
Explore why to invest, what to invest in across debt, equity, and real estate, and how to evaluate properties using yield, IRR, and Moik, with notes on taxes in India.
Engage in a role-play approach to understand why people invest and practice making decisions when a sudden bonus arrives.
Compare asset classes for investing savings and examine why real estate, especially grade-a office pre-leased properties, offers income, upside potential, and diversification through direct, reit, or online platforms.
Compare yield, cap rate, MOIC, and IRR across properties, assessing rent, capital appreciation, and time value of money to guide long-term investment choices.
Explain how a performance fee works for an investment manager, applying a 20% fee on excess returns above an 8% hurdle rate, illustrated by an IRR of 15%.
Understand taxes on an Indian commercial real estate investment, including central income tax, GST, stamp duty, property tax, and TDS across purchase, rent, sale, and capital gains.
Wraps up the fundamentals of real estate investing, covering asset-class choices, selecting residential or commercial property, evaluating commercial deals with yield and IRR, and understanding India taxes and performance fees.
This course in designed for beginners who would like to acquire introductory conceptual understanding of basic commercial real estate investing concepts.
This course is designed using practical examples which forces the student to apply his/her mind while absorbing new concepts by putting the student in a decision-maker's role while solving issues relating to where and how to invest his/her money.
The course is an hour long and includes the Why, What and How of commercial real estate investing; that is - Why do people invest?, What do people invest in? and How do investors evaluate and select property?
In Why do people invest? - we explore the need to invest savings in a safe and rewarding way.
In What to people invest in? - we explore the different options for people to invest their savings including various popular asset classes like fixed deposits (debt), equity, gold and real estate. We also explore the sub-asset classes within real estate like residential and commercial real estate and the different ways in which one can invest in commercial real estate.
In How do investors evaluate and select property? - we explore the different tools and formulas used by investors to compare similar properties to make a choice to invest in the best option. These tools (formulas) include Yield (or Cap rate), IRR (Internal Rate of Return), Profit and MoIC (Multiple of Invested Capital).
At the end of the course students are given a glimpse into 2 more concepts - Performance fees and taxes.