Locating Affordable Commercial Property

Searching for affordable commercial property is one of the most hectic events that every investor undergoes. Locating affordable commercial property is a task that requires a lot of knowledge of this sector. There are a few things that an investor can use to ease the searching process.

The first way is by browsing through the internet. There are several websites that usually have information about the properties that are on sale. Some of the websites are owned by agents while others are owned by the holders of the item on sale. In most cases, the owners usually sell the items at a lower price as compared to the agents. The agents usually sell at a higher price so as to increase their profit.

The agents also sell their items at varying prices. It is, therefore, advisable for an investor to do a thorough research on about the best agents in the specific area. There are some firms which rate these agents and it is good to go for a well rated brokerage firm which is licensed.

Purchasing of old houses is also one of the ways of reducing the overall cost. An investor can purchase a building at a lower price, and make the necessary adjustments. The investor can then resell the house or use it for his or her own purposes. Websites usually have details of the condition of the house, and it is good to ask a number of queries about the house even before viewing it physically. It is very important to view the item before making the purchase.

Another way that an investor can use to acquire low price items is by purchasing government items. Government items that are on sale are usually priced at a relatively lower price, and this make them be on high demand. In some cases, the items are usually auctioned, and the highest bidder buys the item.

Banks also form another group of property dealers. Banks usually sell the collateral of debtors who are not in a position to repay their debts. Often this property is sold at a lower price, and in most cases, it is investors who purchase such items, and they later resell the property at a higher price.

Acquiring of these items also requires a good network with investors in this field. Networking helps by keeping the members updated on any transactions that are taking place. One way of joining such a network is by joining investment groups. There are many investment groups online which have a lot of information.

Acquisition of cheap property is also very tricky. The reason is that this item may be having a number of legal issues. Therefore, the buyer should do some investigation about the history of that property. This information can be acquired from the tax department or from the previous occupant. The buyer should preferably get information from these two sources if it is available. These are some of the crucial points that an investor should look into while locating affordable commercial property.

How to Buy a Commercial Property?

When purchasing commercial property, you must take into consideration a number of things. No matter how large or small a business you run, you need to be focused on location from the beginning till the end of your search. Remember, there is no one-stop shop that can help you with buying this property. You have to create a team with your most reliable staff members and begin your search.

In most cases, business owners cannot decide whether to buy a commercial property or lease it. Some rules of looking for this type of real estate are same as looking for apartments in Kolkata. Here are a few things that you need to keep in mind.

Location

As mentioned before, this is the foremost factor. If you want your business premises to be at a location that your customers, partners as well as employees can reach easily, you will have to look for a prime location in the city. However, based on the type of your business, your commercial property should ideally be situated at a place near the railway station, the highway or the coast.

Present Condition

If it’s a resale property, pay attention to its condition, how it was used, when it was built and the damage repair that you need to undertake. If it looks like it needs a lot of repair, the best advice would be to not take it, unless it sits at a prime location.

Use

Evaluate how well the commercial propertycan be used. Will it allow enough space for you to perform every operation smoothly? If the answer is ‘yes’, consider the property.

Limitations

Does the property come with construction or remodeling limitations in the interior/exterior? You may need to change the look and feel of the property to make it more aligned with your business. Make sure it allows you to do so.

Access

Just like apartments in Kolkatahave to be accessible so that owners and workers can get there easily, a business real estate also needs to be as accessible as possible. This factor is intertwined with the location factor.

Parking

Car parking facility is extremely important for your customers, clients, business partners, staff and yourself. Not everyone may own a car, but a car park ensures that those who do, need not worry about where to keep their car when they go about their businesses.

Scopes for Expansion

You naturally want your business to grow. But in order to grow, your business needs extra space. Ask yourself, will the property be able to accommodate new departments, new personnel etc.?

After you’ve gone through all these points, comes the factor of finance. Consult an expert to learn whether you should go for a lease or purchase. We are not talking about small apartments in Kolkata. This a commercial property we are discussing and you must find out all you can before purchasing it. After all, your business will depend on it. So be careful and talk to your accountant, lawyer, mortgage broker and commercial broker.

Investment in Commercial Property for Assured Return

The basic paradigm of investing states that risk and returns are directly proportional and real estate is no different story. A big question in every investor’s mind is whether he/she should invest in commercial property for assured returns or not. Everywhere in the world of real estate, there are lucrative offers that encourage the investor to invest a sum of 25 lacs or above and offer returns of about 10-12%. The offers are made during the construction or the pre-launch period by the builders. So what are the pros and cons? We take a closer look.

Why builders offer assured return

The major advantage that assured return projects offer builders is sales. This is the major factor that drives this marketing scheme. If the commercial spaces are sold while the project is still under construction, then it relieves a lot of pressure from the shoulders of the builder. And through these projects, the builders often establish a leasing company as well, which is a subsidiary to their main real estate company. The leasing company manages the leases to be given to commercial investors. This adds to the overall income of the builder. The builder also minimizes the risk of not renting out the property on time or at the expected returns because now it is actually the investors’ money at stake. Another major advantage for them is that they have to pay only 10-12% interest (return) to the investors, whereas if they would’ve applied for a bank loan then the interest would have been stratospherically high, in the range of 15-20%.

How it helps investors

Many a time, the investor may get the property at a much lower price than they would have expected or afforded. Thinking of acquiring a commercial property in about 25 lacs in Delhi NCR may seem like a joke but assured return projects offer the same oftentimes. If the investment made is hefty, then so will be the returns and in that case it could offer a stable source of monthly income to the investor. Most importantly, the headache of the investor ends there and the buck stops at the Leasing Office to find a lessee for which the investor holds the share.

The bottom-line

Assured return is a good form of anyone who has an appetite for risk and has patience as one of their key characteristics. The investor should have knowledge of the real estate industry in order to avoid builders who charge overtly for a particular project. Patience is necessary because the returns usually start flooding in after the investment has been made completely. The returns may also depend on a few factors upon which the builder and investor have no control over so that might also require a little patience.