How to Get the Most for Your Money When Investing in Commercial Property
While online and e-commerce businesses are continuing to grow, purchasing physical commercial property can still be a very lucrative investment. Even many online-only companies still need an office space for their employees, require professional meeting rooms and facilities when meeting clients and investors, or must have a warehouse to store their goods and products.
However, when it comes to purchasing commercial property, how do you know if you are making a worthwhile investment? Here are some tips to help you get the most from your commercial portfolio.
Valuation and Survey
You may have found a great commercial property at a fantastic price and in a popular business area, but just because it ticks all of the boxes, does not necessarily mean it's a good investment. To avoid any expensive surprises, before you commit to the purchase, it is always advisable to pay for a valuation and survey from the likes of GVA Grimley. While an extra cost, this professional service will ensure that you are informed of any possible issues, helping you to make an informed choice and avoiding any costly work further down the line.
Always Negotiate
If you own your home, then when it came to putting in an offer, you probably didn't go straight in at the asking figure and instead, went in with a lower price. Just like residential properties, making a commercial investment is no different. While the space may be listed for a particular figure, there is no harm in negotiating. If the seller is prepared to sell for less, then you will be able to purchase for a lower price, which could potentially boost your rental yield. Alternatively, if your lower figure is rejected, you can work your way up to a price that suits your budget and meets the seller's minimum figure.
Put Your Investment to Work
In addition to carrying out a valuation and negotiating the price, there are ways you can ensure that your commercial properties generate revenue, even without a paying tenant in place. The key here is passive income; revenue that takes care of itself. There are a number of ways to secure passive revenue, such as installing solar panels and adverts. If choosing the former, solar panels can generate energy which can then be sold to the grid, providing income. In terms of adverts, you could make use of billboards or display multiple advertisements through a digital screen.
Commercial property can be a fantastic investment but before committing to purchase, always get a valuation and survey, and negotiate the price. Remember to also put your investment to work with passive revenue.
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