Investing in commercial property has some quirks when compared to buying residential. For one thing, you need to consider the business tenants you'll be targeting, rather than people who will live in the property. It takes a different approach and there are a variety of factors you may not have considered.
Your first commercial property is a big step on the investment ladder, but it could start a whole portfolio. Before you buy a commercial property on the Gold Coast, take into account the following information and discuss all of your options with a specialist property agent from Ray White Commercial Gold Coast.
Even a seasoned residential property investor can find this part of the process difficult. You must think like a business manager in a certain sector and figure out exactly what they look for in a commercial space. If they're in the retail game, security and foot traffic are the keys. Without adequate security, their goods are at risk, and if there are no people regularly in the area, there's a much lower chance of customers walking into the store.
For an office building, it must be easy for employees to get to. Infrastructure like public transport, motorways or parking is important. Particularly with parking, it could be an extra money-maker if you lease parking spaces individually.
The perfect property isn't just going to fall into your lap, but you can discuss your requirements with an agent for help narrowing down your options on the market right now.
Much like investing in residential property, sometimes the right commercial building comes up at the wrong time. It could be that perfect retail space you've been looking for over the last few months, but you have to wait for your bank to accept your application for a loan.
Don't get caught in this trap – apply for a loan early and know exactly what your price ceiling is. That way, when the right property comes around, all you have to do is lodge a bid.
Commercial properties can be significantly more expensive than a house, like if you buy an office building or entire shopping centre. However, spaces like warehouses or individual shops can be much more affordable. Do your market research about what type of property is the most appropriate first buy for your commercial portfolio and move onto the bigger things later.
For help finding your first commercial property investment in southeast Queensland, get in touch with Ray White Commercial Gold Coast today.