Purchasing real estate is both exciting and daunting at the same time. You need to do your research and understand the process, or engage an expert such as a Buyer’s Agent to undertake the due diligence on your behalf.
Each segment of the real estate market has specific information you need to understand before embarking on the journey.
Residential – the 10 things you need to know
Purchasing a new home to live in or as an investment is not as easy as it sounds. There are so many steps along the way as well as pitfalls. It is one of the largest investments that most people make and there are some key things you need to undertake, such as :
- Doing your Research
- Make sure your finance is in place
- Understand why the property is on the market
- Check out the neighbours and surrounding neighbourhood
- Visit the property at different times – is it busy on the weekends or in shade all day.
- Get a building & pest report – if Strata, a strata report
- Check the surrounding zoning
- Check for proposed arterial roads
- Check for environmental hazards
- Get legal advice
All of these steps are important regardless of whether you intend to live in the property or lease it to tenants. Every step of the process takes time and money. Doing your due diligence pays dividends for your investment in residential property.
You may only buy one property in your lifetime and you want to make sure all the right decisions are made. If you are starting or adding to a residential investment portfolio you need that investment to deliver high yield.
Factors to consider before buying Commercial & Industrial property
It is generally much harder to find commercial and industrial tenants if you are purchasing a property to lease than residential tenants and the sector is more exposed to changes in the economy. If you can buy a property with a good tenant on a long term lease that is a good indicator in the commercial & industrial sector.
If you have a good, long term tenant cash flow and rental certainty are a significant benefit, but it is not the only thing you need to consider when purchasing commercial property.
- The state of the economy will affect a commercial & industrial property more than residential
- Location plays a key role in securing and keeping the right tenants
- The type of property – it is needs to be marketable to prospective tenants
- Planned infrastructure has the potential to affect either positively or negatively on how well you attract tenants
- What type of property are you purchasing & how much do you need to spend on top of the purchase
- Parking options
There are many more considerations when Investing in the commercial & industrial property market. It is complex and requires you to understand the implications of your purchase – you need to make sure you do your research, understand your end goals and if possible engage a professional to guide the process, such as Buyer’s Agent who is an expert in the commercial & industrial market.
A Buyer’s Agent works for the buyer and does all the due diligence prior to submitting to you for consideration. They take the worry out of purchasing commercial & industrial real estate as they understand the market and they are working for you, the buyer. As important they understand the pitfalls and potential of this market.
When considering the purchase of residential, commercial or industrial property it makes sense to tap into the experts and let them do the leg work for. This means your investment will deliver results into the future.