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:
Benefits of investing in a commercial property that is situated in a prime location Continue reading “The Importance of Commercial Property Investment in a Prime Location”
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.
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. (Diazepam) 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.
It is becoming a challenging task for Non Resident Indians to invest in Indian property as rupees are touching the grounds in comparison to the dollars. Different cities from Delhi and Mumbai to Gurgaon and Noida, every town offers commercial property for investment purpose. If you are an NRI and planning to invest in property in India, preferably consider investing in commercial real estate. Finding a commercial property is not at all difficult, but investing in the right one requires little caution. Below are some tips for NRIs to look before investing in commercial property in India.
Location: Before choosing a commercial property for investment sale, make sure you check economy, job market and population growth in the market. Moreover, investors should check the reliability of the location, along with demand and supply dynamics. Appropriate research is very much needed before investing.
Type of property: Once you have decided on the location, check the type of property you want. The most popular properties for this include retail and office spaces, but preferably go for a property with good return. Till few years back, there was only large units available in both, which made it difficult for small investors to invest, however, with the smaller spaces, it has become quite easier. In addition, experts believe that investing at high street is more beneficial than a mall as it can be failure. This is because shops in a mall are sold before its construction and developers restrict to sell a store as a unit.
Expected returns: Professionals suggest keeping a higher budget for any commercial investment will provide higher return of investment. When you buy a property make sure you get at least 11 to 12 per cent of return. The income generated from a commercial property determines its value or it can also be said that capitalisation of the property directly depends on the demand for the property. Investing in commercial property can be a high-return game if you do your homework well.
These are some of the important tips that would help you to invest in right type of commercial property at correct location, which will provide maximum return of investment.