4 Things to Take Note of When Investing in a Commercial Property
Investing a large sum of money into a commercial, or just about any other property, can be a great investment.
Nevertheless, there’s still a time and place for everything, and if you’re well acquainted with the lingo and rules of investing money into property, per say, then you have to be aware of certain factors, including the location of the property’s area, the type of building you’re investing in, whether or not its already built or requires some renovating, the price thereof, the risks involved, and countless other factors.
While you can’t prevent everything from going wrong when investing your money into anything your mind will be put to ease in knowing that property is considered the most preferred and safest investment today, as the ROI in most areas offer a continuous growth.
Particularly, if you’re living in a city and you’ve got your eyes on a commercial property, here are a few things to take note of, before committing to a commercial investment.
What to Consider Prior to Investing in a Commercial Property
1. The location of the property
The number one most important thing to consider is the location of where you’re purchasing a property, particularly a commercial property, as you’re main should be to find a property that will make you a continuous profit. If you’re purchasing a commercial property in the middle of nowhere, for instance, you surely won’t reap the same benefits of property investment, then you would’ve in a lucrative city, such as Cape Town, Johannesburg, Durban, and more. You must additionally always consider your consumers and whether you’re purchasing a property that is easily accessible for them.
2. Consider the building structure
With any type of property, you must ensure that it has been properly inspected by a qualified professional. You must also consider whether the building type is adequate for what you’re planning to do with it, whether it is strong enough to withstand its area, is free from chemicals like asbestos, and also, isn’t susceptible to either extreme weather conditions or natural disasters, such as earthquakes.
3. What will the building be used for?
After deciding on the location and building itself, you must figure out all of the minor details, including how you’ll use the building, once purchased. You should consider whether you’ll be an owner-occupier or have tenants. If you’re an owner-occupier, you must consider whether you can afford the rent of the building you’re leasing/ own, and how you’ll sustain the building with a business or whatever you would like to use it for. If you have tenants, you must ensure they can afford to lease your commercial property and are reputable to trust.
4. Consider how to manage your commercial investment successfully
Consider whether you will manage the commercial investment property yourself or have a property manager manage it for you. Often, tenant commercial properties require a lot of time, as well as experience to manage the property properly. If you have excellent property management skills and time on your hands, you can manage your commercial properties yourself. However, should you require assistance, be sure to invest in a trustworthy property manager that is adequate for the job.
Get your business listed in our South Africa construction company directory today!