The Core by Suninder Sandha the Director of Core Mall plans Differently in its design, liveliness, reach and topicality.

He is a very unique blend of a top result achiever and an excellent marketing strategist. His penchant for innovative marketing has made Concept Capital a household name and its products what customers now aspire to own.

He received the award for “The World’s Greatest Leaders –Asia & GCC -2015-Process Reviewer PriceWaterHouse Coopers” in December 2015.

Alternate Income – need of the hour

At some stage in our life we all start getting excited about generating alternative source of income. But that enthusiasm is soon lost among the hustle and bustle of everyday life. Our daily life is so cramped for time that, after we return back from office, we have virtually no time left to think about alternative income. But it’s need of the hour now. The rising prices, high school/college fees of kids and the want to maintain a good lifestyle are reasons enough to consider a steady flow of alternate income seriously. And in India, real estate continues to be one safe haven for investment. There is not only potential high returns but also the associated pride of ownership which makes real estate an integral part of one’s investment portfolio.

The question is if one should be investing in a retail shop instead of residential property? If the purpose of buying a property is investment/alternate income, then capital appreciation is important as well. At this stage, absorption of commercial space has improved; a trend that’s likely to continue and rental yield is higher. A commercial property could be a small shop in a neighbourhood, housing complex or a mall, a small office space or a joint investment in a bigger office space. Each of these should be looked at from different perspectives—investment amount, tenant profile, returns, exit options and associated risk. Retails Shops can be an entry point for a new investor especially in a high street area, mall or mixed-use development. Returns can be 9-10% per annum, or even 12-13% if the shop is in a good location. Shops can be let out to be used as ATMs, retail outlets or to professionals such as chartered accountants and doctors.

The investment amount will depend on size of the property, however, location matters the most. For example, a small shop in a high street area may cost more, and rental yield could be lower, but tenant profile will be higher, vacancy risk lower, and the investor can enter into long-term lease agreements. Smaller shops in malls are sold to individual investors, but can be difficult to manage and poor location may mean lesser footfalls. Therefore, it’s always better for an investor to buy such a space in a mall which is managed by an established developer or a professional agency, even if this means capital values and maintenance costs being higher. The biggest advantage of investing in a retail shop is the higher rental return compared with that for residential property, which is a paltry 1.5-2.5%. Besides, the property continues to appreciate, though the rate of appreciation is not as high as for a residential property. Further, real estate is a cyclical business. Often, residential and commercial real estate cycles operate differently. If you have a significant investment in your existing home (residential), it may be wise to make your next investment into a commercial property as an alternate source of income. When investing, it is never a bad idea to diversify.