Time to get serious.
Hello Sweet Nephew,
Is that you in that truck?
This project is interesting! I look forward to watching it develop.
It looks like you are improving an unattractive area.
Hey Aunt Vickie…not me…some worker. I am developing a commercial property in the outskirts of the city…and a residential property in a working class neighbourhood
I want to earn a decent rental income out of that eventually.
I read it Mr. Lonely Heart.
Don’t worry. There’s always more fish on the property ladder.
Congrats man, this is a smart move indeed! My family has a lot of farm and commercial area on the town outskirts. However, we never thought of doing something. Now you got me thinking.
Just in case you ever want to liven up those long days laboring, I found this:
Let me know if you need any help curating an epic playlist to pass the days with. I’ll be more than happy to help.
Boring. Why don’t you start a long-stay guest house / co-working space for digital nomads? Tie your two worlds together so to speak. I could also easily run something like that for you FOC if you let me live rent free. (In my own apartment, pool not strictly necessary but would be an advantage). I can even use some old industry contacts to nab some free marketing and quality assurance awards.
The beauty of that is that you can increase rents/overnight bed prices as you build your reputation and diversify your income streams.
Think about it.
My sister bought many smallish appartments and houses in my home town. She now rents them out by the night, week, or month and make more $ per day. Also she does not have to rent long term to families with children who tend to be hard on rentals.
Alas, the curse of Airbnb. Rents where I live have gone up 100% in 2-years because of that blooming app. The ridiculous thing is, we still have a surplus of 70K properties turning into rubble because no one lives in or uses them.
That said, tapping the hospitality and emerging co-working space market would (I think) be good for Mr. Investor. You do avoid the problems associated with long-term tenants. Plus it can be way more profitable. Add vending machines (easily done FOC) offer on-site laundry services, tour bookings, onward travel bookings. You end up having your real estate and a mini gold mine providing you’re clever.
In my last hotel in NZ, I ended up making us more in onward travel and activity booking commissions than we took in bed nights. Think about it Mr. Investor. It could be your calling. - Just remember you need the right kind of manager.
No, the co-working space idea would work in my area - where my house is, BTM Layout or Koramangala or HSR layout, which is the start-up hub of Bangalore.
The commercial property is at the outskirts of the city, what works there is hardware stores, retail stores, clothing/shoes/etc specialized stores etc, or maybe restaurants and coffee shops. That is the fastest growing area of the city bcause it is still underdeveloped.
The other property I am developing is in North Bangalore, a working class neighborhood. I plan to build eight 2-bedroom+hall+kitchen apartments there, strictly for lower middle class or middle middle class families.
This area has low potential for growth, it is crowded and congested, just as what you would expect in a third world country. But my location is good, corner site, opposite park. Should have no problem getting tenants. It is much easier to get tenants for smaller apartments in working class areas than high-end apartments in upper class areas. I expect 100% occupancy from the first month itself.
But I am taking the construction slow. As of now, the markets are down. I want to wait out 1 year before I start with the actual construction. Right now I am preparing the sites, clearing up the debris, securing them with guardhouses, preparing my finances, arranging a team, etc.
Last thing I want is to make the loan payments out of my own money. That should come from the rental income only.
I like that.
NO RICH PEOPLE ALLOWED. POLICE WILL BE CALLED
Anyway, you missed my point. The coworking/accomodation business would be focused on international consumers. Digital nomads who want cheap digs and uninterrupted connectivity in ‘the real India.’ You haven’t traveled. Trust me. Backpackers and digital nomads avoid CBD areas. They want to experience the nitty gritty parts of places.
Anyway, I’ll drop it. We could never realistically work together.
LOL…digital nomads want to come to India? That’s funny
Dude. You need to get hip with the visa and perks scene. Chiang Mai in Thailand was digital nomad heaven. Thailand changed visa rules and now the emerging hotspots are Cambodia, Georgia, Laos and the Philippines.
Problems with most of the aforementioned destinations include poor Western life expectancy and/or language barriers.
I could make a killing in India by creating a digital nomad hub. Granted, though. I’d place mine in Goa.
Maybe before you build, research your full possibilities