Things to consider before buying a commercial property
Did you ever feel that you should be looking more at investments in commercial property in the saturated residential property market? If this is in your mind, you are joining the new wave of investors who wants to diversify their investment portfolio within the unstable economy.
The obvious question now is, how big exactly is the commercial property market? Generally speaking, commercial property investment is not as straightforward as the residential market. Before buying a commercial property, there are a number of things to be considered. They are as follows:
Location is an important factor when it comes to investment in commercial properties. It may be true that a lot of people are looking at creating their own business, and it will not be too difficult to find someone to rent your property to start their business; however, if the location is not right, the chances for renting out is slim.
Sometimes, the success of commercial properties also comes with the features included in the project itself. For example, some properties may be managed by the developer, with facilities such as Wi-Fi zone, making the commercial blocks into event venues or even being selective about the types of business and brand name to qualify as tenants.
Although people are talking about market price, as an investor, you should take into consideration the price and the size of the property. It is important to note that your property lease are usually based on long term contracts, and for some cases may go up to 10 years instead of the normal renewable 1 or 2 years for residential properties. Also, you need to remember that returns from residential property come from the increase in capital value, but for commercial properties, it comes from income.
If you are in Crawley or Horsham and looking for commercial property or offices to rent, you should be considering KBA. We have over 20 years of experience in the business and just a phone call away for all property-related queries and solutions.