Commercial property ownership is not an easy thing as it involves a lot of money. If you see someone who owns a commercial complex, you call them a millionaire.
You know why?
Deep down, you know that he owns something that generates a huge revenue every single month. If he is gonna sell, he will get crores of money for sure.
Commercial property is something that’s not going to depreciate. Day by day, the property value is going to increase. There are so many benefits of owning a commercial property.
All these benefits come to the ones who are willing to invest a huge amount. Either you can buy a complex or build a complex, it’s up to you.
1. Type of Commercial Property matters more than anything
The type of commercial property you are planning to own is the key here. Each type has its own pros and cons.
- Business centre
- Shopping Mall
- Hotels & Restaurant
- Medical centre
- Retail stores, etc.
The list goes on. You have to choose the one that you are confident about. You have to alter the property as per the type of commercial building.
If you are planning to construct a building in your commercial land, then plan accordingly.
Every business has some guidelines. Hospitals are subjected to be built in a particular place following the guidelines. If you are planning to buy a commercial property, then you have to verify each and everything.
Proper planning and execution will save you time and money.
2. Renting or Buying a Commercial Property
This is the puzzling question people ask realtors. Should I buy or rent a commercial space? The question is simple. But answering that question is not easy.
Your business type answers this question. If you are applying for a loan requesting a huge amount, then go with a rental. Because bank interests are very high.
If you are planning to buy a commercial property and rent it for a monthly income, then analyze the market properly. Just consult a realtor to get as many details as possible.
If you ask me personally, I would prefer buying commercial land and build something as per my plan.
3. Right Location = 50% Success
In commercial real estate, location decides your success. If it is located in a prime location with the right audience, then nobody can stop you. Money will shower like anything.
Let’s say you are going to run a hotel business, what would you prefer; a main road or some street for which you have to take 10 turns.
Prime location with good road connectivity is a jackpot. These locations have good foot traffic and easy access. Know your customer better. Think like a customer and decide your location.
Competition is another big thing that can destroy your business even if you are in the heart of the city.
4. Right Financing Option will save your money
This is the part where so many people get stuck. They have a great idea of starting a business. Even they would have finalised the commercial property they are gonna build or buy, but they struggle at the focal point.
You need to choose the right financing option. You can go for a loan, but interest rates are very high. You can also try a joint venture where you share the profit.
Always go for low-interest route because the commercial property investment involves a huge sum of money. The best way is 50 50 rule. Invest 50% and borrow 50%. This is the ideal strategy.
5. Research Now Rewards Later
If you do proper research about the commercial real estate property, then you will surely stay one step ahead. So many people step into commercial real estate without knowing what it is. Eventually, they face loss as a result.
To avoid this, you have to know more about the property. A realtor can help you get the necessary information about the property beforehand. You can also go to the field and gather as many details as possible.
Inspection is also extremely important. You have to check the pipeline, wiring, etc. to ensure that everything is in line with your expectations and guidelines. Just have a chat with neighbours to know more about the property, the surrounding area and other important stuff.
I agree with the fact that commercial real estate is lucrative. If you make every move with meticulous care, then you are going to be successful for sure. Property location is key to everything. It will influence each and every activity of your business.
To make key decisions, get assistance from realtors and legal experts. They will surely guide you on the right path. You can also buy commercial land from Pahani who have extensive experience in the field of commercial real estate. You can also sell your land using this portal.