Are you looking to invest in your first commercial property or thinking about increasing your current portfolio? Before investing you should know what you’re getting into. You should look into what you’d like in your property (the essentials) and what you actually need in your property. This will help you choose what property to go for as it will separate the essentials and the wants. Furthermore, this will help you create your goal budget. As the more things that are essential to you, will mean that the price will be a lot higher.
However, this also means that if you were to sell the property in the future, you’d get more money back. Make sure your goal price isn’t too crazy, you want it to be affordable and if the investment didn’t go to plan, you wouldn’t want to be bankrupt. Remember that some properties are prices high but you can always negotiate the price.
You should also look into the method you are going to pay for the commercial property. You could pay up front in cash or do the deal over bank transfer. However, if you plan to pay monthly or in various instalments, its best to get in touch with a mortgage broker or an investor. If you already have current properties or previously did, you could get in touch with investors from them and ask if they like to join your venture. This is a great advantage as you already know how each other work and it will make any process to do with the property quick and easy. A mortgage broker would allow you to pay in monthly instalments which could very beneficial if the property needs work to be done, as the improvements or aspects that need to be fixed could be very expensive.
Another tip is to really research the properties in the area you want to invest in. You want to get the best property for your money and you want to know the area, as location is one of the most important factors when purchasing property. You may want to venture further afield to find your perfect property as its more than likely there isn’t one in your local town that ticks all the boxes, or it will be out of your price range.
Once you finally find the perfect commercial property you want to invest in (there are companies set up like Buy Rent Commercial that can help with all of this), you should get a full structural review and survey completed on the property. This will find any faults in the building that you will have to fix or improve which will cost you more money on top of what you are paying for the property. It will also help you work out if the price you are paying is worth it. Any faults that arise could potentially help you negotiate the price lower as you will have to pay more on repairs and improvements. If your looking for some advice in doing your first Commercial property investment you have come to the right place as this article will take you through everything about commercial property investment.
If you would like more information and advice on acquiring a commercial property for yourself, check out the helpful infographic below: