Steps To Invest Your Money in Commercial Property – greenstreet real estate partnersMarch 7, 2018 Off By Montero Theo
Are you looking for commercial properties to invest? Do you know where to find a commercial property or how to invest in commercial property? Buying commercial property for investment requires a lot of groundwork. Find out your reason why invest in commercial property rather than trading or other equity investments.
Real estate is always considered a favorable investment option but buying residential properties has seen its highs and lows in the recent years. It is better to invest in commercial property as it gives better returns and commercial spaces are always in high demand than residential buildings.
Reasons to invest in commercial property
Investors need to bring a lot of money into the commercial real estate game. This is one of the reasons why few investors enter this real estate game. They should be capable of high risk-taking but the potential returns are also very high. Shops, business complexes, and office spaces come under commercial properties.
Before venturing into the commercial property investment analyze the purpose of the commercial property, investment amount, possible returns, risks, and exit options. Where to find commercial property for investment is the next big question. As usual, any real estate venture is always about location.
Why location is crucial for commercial property investment
The returns on a commercial property vary with location. If you buy a shop in a high street area, the cost of investment is high and returns will be high due to the tenant profile in the neighborhood. If the shop is located near a residential complex, the cost of investment will be low and rentals will be low. Invest in a good office space since they are too many start-ups in the present day looking to set up a new office.
If you are thinking why to invest in commercial property with risks, and then try to buy in malls or business complexes. It is better for conservative investors to choose an established commercial property rather than buying a new property. It is better to give the commercial property for lease if you do not want the additional costs of maintenance and repairs.
Quality of building
A better quality building attracts customers and high rentals too. Before buying commercial property for business, check for the building certifications and check if the building has a good environment. A high-quality lobby with well-planned staircases, number of elevators and high ceilings bring in a lot of rentals. Properties which look good are sold for rentals or lease faster than the rest.
Check the demand in the market
If you are a savvy investor trying to figure out how to invest in commercial property, look at the market and neighborhood where you narrowed down for buying. Find out if there is a demand for commercial property or are there too many existing offices already which can negatively affect your investment.
Get tips from existing owners on how to invest in commercial property to get high returns. The quality of tenant will also affect the returns of your property. Partner with multi-national firms or reputed firms instead of renting it to an unknown person.
How to buy commercial property for business
After successfully founding a startup company, you might be thinking how to buy commercial property for business to boom and get stability. Purchasing property for a business is an excellent idea. It is a wise investment decision and the returns will be great too. You will have the freedom to design your office space as per your taste and needs. There will not be a need to worry about monthly rents and lease agreement renewals.
Are you a first-time property buyer?
“I want to buy commercial property” is often toned down by people around you saying it as the high-risk investment. Though the risk factor is high than residential complexes, it is worth the choice. For first time investors, buy a small commercial property which gives consistent returns. The return on investment depends on what kind of space is being used for. Look for a coffee shop in right location near to offices or shopping center. It yields better than a shop near to residential complex.
Put your property for lease as you will not have any experience in maintenance and its repairs. Also, do not invest in any kind of furnishings. Leave that choice solely to the tenant which saves you money. Also, keep in mind the property size before buying the property. Consider the land development around it and the future value of the property. Buy in a developing locality as the chances for the property to double in value is great in the future.
Things You Should Know For Buying an Apartment – greenstreet real estate partners
“I want to buy an apartment” is the best decision a tenant can take after getting sick of living in the rented homes. It would be wiser to buy an apartment of your choice rather than wasting money on rentals. Some serious questions which hit your brain after making such a decision are how to buy an apartment complex and steps to buy an apartment. Buying your first apartment is an exhilarating task. You need to look out for many variables like the location of the apartment, the area of the flat, resale value, mortgage, and value for money.
Can you buy an apartment?
If you are looking to buy a home with less maintenance, then buying an apartment is the ideal choice than an independent home or villa. Purchasing an apartment involves more than spending your savings and heading into the mortgage. Property tax and owner association fund, etc. come into light when you finally decide to buy an apartment complex.
Analyze such hidden payments before venturing into buying your first apartment. Plan by asking yourself whether “can you buy an apartment complex” which is beyond your limits. Stay within reasonable limits by checking the mortgage payment time and number of installments and the average amount paid per month.
How to buy an apartment complex? (Steps to buying)
Steps to buy an apartment will tell you in detail as to how to proceed. First, select an area/location where you intend to buy the house. Research the market price for an apartment in the given location. Look for recent sales made in the area and talk to real estate agents or developers to know the buying prices of apartments. Try to visit as many apartment complexes as you can before buying the one you like. Finalize on an apartment which suits your taste, style, and budget.
What to look for in buying an apartment
If you have found the apartment of your choice, make sure to check the surroundings. Find out how far are the banks, hospitals, schools, and parks from your building. It is a very valuable tip to find such information beforehand. Look out for grocery shops, gym facilities, ATM’s and hospitals nearby before finalizing the deal. Carefully look out for disturbances which can affect your lifestyle near the apartment of your choice.
Avoid places near to high traffic as you would not want your nights tossing on the bed due to loud horns. Also avoid places near to clubs and bars as it is bound to get noisy over time. Consider the age of building before buying it. Is the building in need of repairs and replacements and check out the credibility of the apartment complex developer as it helps to find out about the quality of construction?
Look into the security measures of the building and how the apartments are protecting their privacy. If you are wondering, what to look for while buying an apartment, consider your family size, lifestyle and which space is most used at home. If you have an active social life, opt for apartments with a big living area where you can set up a bar for drinks to entertain guests.
Consider the maintenance charges and how to pay them. Ask if the building needs a security deposit or owners welfare fund to use for repairs and such. Make sure you have ample parking space. Some buildings will provide extra parking space upon paying a small fee. Use such facilities if you have frequent visitors with vehicles.
Steps to buying a home made easy
Steps to buying a home are made easy if you follow all the above tips. Consider how much budget you are allocating to buying the property and how much loan or mortgage is required. Check the mortgage rates with different banks and finance firms to see which works best for you. Also consider the land value and property value separately and how much profit you would get on resale.
If the property is new and still in the hands of the developer, make sure to ask for the possession time of the apartment. A developer will give you a clear estimate as to when he will hand over the property after construction. Check all the legal documents beforehand and make sure the property is a legit deal. Read all the agreements carefully from the developer and banks before signing them.
Make use of an advocate to find any hidden charges and additional expenses you need to shell out before possession of the apartment. Discuss who needs to pay for major repairs in advance and find out if you can make any alterations before moving into your house.