Real estate has become big business in the recent past, especially in some parts ofIndialike the city ofMumbai. Anyone and everyone who has the money to invest, is jumping on the real estate bandwagon. If you take a look around at your close friends? circle and family, you will find at least one person who has recently bought or sold and made profits in realty. But buying commercial real estate is nothing like buying a home or any residential property. To buy commercial space that guarantees profitable sale prospects in the future needs a good amount of expertise on the subject. It is not merely about having the capital to make the investment. There are a lot of aspects that need due consideration. For instance, you need to study the real estate market trends to make a good commercial real estate buy.
The first thing to do once you have made up your mind to buy a commercial space is to scrutinize the benefits as well as risks of buying such real estate. The benefits include being able to use the property for your own business and ensuring better returns than opting for a long term lease; having an option of claiming tax depreciation for the property; adding real estate to your investment portfolio; and having an immovable asset to your name which will appreciate in time. On the other hand, there are some risks attached to this type of investment. These may be that the real estate investment does not withstand the changing market trends and fails to appreciate in value even after many years; loss of liquidity in case cash is needed for other business or personal requirements; you may be subject to property fraud in case you are unaware of certain laws or do not hire the right people to ensure that the deal is alright; and while rental income can be handsome for commercial property in BKC or other business hubs of Mumbai, leasing is not a secure form of cash flow.
To make sure your risks are taken care of, it is imperative that you employ a good group of experts to walk you through the entire procedure from looking for a commercial property to moving into the space. Keep in mind that you will need to invest the time and take efforts to find the right candidates to help you. An adequate team should have a lawyer to draw up all the contracts and take care of the legal front, an accountant to discuss your finances and various options to raise the money needed for such a substantial investment, a commercial realtor or good real estate agency to help you zero in on the ideal commercial space in a particular area of your choice, and a personal banker or finance advisor to make loans easily available to you.
Once you have a group of experts you can count on, move onto the real business of finding the perfect property. No real estate expert can stress enough on the importance of location when it comes to property buys. This should be your number one priority. For instance, if you are looking for property in Mumbai, a good option would be to buy commercial property in BKC, which is a major business hub of the city. Also take into account aspects such as the condition of the property, the exact location of the space, how old the building is, the type of amenities provided in the project, which business uses are allowed in the complex, accessibility of the building for clients or suppliers, connectivity to other connectivity hubs, proximity to other business hubs of the city, rate of appreciation in the area, business growth prospects, etc, before deciding on a property.
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