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Have you heard that investing in commercial real estate can be a much more profitable business than investing in residential property? If that’s the case, you heard right.
Australia is the second most popular place in the world for investors to purchase commercial properties and establish headquarters. Thanks to this, the investment options keep rising, and many big cities like Sydney, Melbourne, and Perth are slowly starting to commercialize land.
However, every business has its potential risks, and even more so if we’re talking about big investments. There are certain things you should know before you decide to purchase a commercial property.
If you are interested in investing in commercial real estate take a look at a couple of these tips.
- Do the research and learn all the necessary things
Buying commercial property takes time and planning. It takes research and knowledge. Regardless of whether you are a seasoned commercial real estate expert or a beginner don’t rush the process, take time, and make sure you know all that you need in order to invest in commercial real estate.
If you are a beginner, it will seem like you’re in over your head, but just remember that all this work will pay off.
If you find all this way too complicated, because it is, don’t fret you can always hire a team of experts who will give you a hand and help you understand.
- Consult a team of experts
Before ever diving head-first into buying a commercial real estate, you should hire a team of professionals who know exactly what they are doing and who will be able to give you good advice. This is especially important if you’re a first-time buyer.
You can hire or you can consult with a real estate broker, mortgage broker and accountant, constructor, and especially a solicitor. Each of these experts will be able to help you out and make sure you won’t be making any mistakes that can cost you a lot of money.
Because of all the urbanization and rise in commercial property sales, you can find a great team of experts in any corner of Australia. If you are looking to buy a property anywhere in the Tamworth area, we can recommend you get in touch with solicitors from Tamworth.
Similarly, you should get in touch with a real estate broker who knows the area well – so if you have your eyes set on Tamworth, find an experienced real estate agent in Tamworth.
- Your investment options
You should know that there are at least 5 commercial property types that you can invest in. Some of your investment options include office real estate, healthcare real estate, industrial real estate, retail real estate, and leisure real estate.
For example, industrial real estate includes warehouses and distribution centres. Or leisure real estate includes motels, hotels, even short term rentals.
Depending on the kind of business you’re going for you can accordingly choose the commercial property.
- Choosing the right property
Know that you know all the investment options you have, you can choose the right kind of property that will fit your business. Still, there are more things to consider before you completely settle for a certain property.
When deciding on the right property the main thing to consider is the location. This is highly important and it solely depends on the kind of business you are going for. You may need to be close to costumers or you might need to be able to access the highway – all of this is relevant when choosing the location.
Knowing all the zoning laws and limitations of the area, as well as the building you intend to purchase, can be of great help (this is why having a solicitor is important).
Just like buying a home, buying a commercial property implies purchasing a place that is in good physical condition. This is why you should check the state of the property, to see whether there are any major issues or potential safety or environmental problems.
And finally, think about the possibility of growing your business. Growing a business means having space to expand – so look for properties that can be flexible and allow for your business to grow.
And growth takes time, so while you’re working on expanding your business, you can rent out the space that you’re currently not using.
- Make an offer and close the deal
Once you’ve found the property that ticks all the boxes, you can make an offer. This is where your real estate agent and a solicitor will help your out. Be aware that this may take time and that the seller may not agree to all your terms. It’s important to stick to all your criteria and not change it because someone may have problems with it.
If you don’t purchase that one property, it doesn’t mean that you failed. You have to be persistent and keep looking and making offers.
Investing in commercial real estate can be a wise move. However, every wise move takes a lot of research, knowledge, and practice. So, if you’re looking into purchasing a commercial property make sure you do all of your homework, hire an experienced team of experts, and begin your successful business.