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The Complete Guide to Investing in Commercial Property

Property investing remains a very buoyant and exciting area in the real estate market. Buying a property anywhere is a lucrative investment, especially in the long run. Currently, the market is flourishing with the commercial spaces and residential projects. Although, the general consensus believes that buying a commercial property is always better than buying a residential property because of higher return rates. Having said that, buying a land, be it for a commercial purpose or for residential use is no easy feat. There is a checklist which needs to be followed for both.

Here we have created a complete guide which will help you invest in commercial property wisely.

The main concern of buying a commercial property is the initial cost, which keeps on fluctuating depending upon the market. However, commercial property sale gives higher returns than a residential property.

Mentioned below are the factors which you should consider before buying a commercial property:

1) Down Payment

Banks offer only 80 percent loan to the buyers of commercial property. Therefore the purchasers should have a right amount of capital in their hands.They will need a 20 percent for making the down payment so that they also get the loan quickly.

2) Location

The location of the property is crucial. If there is an oversupply of similar properties in that area, then there is no point of investing your money there. A massive infrastructure around the location also boosts the demand for the commercial property. Pick a site which is expected to be benefitted by the upcoming infrastructure projects in the near future. Check if there are any good restaurants, shopping malls nearby as people are more likely to visit the area in that case. For example, if you are planning to buy a commercial property in Jaipur, then look up for the upcoming projects that will be beneficial to your location.

3) Maintenance

Maintaining a commercial property can dig a hole in your pocket. Therefore, you should build an estimate of the total amount which will be required for maintenance. The expenses includes the property tax and building insurance. Create a budget and adhere to it. Search properties in sync with your budget which also includes the maintenance cost.

4) Market watch

Before buying a commercial property, understand the market situation. Closely consider the current market rate and its prospects. This will help you access if it is the right time to invest or not. Ideally, buying the property when the market is down is the correct decision as you can also bargain at a good rate. Study and research if there is or will be a demand for the office or retail space shortly on good rates.

5) Seek expert advice

Seeking an expert’s advice is surely going to help you in the long run. Go to a real estate consultant operating in the area where you wish to buy the commercial land. But do not believe whatever they say. Always cross-check the information before disseminating it to other sources. You can ask your friends and relatives in case of any doubts or confusion.

6) Facilities

If you are planning to buy a commercial property for self-use or as your office space, check the available facilities and amenities. Then see if these amenities and facilities match up to your business requirements.

Commercial property rates, unlike residential property, keeps on flickering throughout the financial year. To get the best commercial property in Gurgaon and other cities, you can log on to the website of Ashiana housing. Check out the current property rate in the nearby cities on their website and do a proper analysis of which area will be give you the maximum returns if you buy commercial property there.

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