LuckyTimber
Property investor
I would like one of these Delhi warehouse purchases to produce defensible income from the outset, but the numbers around ₹95,190,000 do not survive my full cost model with finance at 7.52%. Allowing for empty periods, management, repairs, insurance and property tax pushes the projected cash position below zero.
I am trying to work out whether the market response is lower leverage, a lower purchase price or acceptance of a thin initial return. The calmer way to test it may be to calculate operating income before debt, confirm which expenses the lease can recover from the tenant, and then stress-test downtime and work between occupiers. I would welcome comparable assumptions, with Indian legal obligations kept distinct from an individual investor’s willingness to take risk.
I am trying to work out whether the market response is lower leverage, a lower purchase price or acceptance of a thin initial return. The calmer way to test it may be to calculate operating income before debt, confirm which expenses the lease can recover from the tenant, and then stress-test downtime and work between occupiers. I would welcome comparable assumptions, with Indian legal obligations kept distinct from an individual investor’s willingness to take risk.