When the realty market is going through a serious lack of momentum, you might think twice before investing in real estate. But investing in real estate at any time is not a bad idea no matter how slow the market is. However you may want to rethink about what kind of real estate you want to invest in. It can be land or residential or commercial real estate. All these types of real estate assets have their own advantages.The chief advantage of a commercial property is that the rental returns of a commercial property are much higher than that of any residential property. While a residential property can give rental return of about 3-4%, the rental return for commercial property can be about 7-8%. The return becomes even greater when the 30% standard deduction is factored in. the property value also appreciates year on year. A commercial property can come in good use in troubled times. Residential properties can be hard to sell but there is almost always demand for office space. Besides office space one can even invest in multiplexes, shopping malls, retail outlets and IT spaces because these are the most demanded commercial properties in India.However one chief obstacle that stops many from investing in commercial properties for many is the cost of a commercial property. Here many people start thinking about taking a commercial loan. But before you consider that here are some facts about commercial loans that you ought to know.Higher rate of interest: The rate of interest for commercial loans is considerably higher than that of residential properties. While the rate of interest for residential property is 10-11%, rate of interest for commercial property loan is 13-14%. Similarly the processing fee, service taxes and other taxes are also higher.Documentation: If you thought the documentation process for residential property loan is confusing, complicated and borders on being a major harassment then a commercial property loan is worst news for you. The documentation process is almost endless which scans all the personal and legal documents of the applicant for the loan. Legal documents of the business and the organization as well as statements of income, profit and loss, cash flow, balance sheets etc all are scrutinized and scanned in depth to reach a decision whether the loan will be sanctioned or not. The process can test anybody’s nerves. Therefore if you do not have patience you may easily lose this battle.Qualification: Not any one can get a commercial real estate loan. One has to qualify for it. The benchmark set for anyone to qualify to receive a commercial property loan is several years of tax returns documentation. Most banks ask for this. Your records should be clean as a whistle to get you a commercial loan. Even then if you are opting for a loan for an eating joint or a restaurant then you might have to go through greater demands to qualify for the loan than if you are looking for a loan for an office or retail space.Sanction: After you have gone through every other process you have to wait for the loan to get sanctioned which may take some time. Therefore make sure your records are crystal clear and your approach is organized.Do not let all the information bow you down. This only to help you take a more informed decision and help you to be better prepared for what would come your way if you apply for a commercial real estate loan.займ на карту без отказов круглосуточновзять кредит онлайн