Real Estate Investment Tips for 2015 – Commercial Properties
The real estate sector is basically a local business, in a way. It depends on some key aspects such as the development of the area, the infrastructure available in the vicinity, the overall future prospects of the city, and the economic situation of the country.
To a great extent, experts are able to weigh in such factors and some others, to forecast the growth and direction of the real estate sector in the particular city or country. However, there are some common denominators that help specialists within the sector and industry analysts accurately forecast the global market for commercial as well as residential properties.
According to Cushman & Wakefield, a global real estate solutions company established in many countries around the world, “While there will be variations within and between regions, it is widely anticipated that the global office market will stabilize in this year with slow growth being the norm in early 2015. While some markets and regions will experience increased activity later in the year, noteworthy growth is not expected in majority of locations until 2015 and beyond.”
Most commercial real estate development companies depend greatly on the experts to detect market trends and future prospects, even though most company heads bank on their years of experience as well. For an inexperienced investor however things can be quite different. For the most part, global real estate trends or developments and growth are irrelevant. All he cares about is investing in a space that ensures appreciation in value and worth over the years. Here are a few tips for first-time commercial property investors to do just this.
You don’t have industry experts to tell you where to invest. This means that you’ll have to do your homework on the matter. Buy a few property magazines, browse online for tips and ask friends for valuable suggestions. The first decision to make is whether you want to buy an industrial space or a retail property. These days many investors prefer buying undeveloped land especially in small towns and outskirts to big cities, where land is relatively cheap.
While doing this may be profitable since you can design the property as per your needs, and also sell or rent the developed property to earn a substantial sum, developing land requires huge spending, efforts and time. On the other hand, buying developed commercial premises is much simpler. Once you have made up your mind about what to buy and know the basics about this type of investment and what it entails, you can move on to looking at potential properties.
Many investors become impatient with the process of searching for the right investment space and in turn take the wrong decision. Be tolerant and patient while looking for the property. There are plenty of options available, regardless of your country and city of residence. Your goal should be to zero in on a property that shows the greatest potential in terms of appreciation. While doing this also keep factors like resale, rental income, profitability, flexibility of the space, target clientèle for lease, etc. at the back of your mind.
A good investor always knows the purpose of the investment. This translates into thinking about what the property is going to be used for, whether it will be convenient for the type of business or office you have in mind, etc. If you are one to play it safe, invest in a commercial space that is guaranteed to appreciate. For example, most commercial real estate development companies invest in large projects that set the trend for commercial projects in the area. Investing in such projects may be the way to go.
Bio – Maria L. Stevens is a freelance writer that often writes on topics related to the real estate sector. Her articles about the top commercial real estate development companies of the world are regarded highly informative by real estate professionals. Maria also enjoys writing about her travels to destinations in Asia and Europe. Also she writes for http://www.thewadhwagroup.com/