Investing in the real estate market is an effective investment for a long time already. With the development of cities, business expansion, increasing popularity of IT products, the demand for commercial objects increases.
Real estate as an effective investment: what you need to know when selecting an object
Commercial real estate brings a good income, and its size depends on the location of the object. The premises, which are part of the infrastructure of new residential complexes, are interesting for investors. They are always in demand and can be rented out or sold at a higher price. Such variants of earning money on real estate are very popular. Less often they buy objects for their own use – for office or store.
Developers, at the stage of erection of a house, think over the layout of commercial premises, which is much more convenient than to convert apartments on the first floors in old buildings. An effective investment is the purchase of an object for rent. A square meter in such a premise is more expensive than at the office real estate market, also due to its good location and thoughtfulness of the area for its practical use. The payback period here is quite fast. However, such objects have their disadvantages. In commercial premises, tenants change frequently, the downtime of the object, the change of its purpose can worsen profitability, and the payback will be delayed. In the option of using the space for offices tenants are focused on the long term. For this purpose, the parties enter into an agreement between 1 and 19 years. In case of purchase of office real estate the object pays off within 8-10 years, in case of trade real estate it is necessary to wait for the return of funds for 5-9 years.
Investing in commercial objects will bring high returns, but it is important to be careful in selecting the object. Statistics show that ill-considered choice of premises causes closure of 25-50% of business projects.
Therefore, it is necessary to carefully study the commercial real estate market, analyze various offers and options. Location is an important factor, but it should be considered in conjunction with the study of the target audience. Infrastructure and availability of competitors also play a role.
A successful option will be the purchase of a commercial facility in a new building with all the necessary communications, well-thought-out planning and modern video surveillance systems. Often, developers make two entrances for such premises – from the street side and from the yard of the house. Here the tenant can count on a large flow of people, good attendance and demand.
The owner of commercial real estate in a new building must create the necessary conditions for customers. Take care of convenient entry and parking, depending on the use of space, to equip it. Some nuances of the layout can be discussed with the developer, if the object is purchased at the stage of construction of the house.