A Quick Commercial Property Investment Guide

As the residential investment property market becomes fierce, many investors are starting to recognise commercial property as a viable investment option. So, don’t put all your eggs in one basket and consider diversifying your investment portfolio by investing in commercial property.

What is Commercial Property?

The term commercial property (also referred to as commercial real estate, investment or income property) refers to building or land intended to generate a profit, either from capital gain or rental income.

What Type of Property is included in Commercial Real Estate?

Commercial real estate is classified as property assets that are primarily used for business purposes. Commercial real estate is commonly divided into the following categories:

1. Office buildings

2. Industrial property

3. Retail/Restaurant

4. Multifamily housing buildings and

5. Farm/Rural land.

In addition to the above, commercial real estate can include any other non-residential properties, such as:

>> Medical centres

>> Hotels

>> Warehouses

>> Malls and

>> Self-storage developments.

What are the differences between Commercial Property and Residential Property Investments?

When you invest in commercial real estate, you still expect to rent out your property and receive rental income from a tenant as you do when you purchase a residential property investment. However, the major difference between investing in commercial real estate compared to residential property is the Rental Agreement. With commercial real estate, the property is usually leased to a business under a detailed contract for a much longer period (e.g. three, five or ten years).

There are some other important differences such as:

>> The Tenant is usually called a Lessee;

>> Vacancies between tenancies can be longer;

>> Goods and Services Tax applies to commercial real estate (i.e. to the purchase price, rent received and any expenses in relation to the property); and

>> Maintenance costs are usually paid for by the Lessee, which means net rental income tends to be higher.

What is an Annual Return on Investment?

The “annual return on investment” is the amount earned on the investment property. The amount earned, is expressed as a percentage, and it is called the property’s “yield”.

So, if you are considering investing in commercial real estate. You should always ask yourself the following questions:

1. What return on investment will you get?

2. What is the property’s yield?

How is the Yield calculated?

Yield calculations are worked out by dividing the annual rental income on the property by how much the property costs to buy. For example:

Gross Yield = annual rental income (weekly rental income x 52) / property value x 100

This is best illustrated by using the following example:

>> Assuming you buy a property for $950,000; and

>> Rent the property out for $2,000 per week ($104,000 annually).

Your Gross Yield will be 10.9%. It will be calculated in the following way:

($104,000/ $950,000) x 100

If you want to invest in a commercial property, you need to keep in mind all the information mentioned here. You can seek help and guidance from a professionally qualified and expert finance broker, who specialises in obtaining the right funding for your investments.

Truly, having an independent and expert finance broker on your behalf can secure your eligibility for a commercial property loan, not to mention get you the best loan deal that suits your individual needs and objectives.

Find the Ideal Furnished Apartment For Rent

Finding a suitable apartment becomes an essential decision when you are going out alone or with family members to a new location. The best solution is to rent a furnished apartment for a considerable amount of time. Let’s suppose that you are planning to go to Lakeland, there are various furnished apartments which are available on rent for the tourists. Whatever is the location; there are real estate agents that can help you in finding an apartment for rent.

If you are new to the place and have very little information, the best approach is to check referrals online to inquire that the particular apartment meets your requirements or not. The right approach will help you to get an ideal apartment to live in. People have varied requirements and there are chances that one apartment doesn’t have all the amenities but getting maximum benefits in one single apartment with the best view can be the best option to make it a memorable trip.

Consulting with the family relatives and friends who has been to the place can be a very important source to find out the best place to reside in. Sometimes, free advices can be of great help in finding out a decent and affordable apartment which has almost all the amenities you require. If you do not trust them, you can surely check websites on the internet. There are various rental companies that showcase their apartments including virtual tours and videos to help you make the right decision.

Using the above sources will definitely escape you from wandering around various apartments of the specific location. Make the best use of the interest to get the right information and right apartment on rent!

How to Find the Best Commercial Property for Sale

If you want to have a smooth experience in the real estate purchase, then it is highly essential that you look for a professional agent so that you get the finest deal. Nowadays with the growing popularity of various businesses, you will find a lot of commercial property for sale in the market. These commercial real agents will help you in buying or selling the property efficiently. They play a vital role in the success of any business.

In these tough economic times, it is necessary that you reexamine all the aspects so that you get the best deal. Purchasing a commercial property is not at all easy. You require making a sensible and careful decision. However, there are many organizations that overlook this aspect and then at the end, regret with their decision. A reputed agent will help you by providing the commercial property for sale listings. You can dedicate your time in going through the listings provided and then accordingly make an appropriate decision.

It does not really matter in what business you are involved in, you should consider commercial property for sale considerably. These listings help people to select the most suitable size and location for their business. There are commercial estate agents who are experts in their field and help you in taking the right decision. Moreover, they will make sure that you get the best deal from which you will be able to gain profits for your businesses. These professional commercial estate agents play a handy role in determining the price of the property in the open market.

The best part in hiring these commercial agents is that they are mostly aware of latest happenings in the commercial property for sale. They help you in the dealings so that you get what you desire. They will make sure that their property gains the highest profits. Commercial property for sale listings will give you an opportunity to get your dream house. However, it is highly essential that you look out for the agent who will satisfy all your needs. You can check their past work so that you get an idea about what to expect from them.

Once you get the proper agent for your commercial property of sale, the chances of getting good deals are high. However, while searching for the agent you can even think of checking their qualifications. It will help you in taking the right decision of hiring. It is always advisable to select an agent who has good knowledge about the field so that he will help you considerably. Good commercial estate agents will make sure to satisfy their clients considerably. You can even consider touring the web as there are many service providers available online. Some sites offer online forms, which you can fill online thereby saving time. It is necessary to take a careful decision before for make your choice. Simply search for a relevant website and grab the benefits.