Property as investment for return

Querist : Anonymous (Querist) 16 October 2011 This query is : Resolved
Dear Experts,

A retired person wants to invest his hard earned money in some property at some business location in a city, so that he is able to get secure, regular income from that property commensurate with prevailing market rates and also when he desires he should be able to sell it and get the prevailing market value of property.

It is well known that if one gets into some kind of tenant/ landlord legal relationship then in long term it becomes very difficult to get rent according to prevailing market rates. Also eviction of tenant becomes very costly, time consuming and next to impossible.

Is there any other way by which the business/ investment interest of the property owner be well protected? Like getting into some kind of business partnership agreement in which the property is provided as a business investment on conditions to get regular market returns etc. And post dated cheques are taken in advance.

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ajay sethi (Expert) 16 October 2011
a retired person should first think about safety of his capital .

besides monthly income plans he can invest in balanced funds promoted by reputed mutual fund houses .

i would advise retired person to visit value reserach online a sitwe which gives rating to various mutual funds . invest only in 5 star funds recommended by this site

prabhakar singh (Expert) 16 October 2011
Invest in equity and debts instruments of those mutual funds whose portfolio has a 20:80 ratio of equity n debt.

Sailesh Kumar Shah (Expert) 17 October 2011
If in your mind that business/investment interest, reveal here. I will advsied accordingly. Both experts also suggest you good idea.

Querist : Anonymous (Querist) 18 October 2011
Thank you Ajayji and Prabhakarji for your suggestions, they do make practical sense.

Shaileshji the main interest is:
1) Appreciation of the value of original principle amount to beat the inflation.
2) Side by side some regular income from it.
3) Be able to sell it when one desires and get the prevailing market price.

Example the principle amount is invested in some property like showroom etc. in some business location in city, like shopping mall or complex etc. then given on rent/ lease/ license or some form of practically and quickly enforceable legal agreement with some company. The investment(principle amount) will appreciate according to the market and rent will also come regularly. In the end when one desires, can sell the property and get the appreciated market value.

But the fear is the usual practical problems faced by those who are "landlords" in the eyes of law. Like the rent of the property does not get increased periodically as per the prevailing market rates. Tenant neither agrees to give the rent as per prevailing market rates nor agrees to vacate the property but simply goes to court and the matter prolongs indefinitely. Eviction also becomes next to impossible. Therefore the resale value of property also drops in comparison to the prevailing market prices. The owner of the property is hardly left with any meaningful or practical options except:
1) Agree to the dictates of the tenant.
2) Decide to spend rest of his time and money litigating in courts.
3) Sell the property at a discounted price which is well below the prevailing market price.

Sailesh Kumar Shah (Expert) 18 October 2011
Dear Author,

1.Purchase shop in mall;
2.Let out on only multinational company or having chain of shops in all over india.
3.From above you would secure other than local tenant.

Querist : Anonymous (Querist) 18 October 2011
Thank you Shaileshji.

Property as investment for return

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