Buying Commercial Property Investment for First Timers

When buying commercial property investment, first timers often feel intimidated. This goes without question that real estate acquisitions regardless of type is not as easy as pie. Of course, first timers can’t help but feel anxiety at some point. Besides, this is a big ticket investment that costs quite the significant amount of cash. To help you feel more confident about your upcoming transaction, we’ve rounded up some tips to help you get along.

Get your financing on track.

It is important to make sure that you have the cash to backup your purchase otherwise all efforts would be futile. There are many options available out there depending on your needs, the amount you will require, your limits, the type of asset and all the other factors.

Make a budget and stick to it.

There is much expenditure related to the buying of commercial property. You will have to spend before, during and after the acquisition. After all, you have pre-purchase costs, the actual sales price and the ongoing costs after. This makes it important that you prepare a budget to better allocate your funds to ensure that no wastage and shortage will occur.

Location and foot traffic are a must.

Because we are talking about commercial assets, it is necessary that they are aptly situated. This means that the area has to be conveniently situated so that going to and from it would be a breeze. You wouldn’t want customers to feel burdened just to get to the place, would you? Also, foot traffic is a must. This refers to the number of pedestrians that come across and are exposed to the area, the brand, the company and its products regardless if they are customers or not and regardless if they buy or not. The higher the foot traffic the better.

commercial-property-investmentNeeds must be met.

Buying commercial property is something that has to be tailored to every investor. This is not a one-size fits all procedure. Different individuals and organizations buy commercial space for different functions. Even if the common goal is for it to be used for business purposes, there are still things that will only apply to one and not the other. This makes it important for every buyer to fully assess their needs. This way, you will be better accustomed to the features and requirements that you will need on the asset and you can better lock down on your target.

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What Makes In Demand Residential Investments for Sale

residential-investmentWe’re no aliens to residential investments for sale. We often see ads of these everywhere from print to digital to word of mouth. In fact, we may have just bought one ourselves.

In the same manner, we are accustomed to observing how some properties tend to sell faster than the others and how certain assets have more buyers rallying for them while others have few or even barely none. Whys is this so? Simply put, not all residential investments are made the same. They vary and have a combination of different factors and features making no two properties completely alike.

And now we all wonder. What makes an in demand residential investment for sale. What sets them apart from the rest? Let’s find out together as the experts answer our questions.

They are conveniently located. The proximity of the unit from significant structures and establishments is necessary to deem it as a prime asset. The closer it is to offices, schools, groceries, main transportation areas and the like makes it convenient location-wise.

They are safe and secure. This pertains not only to the neighborhood in which the property is situated but also to its structural aspects as well. Will it last long? Are there any hazards? Is it accident prone?

They appreciate over time. Depreciation is a given to any property. However, appreciation is a thing too. Good investments are those that will grow in value as time goes by. They are those that will appreciate with a few renovations and upgrades. Location plays a really huge part in this department.

They are spacious. We all hate cramped spaces. We want someplace that will allow movement and work to happen. Even smaller homes can have big spaces with the right architecture and interior styling.

They are bright and illuminated. A dark and dim residential unit looks sad, forlorn and sometimes even creepy. This is why those that are illuminated in such a way that allows for massive amounts of natural light to seep in are a huge hit to investors and buyers everywhere.

They require little maintenance. Ongoing costs are a burden. They refer to repairs and maintenance expenses that are to be regularly spent throughout the useful life of the property to keep them functional. Choose residential investments for sale that have little and very affordable ongoing costs to save you from all the headache later.

Avoiding the Common Mistakes at Property Auctions Online

property-auctions-onlineProperty auctions as their name suggests is a public sale characterized by awarding the asset for sale to the highest bidder. It is a form of competitive open cry bidding and participants are expected to be prepared beyond relief. However, many participating investors and buyers still find themselves slipping into the common mistakes they vow not to fall trap to. Here is a list of them.

  • Failure to come up with a spending limit…

When you step into the auction, you have to be prepared and this includes having decided on your budget limit. You cannot go and decide on it while the sale is being done. Doing so puts you off and can trigger you to spend more than you should have.

  • Not having any plan at all…

You need to have a game plan. This includes things such as your budget, spending limit, asset qualification list, research, survey results and so one and so forth. Walking into it without a plan is like falling into a trap on your own accord.

  • Wrong timing of fund availability…

When you participate at a property auction, you are likely to be asked to provide a security deposit. Even if such is not required, you will still have to pay up for certain upfront costs and arrange immediate payment plans on the asset after being awarded as the winning bidder. Your financial resources must be at the ready. They have to be available before and not after the auction proper.

