Some Commercial Property Buying Mistakes to Avoid

As professional real estate consultants, we meet all kinds of investors. There are some who want to play safe with their investment in a property that may not promise the biggest payout and has fewer risks. There are some who don’t want to put all their eggs in one basket, and they prefer investing in multiple low risk properties. Then there are those who want to tap into the commercial real estate sector. Their budget varies, but they are typically up for bigger profits despite the bigger risks.

That is something we commonly learn about commercial real estate investments, don’t we? People talk about risks a lot, and why shouldn’t they? There are a plethora of horror stories. We, however, believe that the risks can be drastically brought down if you can make a more educated decision. Avoid some of the worst mistakes such as:

• Not inspecting the property properly – No one likes a lemon! Whether you plan to run a business or rent the property, make sure you are aware of every nook and corner.
• Not thinking as prospective buyers – Sometimes investors don’t plan to sell the property anytime before 10-20 years. See if the location is likely to remain lucrative for buyers in the future.
• Not considering the growth factor – The business is likely to grow. If the property cannot accommodate the growth, it means you will have to invest in another one, maybe sooner than you plan.
• Not understanding the costs – So, there is an upfront cost and an ongoing cost. Did you consider both of them? If not then you might be in for a bad surprise.

Don’t let such surprises ruin your prospects of real estate investment. Work with our agents and let them help you make a better decision.