors. But as technological advances take over the real estate world, novel investment ideas such as Fractional ownership and Crowdfunding come in to democratize the investment system. 

Fractional ownership in CRE is an investment system where many individual investors come together to pool their capital and purchase a real estate property. Here the investors become owners of the fraction of property based on their investments and the burden of investment; risks, as well as returns, are shared amongst all investors. 

Since in fractional ownership you can invest an amount as little as Rs. 25 lakh, this makes the investment very cost-efficient, also the investment offers dual returns, firstly, the returns that you earn directly from the investment, and secondly the benefits of asset appreciation. As you are part owner of the real estate property, as the property appreciates, the price of your share will also rise. 

Assetmonk, the smart WealthTech platform simplifies the CRE market for you. The company offers high-end A-Grade investment deals to its investors in the forms of fractional ownership and crowdfunding.

Conclusion

Fractional ownership in commercial real estate is gradually gaining popularity as one of the mainstream investments. It has already started setting roots in metropolitans such as Chennai, Bangalore, and Hyderabad, the IT bases of India. As more and more MNCs move to the Indian market, fractional investors will have many new investment options opening up for them. Visit the Assetmonk website to stay updated. 

Passive Income Through Commercial Real Estate Investment FAQ'S

Yes, as commercial real estate properties usually generate high returns, they can make ideal sources of regular and passive income.

A passive income in real estate is generally the money you make from investing in real estate on the side, that means besides your regular job when you also earn money from CRE it is counted in passive income.

When you invest in a CRE property, usually the profit it makes by either collecting rents or building retail shops, etc counts as passive income on real estate.

Related Articles

istockphoto 155700839 612x612 1

Rental housing demand will increase in crucial micro markets

The real estate market has exploded in the post-pandemic era. The corporate market is increasing, increasing demand for commercial space and rental residences. According to industry statistics, in the second quarter of this year, Indian rental home searches climbed 84.4% year on year and 29.4% sequentially. Furthermore, total combined rental housing listings rose 3% quarter on quarter and 28.1% year on year throughout the 13 Indian cities covered. Do not miss The 18% GST on rent gets anticipated to harm the rental housing industry. But, what are the variables that will lead to the rental housing demand boom? Accessibility and cost-effectiveness: When it comes to renting a property, people primarily examine three factors: infrastructure, connection, and price. The property’s location, with ready infrastructure and decent connection, takes precedence over the size and price of the unit. Customers want a home in a prominent location that allows them to maintain a good work-life balance, with less commuting time, easier access to…

Read more
istockphoto 1393356971 612x612 1

REITs, New Age Instrument: Investing in Properties Without Actually Investing in One

Real estate investing always meant purchasing, owning, and managing an actual property. But, did you know that it can still be done without actually owning the property? Thanks to REITs, investors need only put their money into corporations that possess substantial portfolios of self-appreciating real estate assets in some of the world’s most desired locales. Welcome to the world of REITs where you can buy real estate without the inconvenience of owning the property altogether. Easy peasy lemon squeezy right? Real estate investment trusts are popular among investors who wish to buy real estate without the inconvenience of owning the property altogether. These investments, known as REITs, allow investors to deposit money into income-producing real estate. A REIT is best described as a simple way to own real estate without actually purchasing any property. Investors can acquire individual shares of a real estate investment trust, similar to stocks, which gives them little chunks of several properties. This protects them from…

Read more
istockphoto 1394977436 612x612 1

Commercial Real Estate Leases: Different Types and Which Is the Best?

Leasing commercial space is a significant financial commitment and requires commercial real estate leases. These leases can be intimidating, especially because they are a huge commitment that can be costly. However, they are not as difficult as many people believe. A commercial real estate lease, like most other legal transactions, should not be taken lightly. As a result, when renting commercial space for the first time, it is critical not only to thoroughly study the industry but also to have a good understanding of the many forms of commercial leases accessible in India. Also, read Commercial Real Estate Is Booming In 2022: Explore How You Can Also Profit Via This Alternative Investment. Here’s an explanation of the many forms of commercial real estate leases and what they imply for renters and landlords: Firstly, what are commercial real estate leases? Commercial leases, as opposed to residential leases, are an arrangement between a renter (company) and landlord that specifies the property only…

Read more
istockphoto 817688664 612x612 1

The Indian real estate market would be worth $1 billion by 2030: RBSA Advisors

According to RBSA Advisors, the real estate business gets expected to grow by 15% by 2030, reaching $1,000 billion. According to RBSA Advisors, the Indian real estate sector would grow at a 15% CAGR from $60 billion in 2010 to $1,000 billion by 2030, contributing 13% of the country’s GDP by 2025. The organized retail real estate industry get expected to rise by 28% to 82 million square feet by 2023. Per “The Outlook of the Real Estate Sector in India,” the Indian real estate sector is showing strong indications of recovery as the economy recovers from the pandemic. Also, read JLL reports Indian real estate garnered $943 million in investments worth in Q1 2022. Despite a little increase in prices and a slight increase in home loan interest rates, the real estate industry has thrived on good buyer enthusiasm. According to the poll, there is substantial demand for property in Delhi-NCR across all price levels. The entire increase in…

Read more
istockphoto 1394786542 612x612 1

Aspire to be A Top Commercial Real Estate Agent? Here are Some Critical Steps To Becoming One

Do you want to be a successful commercial real estate agent? The Indian real estate market is diversified but vibrant and competitive, particularly for commercial real estate agents. To build a successful niche, they must comprehend the shifting promotional circumstances of developers as well as customer preferences. Staying current and afloat in the market requires innovation and openness to new marketing concepts. Follow the steps below to be a top agent. Do you want to be a successful commercial real estate agent? If this is the case, the first question you must answer is whether you want to work in commercial or residential real estate. To be sure, because individuals are more likely to buy or lease a place to live rather than a location to operate a company, it is simpler to get into residential real estate – where there will always be more prospective clients and transactions. Commercial real estate, on the other hand, may attract a large…

Read more
istockphoto 1263914795 612x612 1

Real Estate Investments: The Hottest Alternative Investments You Do Not Want To Miss Out

One of the best ways to grow your money in the modern era is by making investments. Whether small or large, every investment has got the potential to be a profitable one. It wasn’t long ago that people only knew about the stock market as a primary investment method. But, this has changed pretty much with the arrival of better technologies for making investments and making profits out of them. The hottest topic in the domain of investments is the growing popularity of alternative investments such as real estate. The real estate industry has been in existence for a long time, but it has changed a lot from its original form. Better alternative investments are emerging in real estate, mostly due to innovations introduced by technical firms. There’s still much to learn about this, so don’t worry. We have explained everything about this trending topic in this blog post. Do not miss Aspire financial freedom. Find Out How Real Estate Investment…

Read more