  • Absence of any form of research…

You have to go out there and visit the property and have it surveyed by a professional before you close on it during the sale. You have to make sure that the asset you have set your eyes on is worth it. You need to validate certain facts such as ownership, market value, useful life, structural integrity and ongoing costs among others.

  • Lack of confidence…

You cannot let others feel your hesitation and doubt. In fact you shouldn’t have any. If you’ve prepared, planned and researched then there’s nothing to worry or fear about. You need to be confident when bidding. That’s how you win.

  • Believing in what everyone else says…

Do not immediately take what others say as a fact. This is why you plan and research in the first place. Other participants may want to force out info regarding your limit spending. Sellers can sugarcoat and exaggerate too. Be smart and don’t trust easily. Validate first.

Avoid these common mistakes at property auctions online and you’re sure to win it like a pro!

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Beware of UK Property Investment Renovation Mistakes

UK property investmentRenovating your UK property investment is always for the better, right? Wrong! Not only improvements and upgrades to an asset bring in value, add to its functionality or improve upon its aesthetic appeal. There are occasions where owners and investors commit blunders during a renovation and we took it upon ourselves to list down what these are to warn you.

Mistake # 1: Going for the cheapest contractors

There’s nothing wrong about wanting to save up on costs but be sure that you do not sacrifice quality in exchange. The best thing for you to do is to search for the best ones in town and get a quote from your top three. The quote should be in written format and details all there is to do about the work. Some contractors unfortunately hand you a cheap quote just to get the job and then make use of substandard materials to lower their expenses. That’s not what you want, is it?

Mistake # 2: Not validating your measurements

Before you break a wall, change up your cabinet doors, buy a new countertop or anything else for that matter, be sure that you’ve got your measurements right first. You do not want to purchase new installations and materials only to find out that they do not fit.

Mistake # 3: A poorly made budget

Property investment renovations come with costs and by that, you have to make sure that you not only have adequate resources but you also have the wise allocation of it. Renovations come with various expenses. More often than not, there are even surprise costs that you may have not considered initially. This makes it important to set up a well made budget and to add a miscellaneous spot for those emergency needs.

Mistake # 4: Foregoing what seems invisible

Wires and pipes are examples of these. Many investors fail to realize that renovations should not merely be done on items that are visually pleasing or are blatantly visible. If you want to maintain the asst then you need to take care of its integral and inner structures and systems too.

Mistake # 5: Failure to seek professional advice

Before you being any amount of property investment renovation, see to it that you consult it to an expert like, first. There will be cases where what seems to be a good project turns out to be futile after all. For example, does adding a second floor really add value to the asset or will it be more of a cost burden than a value raiser?

Signs of a Quality Commercial Property for Sale

commercial-property-for-saleWhen looking for a commercial property for sale, buyers need to be smart. You have to know how to shop around. You cannot waste your time looking at the wrong options. Remember that time is of the essence too and as the clock ticks away, the good choices are being taken or if not, their prices are rising by the hour. So how exactly do you find one? Read up on the following list of signs to know how!

  • Easy Customization – When searching for any commercial space, one of the things you will have to look at is whether or not it fits the features needed for the purpose by which you are buying it. But we all know that it would be pretty impossible to get one exactly the way you imagined it. This makes it important that you get one that is easy to customize. Plus given the fact that you might have to repurpose and change it up once in a while, this shall make things easier and more cost efficient.
  • Strategic Location – You want heavy foot traffic to cater to a wider market. Convenience and easy access will also play a huge role in keeping regulars and patrons coming back for more.
  • Ample Space – You cannot work well with cramped spaces. Not only does it look unprofessional but it hampers movement and with it productivity.
  • Available Parking – We all hate it when a shop doesn’t have parking space. It’s a huge hassle and most people would drive past instead. That means customers lost and nobody wants that for sure.
  • Ergonomic – The property must have enough space to allow movement and such must be accompanied by safety and ease of use. This is not only for the good of employees but for clients as well.
  • Cost Efficient – Get a commercial property that allows you to cut on costs. For example, one that allows lots of natural light to come in can help you cut on the lighting costs during the day.
  • Useful Life – The longer its useful life, the longer it remains functional and useful to you. Find out about this with the help of a property surveyor and examiner. Don’t rely simply on what the seller tells you.
  • Ongoing Costs – A quality commercial property for sale has low and minimal ongoing costs. These maintenance and repairs expenses will have a huge impact on your spending later on. You want them as low as possible.

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