Investing in commercial property is an option many individuals and companies consider as a way to make some extra money. Any business that has some spare profits it wants to reinvest in assets that will increase in value, aside from putting it in a bank account or investment fund, should consider commercial property.
The commercial property market is made up mainly of shops, warehouses, offices and other retail properties. Purchasing any offers the opportunity to rent out to all sorts of different businesses and there are a number of ways companies can go about investing in commercial property.
The first place most people will go when looking for commercial property investment opportunities is online. There are many websites that have commercial property search functions that are excellent for quickly bringing up options that match your budget and any other requirements.
It is important that your company works out how much they can afford to invest in commercial property, as this will decide whether it is just a small shop or huge office. Be aware of factors that will affect your chances of filling the property with tenants, such as its location, type of building and many others.
In order to get an absolute bargain, commercial property auctions are probably the best bet. Anyone that is selling at an auction definitely wants to get rid of their property and are therefore more likely to be lenient when it comes to price.
There are a number of things you must be aware of when buying at auction. It is often best to hire someone who is familiar with buying at auction or watching a few to guarantee the best deal. Set your budget beforehand and be clear of what your company requires, otherwise you could get caught in the moment and pay over the odds.
Companies with plenty of spare capital may be able to buy certain properties outright. However, most won’t and will benefit from the range of investment funds that are available. There are funds that hold physical property in its portfolio to property companies and developers that can be invested in.
Each of these methods will provide a good return, though it will depend on which one you choose and how much is invested. Buying outright means you will be responsible for the maintenance and upkeep of the property, which can be extra hassle, so other funds can be more appealing.
See also: Commercial property tax relief