Before You Buy A commercial Property: Five(5) things you must check before estimating your Return On Investment.

[maventiger]

Before buying any commercial property with the aim making high return on investment.
Five (5) things I check to determine if my investment will yield more than the estimated profit are;

1) Gross Rent Per Year
2) General Vacancy Rate
3) Annual Rent Growth
4) Expenses Per Sq/Room/Yr
5) Annual Expense growth

What do you check before buying a commercial property?

 

[WhiteHouse]

return on initial capital investment is a genuinely basic cycle. Cost of materials, cost of work, cost of delivery , cost of protection for example In complete structure ins, work comp protection and so on add the suitable sums, take away from all out deal or charging for administrations delivered. So on the off chance that you have an item that costs 5.00 to make ( 1.00 in materials + 4.00 in labor) and you sell for 10.00 there is a 5.00 benefit less the expense of your activity ( building, utilities, protection , publicizing ++++ any remaining costs) add these costs together at that point amortize this expense throughout a time span …

 

[Alexandoy]

I do not have an experience in buying a commercial real estate property but I remember my father's aunt who bought an old theater in Manila. The estimated earnings would recover the investment in 5 to 10 years. But after a year of operating on a loss they decided to sell the property. Fortunately they earned a profit that they were able to recover money from the losses during the 1 year of operation. It is not easy to make estimates of a commercial property because it depends on the kind of business.

 

[Sincerem]

That's true, one need to examine e all this factor before going on estimating your possible business returns. Let's make sure that we analyse every expenditures about our potential business, before starting a business properly.

 

[giddy]

Councils have strict rules regarding what a block of land can be used for (residential, commercial, industrial). If the block next door could potentially develop into a warehouse or 5 story apartment building it might not be the best option for your quiet retreat away from home. You’ll also want to make sure there’s no plans to build a highway or other infrastructure through your land or the nearby area.

 

[Sariana23]

Before making an investment in the purchase of a commercial property. The first thing that I evaluate is the location and its accessibility, to know the fluidity of the possible clients, the monthly income of each space within the commercial area and the approximate service expenses. With these main data, the decision is made.

 

[Abibatabosede]

Apart from those factors listed above there is another factor to be considered in estimating return.
These other factors are location of the property, the amenities that could entice people to rent the apartment.

 

[Bilal0087]

Before buying any commercial property with the aim making high return on investment.
Five (5) things I check to determine if my investment will yield more than the estimated profit are;

1) Gross Rent Per Year
2) General Vacancy Rate
3) Annual Rent Growth
4) Expenses Per Sq/Room/Yr
5) Annual Expense growth

What do you check before buying a commercial property?

These are very important aspect before buying any land, thanks for sharing with us I want to add one thing that, please make proper paperwork and sign a contract between buyer and seller.
As some lands are occupied by influential political parties or by government, and there may arise conflict at them in future.

 

[GIFTMICHAEL]

Those factors are very important to consider and added to that is the accessibility of the commercial property. To invest in a profitable commercial property location of the business location good road network and electricity are very important to consider.
Annual rent return is very important to estimate in ROI(return on investment) in buying a profitable commercial property.

 

[maventiger]

These are very important aspect before buying any land, thanks for sharing with us I want to add one thing that, please make proper paperwork and sign a contract between buyer and seller.
As some lands are occupied by influential political parties or by government, and there may arise conflict at them in future.

Very essential. That is the more reason you have to contract a good lawyer. My family friend once lose ownership of a landed property for not doing due diligence before making payment. He realized the landed property was an acquisition for a public/ govt hospital facilities.

 

[Chumzy]

The first thing should be, if it is an asset. Like, an economic resource arising from past activities, from which future economic benefits will flow to you. If it is, then ask yourself if it is a good investment, and if it is what you need for the next phase of growth and development, if yes, then you have to decide on how much you are paying for it. Be sure it is not overpriced.

 

[Ojonuyo]

You are right and have said it all. Personally, I do check for the expenses per year. To me this is very important and helps you create statistics on how your returns for the next year would be like. And what investment mistakes to avoid.

 

[Erik4150]

Before investing in a commercial property I'm going to have to check the environment first. The commercial property must be located in an environment with good economic development and infrastructural development.

 

[Nurudeen]

This is just a perfect thing real estate investors should look into. I believe if all this have already been listed in their business plan it will be easy for them to know how to make money with their Investment in the real estate sector.
[automerge]1610134370[/automerge]
This is just a perfect thing real estate investors should look into. I believe if all this have already been listed in their business plan it will be easy for them to know how to make money with their Investment in the real estate sector.

 

[Richard92]

Before you buy commercial properties, something you must check before estimating your return of investment are, the relivant of the properties to your business, you must also look on a long run the benefits it will give to your business before buying, you can also look at the exchange rate and the the income you will get from the properties.

 

[Adebayonle7]

Return on investments can be disturbing and misleading atimes. Many companies advertise higher return on investments and then it changes with time. While having it in mind that you're getting certain amount, the percentage of return on investment might remain the same all along the duration of the investment but due to market changes and the world or business situation in the area, the supposed amount might change at the end of the investment term.

 

[maventiger]

@ Adebayonle7 all that must have been put into consideration and the guarantee on your returns depends on who manages the property and the structure on the property. The right of ownership gives you the assurance of double of not triple return when considering sales of the property while yearly returns on investment might be affected by the factors you make mention of.

 

[Jonaville1]

Nice post and your points are very educative. At least people with little real estate experience like us will pick up some important lessons on what to ensure before embarking on these kinds of investments.

 

[Ojonuyo]

Before investing in a commercial property I'm going to have to check the environment first. The commercial property must be located in an environment with good economic development and infrastructural development.

I agree with you on this, the environment where the property is situated matters a lot and determines how profitable the land or whatever property that was acquired will generate now and in the future,to come. I personally have a taste for properties in urban areas.

 

[shakky2]

check the effectiveness of the property
confirm is the property is from a reliable source and not a scam
do not rush into paying make sure to check all u need to