Struggling to make money out of the commercial real estate?
You are not the only one. There are so many people who belong to your clan. I know how hard it is to digest when people buy commercial properties and settle in life quickly.
Do you know what they do?
They don’t make mistakes. They learn from other’s mistakes. That’s the key to success in commercial real estate.
The good thing is that you learn from others’ mistakes. This helps you to know the pitfalls before stepping in.
Things you don’t know hurts you more. If you want to make more money out of the commercial real estate, then you should avoid these 5 mistakes.
These deadly mistakes are committed by most of the people in India. Even real estate tycoons have made these mistakes and lost millions.
The myth surrounding commercial real estate:
- People say it involves a lot of money.
- They say only business genius can do it.
- Finally, they say you are NOT QUALIFIED to do it.
1. Choosing the right location for commercial real estate
Once you buy a commercial land for sale that is not suitable for your purpose, then you should be ready to face reality.
Imagine you want to build a shopping mall and you buy a commercial land in a location that does not have proper connectivity to other parts of the city.
Then, how can you expect people to come to your complex?
That’s why I say Location should be your prime focus when you buy a commercial land for sale.
Few things to consider:
- Easy access by highways, public transit, etc.
- Water availability.
- Close to amenities such as supermarkets, shopping malls, schools, colleges, residential projects, etc.
2. Zero Development Potential
The development potential of the commercial land you bought decides the fate of your income. You must ensure that it is possible to build upon the commercial property.
You will lose your money even if you buy a commercial property in a prime location. Yes, it happens when you can’t build upon it.
Ask these 3 questions to yourself and make your buying decision.
- Is your soil healthy enough to support the building you want to build?
- Is the land prone to flooding or other disasters?
- Does the sewage system has easy access?
Get answers to these questions before buying commercial land for sale.
3. Not Working With a Team of Professionals
Hire a commercial real estate agent, attorney, tax auditor. They will help you to evaluate the land and make the right buying decision.
Read and understand the purchase contract completely before buying a commercial land available for sale. It would be better to hire a lawyer who can guide you in the process.
I would suggest you buy commercial property from Pahani.
Buying commercial land from them is like buying an iPhone from Apple. Your land is 100% safe and you will get good returns. They have a team of experts who have vast experience in the field of Real estate.
4. Incapable of Assessing the Space Needed for Commercial Real estate
A proper estimate and planning are all you need to asses the required amount of space. Always give some space for expansion.
Especially when you are planning to build a business center, there are high chances that you will expand your business. Suddenly you can’t create space for expansion.
If you can’t expand, productivity will be affected. Relocation involves a lot of money. So, it’s good to plan well ahead and execute it properly.
5. Not Reselling the Commercial Property at the Right Time
Most of the commercial real estate investors buy commercial land for flipping purposes. They buy the land when the market is down and sell it when the market goes up.
When newbies see this flipping process, they get tempted and jump into commercial real estate.
If you are solely looking for reselling, you should be aware of the market. Real estate is an unpredictable market. So, you have to be very careful about market fluctuations.
Just wait for the perfect time to sell your commercial land. If you are not able to assess the market conditions, I would suggest you hire a real estate expert to get it done.
Buying a commercial property should not be taken lightly. The commercial land shown by the agent might tempt you to close the sale. The agent’s job is to sell the commercial land to you and get a commission.
It’s your job to know more and make the best buying decision.
Researching about a commercial land for sale is a tedious and time-consuming process. If you invest your time to do these things, then you will surely buy the best commercial land.
Having more information beforehand will help you as a buyer, landowner, and developer.