PURCHASING COMMERCIAL PROPERTY can be one of the most profitable investments you will make. However, there are a few steps you need to follow to help ensure your success.
1. Do your homework
Understand the local property market and the specific property type you’re interested in. Look at things like rental rates, vacancy levels and the physical condition of the property.
2. Understand the intricacies
Investing in Commercial property can be more complex than residential. However, if properly handled, you can generally enjoy twice the net return you’ll obtain from residential property.
3. Create a long-term strategy
Consider your overall investment strategy, and how Commercial property fits into it. Consider the property’s long-term potential, and how it can provide you with a steady income stream.
4. Seek professional advice
Engage a good property advisor, lawyer, accountant, builder and property manager to help you navigate the process of buying and managing a Commercial property.
5. Financing options
There are several different financing options available for Commercial property. It’s best to work with a mortgage broker to obtain indicative approval before finalising the actual purchase.
6. Spread your risk
Diversifying your portfolio can help reduce risk. Investing in different types of properties, in different locations, and with different tenants can help spread risk across multiple investments.
7. Be patient
Commercial property investments can take time to deliver their full potential. So, be prepared to hold onto the property for several years. Be patient and stay focused on your long-term goals.
Where to, from here?
You might feel you’re ready to purchase a Commercial property … but perhaps need some guidance along the way.
If so, you can watch this short video giving you some background to my Mentor Group. There’s absolutely no commitment – but it may just pique your interest.
Best wishes …
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