Tag Archives: commercial property investment

The Importance of Commercial Property Investment in a Prime Location

Posted on May 21, 2015 by

It is no hidden fact that investing in a commercial property situated in a prime location is a beneficial and wise decision. Commercial property investment must be done in a prime location, so that you enjoy all the benefits of investing in a property. For people who do not have a clear idea about the benefits of investing in a property situated in a prime location, yet are willing to do the same, here is a guide on commercial property investing:

profit in commercial investment

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Hire a Broker While Investing in a Commercial Property

Posted on December 30, 2014 by

Hiring the right broker for your commercial real estate deals is one of the most important business decisions that you can make. Though it depends on your investment proficiency level, but getting an experienced broker while purchasing a commercial property for investment purpose, can help in identifying the do’s and dont’s of property investment. Proper negotiation with the help of a broker can help you in satisfying all potential buyers. As for the experienced players, they are fully capable of operating independently. However, if you take the help of a broker, it will help one way or another.

commercial property for investment

In commercial property investment, it is very likely that you would require the assistance of a broker. If you are able to find a broker who is experienced and familiar in the industry, he will be able to provide you with a clear direction in choosing the perfect investment solution. For example, if an investor intends to purchase a building that is abandoned, in order to restore it and further rent it out to businessmen in retail industry, a broker may be able to help the investor by suggesting the future potential of the chosen area. The investor will then be able to make a proper judgment on whether the money that he is investing will provide good returns. Without a broker’s advice, the investor is capable of making wrong investment decisions.

Investing in commercial properties requires a great deal of planning and brokers can do a lot more than research about the target area, they help investors in spotting the right investment opportunity. Most of the time, a broker is able to suggest to a potential investor the right property with high returns. A broker may even have inside information about a property that is going to be publicly listed. This will provide the investor an opportunity to assess the information in detail and much earlier than other people. Lesser competition provides the investor with an advantage during negotiations with the property owner. With extra commission, a broker can even negotiate on behalf of the investor. This is a win-win situation for both the investor as well as the broker.

Top 4 Reasons to Invest in a Commercial Property

Posted on October 29, 2014 by

Investing in a property is one of the best decisions, but often people get confused whether they should invest in a commercial property or in a residential property. It is always a good choice to invest in a property that gives high returns and there can be nothing better than investing in a commercial property. While making an investment in a property, make sure that you are careful and follow one step at a time. Here are some factors that will help you understand why it is beneficial to make an investment in a commercial property.

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A commercial property is an investment property with returns: If you own a commercial property, you can generate a good monthly rental and increase the return on your investment. Moreover, while renting your property, you can involve your tenant in a long term lease. This will ensure that you keep receiving the rent for a long period of time. In cases of residential property, the tenant might sign a short term lease and you may have to look out for a new tenant in every 6-12 months.

Tenants of commercial properties are responsible: For some property holders, renting a residential property becomes a nightmare thinking about what kind of tenants will be living in their property. But when you rent a commercial property, you can be assured that your property will be safe as it will be used only for some hours everyday. Tenants of your residential property can throw a party every night, but this will not be the case if you rent a commercial property.

Commercial property investment market is less competitive than the market of residential property: When we compare the market of residential property with the market of commercial investment property, the later is undoubtedly less competitive. There is less demand of commercial property, but once you find a potential tenant, you can be assured of high returns.

Commercial property is used for limited hours: If you rent a residential property, you must be prepared to attend your tenant at any time of the day, even at midnight, in case of an emergency. But, the case will not be the same if you rent a commercial property as the commercial property is used only for a limited period of time on a daily basis.

When we consider the above mentioned factors, it becomes certain that investing in a commercial property is undoubtedly a better option.

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Mistakes to Avoid While Making a Commercial Property Investment

Posted on September 5, 2014 by

When we think of investments, there can be nothing better than investing in a property, and if you are thinking of an investment property with returns, you should always opt for a commercial property. Gurgaon, the millennium city, has developed tremendously in the recent years and there is an availability of various office spaces in Gurgaon. If you too are thinking of investing in a commercial property, you can consider choosing Gurgaon as your location.

Mistake you should avoid in property investment

Many of us know that is a wise decision to invest in a commercial property, but only a few of us are aware of the mistakes that we make while making a commercial property investment. Let us have a look at a few mistakes that one should avoid while investing in a commercial property.

  • Going Wrong in Analyzing the Market Trend: This is one of the biggest mistakes that a property buyer can make. Analyzing the market trend is of utmost importance, specially in cases of commercial property investment. Keep an eye on the ongoing trend and assess whether the time is right or not to invest in the commercial property. The small mistake of not analyzing the market trend can prove to be heavy on the pockets.
  • Not Checking the Property Details: Whether you are buying the commercial property or are considering the option of taking the commercial property for rent, do not go by the outer appearance of the building. It is always important to check the property from inside. Before paying the money, look for any damages or problems that need to be rectified. Apart from the infrastructure, also keep a check on the taxes that you are paying. Make sure that the taxes are of the current rate.
  • Not Analyzing the Budget Properly: Before making an investment in a property, you should assess whether it is suiting your pocket or not. This budget includes the taxes, title work and approximate cost that will incur in repairs, to name but a few. If this cost sums up to more than your income, it is unreasonable to invest in such a property. Also, if you are willing to rent out your commercial property, take an idea of the general time taken in renting out the property in that location.
  • Putting Excessive Money in the Property: It has been generally observed that people borrow money from banks when they plan to invest in a property. Make sure you not put in too much money in buying the property. Always remember that you will have to return the money and that too with interest. The initial years might not be extremely beneficial, but you will have to pay your bank on time. This might be a little heavy on the pockets, thus it is advised that too much money should not be put in a property.

By keeping the above mentioned points in mind, you can avoid making mistakes while investing in a commercial property.