It is said that buying a commercial property is one of the smartest decisions that can be taken by an investor today. If you have a good budget, then investing in a commercial property will improve your investment portfolio and also provide you with very good returns in the long run.
However, before you make an investment in commercial property, it is important to keep certain important tips in mind. After all, it involves your hard-earned money and the real purpose of the investment is to get a good return on investment. Let’s take a glance at some important points that can help you in making an informed decision:
- It is very important to do a proper research about the location of the commercial property you are interested in. If you invest in the micro market, then your investment might not be very rewarding. If you want to be a smart investor, then before choosing any location for commercial investment, it is important to keep the demand and supply dynamics in mind. If you invest in a good location, then there is a high possibility that you will get smart employees as well as worthy clients who will contribute to your organization positively.
- The next important thing that you need to keep in mind is the type of property that you want to invest in. There are different types of properties available and investing in an office or retail space can be considered as a good investment option. Previously, in most cities, only large spaces were available for investment and so the small investors could not invest in the commercial properties. But, the scenario has completely changed now. These days, most of the reputed property developers have smaller spaces available. So, smaller investors these days have a plethora of investment options.
- Before making an investment in a commercial property, it is important that you keep a proper budget in mind and also check the rental yield. Most people at the time of investment only emphasize on the capital appreciation of the property. But, it is important to check if the rental yield of the property is at least 11–12%. This will help you to get a good cash flow. Apart from making a good profit at the time of selling the property, it is also important to maintain a good cash flow.
- It is essential to check the credentials of the builder at the time of investment. Before making any commercial investment, do check the potential capital appreciation of the property, in the long run, lease terms, and expenses which include the maintenance, property tax as well as insurance.
If you are planning to make an investment in the commercial property, then investing in an office space in Mohali can be considered to be quite a good option. However, before making any investment, it is crucial that you keep the above-mentioned tips in mind. Commercial property investment helps you to build a good investment portfolio and so it is extremely important that proper research is done before taking any decision regarding your investment.