It’s time to start making some big money, you think to yourself. You’ve heard from quite a few sources now that property investment is the answer. However, as residential property is taking a downturn in the market you have turned your attention to the commercial property market instead. A wise choice because it will give you regular income and yields of 8-10% as opposed to the 2-3% currently yielded by residential properties.
Weary of risk?
This is not to say that the higher income on your investment comes without risk. As you will be investing out more money than you would on a residential property, you need to ensure that you invest at the least critical risk time and this is obviously when the building is already constructed and has occupying tenants. However, if you’re feeling risky frisky, the highest returns will be reaped when investing at the onset of construction because you will earn the highest capital – just remember that nothing will happen until you actually get tenants into your space!
Where to invest
Deciding on the location of your investment is paramount. You want to ensure that you invest in an area that is economically stimulated and still attracting growth. It is certainly a more agreeable prospect to be the owner of building that is well connected by quality roads, rail and highways. The building should reflect your intended success and be of a high quality, not crumbling at the seams in the dodgy part of town. Furthermore, you are not limited to where you would like to invest your money. Just because you live in one area doesn’t mean you have to invest in that area. Spread your wings – you don’t even have to be in the same country. In fact, there are business websites who will help you invest as far afield in exotic locations such as Malta so exercise your vision widely.
How will you make money?
The simplest way of making money is to buy the property and then rent out its space thus generating an income for you. Unlike with residential property, the tenants that one finds in commercial real estate tend to be far more reliable, as it’s their place of business and therefore risk factors of non-payment and damage tend to be far less. However, you need to attract quality tenants to your space and make them aware that you exist.
Optimizing your space for maximum potential letting is a key strategy to ensure that you get the most rental income from your investment. You don’t want to be too greedy and cram tenants into uncomfortable and unworkable conditions, so think carefully and allocate space per office generously, but not to the point of wastage.
Attract more tenants by offering additional services such as parking, waste-removal and recycling. Furthermore, because you own the building, it’s a great idea to offer tenants advertising space on its structure. This works out cheaper for them and is an extra income avenue for you.
“Your own advertising is just as crucial, and one of the best ways to make yourself know is to have a great website,??? suggests Jason from maltasothebysrealty – offices. They ensure that your web presence provides the best experience to your visitors regardless of the device they are using. The easier and more attractive it is to visitors accessing your website, the easier and quicker you’ll attract quality tenants.
Now that you have the bigger picture, take your money and go and invest it. Commercial Property tycoon here we come?