There are no hard and fast rules that can give a 100% guarantee that you’ll be able to earn as much profit as you expect out of an investment in commercial properties. But there are ways in which you can minimize the risk factors involved in the real estate business.
The preliminary requirement that spontaneously decides whether or not you’re investing right is the reputation of the real estate company you choose. Companies like Forum and akin are the most suitable prospects if you want to earn a great return out of the commercial investment. The reasons that make such properties so profitable include the following.
- They are built in the areas that are closer to amenities
- They are built in areas that have widespread public transportation hubs and taxiways running in all directions
- The residential complexes are built in peaceful locations that are still well connected by roads and have access to all amenities
All these reasons increase the sales value of commercial properties. However, there are some other factors aside from these that you must know about to ensure you’re doing the investment right.
- The Mortgage Loan Type
When you’re buying a property on lease for a long time, you have to rely on loans no matter what location the property enjoys and how well connected it is to transportation hubs and other amenities. And if you mismanage the loan, chances are rare that you’ll be able to earn enough profits. Thus, be very careful while applying for the mortgage loan. It is of the following types.
- One that has a fixed rate
- One that offers floating rate according to the profit earned
- One with a zero down payment but a higher interest rate
- Investment Options
You are basically provided with 2 options – investing in new complexes or in existing properties on resale. Both have their own benefits and risks. Analyze your requirement and invest accordingly.
Features To Consider When Buying A New Property On A Lease
- Enquire about the possession date of the under-construction or newly constructed buildings
- They have lesser maintenance changes since they are new
Features To Consider When Buying An Existing Property On A Lease
- Enquire about the maintenance charges – that are usually higher – of existing complexes on resale
- You can get an idea about the risk and success rate by evaluating whether or not the past projects ran successfully