Investments / Commercial / Assured Return

As the name itself suggest, it means buying a property with preset return assurance for a stipulated time frame. It may be under construction or ready to move in.

When an assured return is offered on a property that is under construction, a formal agreement between the buyer and the seller is undertaken, under which the seller promises to give the buyer an assured sum each month till the property is ready and possession is formally handed over. Assured property returns are promised for already built properties as well, wherein the seller finds a tenant and assures a fixed rental income to the buyer. Importantly, in such situations, it is important that the investor and the developer have to mutually agree to an assured amount, which is decided as a percentage of the total worth of the property. This percentage normally varies between 8 per cent and 12 per cent.

How It works??
Developers calculate the assured rental amount based on several factors including scale of the project, location, viability and appreciation potential. However, it is important that both the investor and the developer finalise a rental rate before signing on the dotted line.

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