|Buying Property Tips#1: Choose the Right Location|
|Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.|
|Buying Property Tips#2: Study the Local Market Dynamics|
|It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.|
We all know that investing in commercial real estate ensures faster and higher returns compared to residential real estate. However, commercial real estate is a diverse market which has many sub-sections that allows investors to choose among the different types of properties. If you've made the decision to invest in commercial real estate, then you also have to consider the underlying elements in order to find the potential property that will gain maximum ROI.
Commercial real estate can be classified among four property types:
If higher returns are the only thing you are interested in then offices and warehouses generate highest profits. Tenants that occupy office buildings and warehouses usually sign longer leases, which guarantees steady rental income for years together. On the other hand finding office and warehouse tenants takes longer than other types of commercial tenants. However, hiring a commercial real estate management company can solve this problem. They will not only find suitable tenant for your property, but will also provide other services.
|Buying Property Tips#3: Choose the Right Property|
|Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.|
|Buying Property Tips#4: Do the Math Properly|
|Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.|
|Buying Property Tips#5: Consider Additional Expenses|
|When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.|
One of the reasons why most investors prefer investing in retail is that as taxes and expenses increase, so does your return on investment. Another reason is that you have the benefit of acquiring an extensive range of tenants under a single property. However, investing in retail is all about location, if your property is located at the right location, you return on investment will keep on increasing as your tenants make profits. If you are looking for tenants for your retail property contact a commercial property management firm today.
Most average real estate investors who do not expect very good returns will invest in this type of property. Generally it requires small amount of capital during investment as well as the maintenance cost is low compared to retail and office properties.
Land development is considered to be one of the most exciting types of commercial real estate. However, if gone wrong it can teach you some painful lessons too. So it's essential to study this type of property in detail before jumping into it. If you've already invested in it, the best way is to start small and work your way up with this type of property. This will also allow you to learn and get comfortable with this type of property.
|Buying Property Tips#6: Inspect the Property|
|To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.|
|Buying Property Tips#7: Pick the Right Financing Option|
|While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.|
|Buying Property Tips#8: Invest through Equity|
|One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.|