Investing in Commercial Property. These things should be considered by every novice investor.
How we measure success varies from individual to individual.
But let’s look at it through the eyes of a modern person and define it as financial independence. In that case, we see that mantra from numerous people who have achieved it.
It doesn’t matter what your background is, anyone can invest.
The first personality from the world of property business that comes to mind is former US President Donald Trump. However, the tycoon is not the only celebrity to have made his fortune this way.
Whether they are actors, singers or simply celebrities, many of them know that the money that is sitting idle is losing value. Jennifer Aniston also grows her wealth through property investment.
Cliché: property is only for the richest
This has long been untrue. And if you’re reading this article, you already understand it. However, if you are venturing into commercial property for the first time, there are a few things you should consider.
First of all, we distinguish property according to whether it is residential or commercial. Today we will look at how to succeed in the latter category.
A wise person learns from the mistakes of others and if you want to be successful, you should prepare properly. And that’s why..
We start with the most common mistakes
1. Wrong investment
It sounds like a triviality, but the wrong investment can really complicate both your returns and your life. Commercial property is divided into offices, warehouses and shops. Each of these investment opportunities is unique, so you shouldn’t venture into something you don’t understand.
Multi-functional premises, for example, produce high returns but require intensive maintenance and management, which is an immediate deal breaker for most investors. To save yourself the trouble, you must first understand the differences between these types of premises and find the right ones for your needs and expectations.
2. Rushing
If you already know where you want to invest, don’t rush. While it may seem like you’ve found the perfect opportunity, that may not be entirely the case. The premises you are interested in may have hidden defects or drawbacks that you are unaware of.
Before you decide to stuff your finances into them, consult experts about their condition, location and other relevant information. As they say, measure twice, cut once.
3. “I can do it all by myself…”
Don’t burn your fingers on your own ego. Many investors rely on their skills and intuition and refuse to accept the possibility that they could be wrong. This is especially true of beginners who underestimate the agenda and activities related to commercial property investment.
At Amigal Group, we offer full service management of the property you buy from us. Not only do you know what you’re getting into, you also don’t have to worry about what your investment will ask for. We will take care of everything.
And now what?
If you can avoid the typical beginner’s mistakes, then you need to think about what to do next. Once you get your desired premises, it’s very important to know what you’re offering. You need to know not just all the parameters and every advantage of your property, but also its weaknesses so you can anticipate where potential complications may arise.
However, if this is too much for you, it certainly won’t hurt to get a reliable manager who can take on all such duties. You can put your feet up and enjoy the profits.
Who will use the premises…
The next important step is to know your client or the target group you want to offer your premises to. Based on this, you can predict what your premises might lack for a given client or what might attract them.
The name of your lessee is also very important. If Amazon, Google or another big player moves into your premises, you can expect a more stable (and higher) income than from a small or medium-sized business.
If there is a company with a big name in your building, there will also be an increased demand for additional space in that building.
What you should watch out for, however, is co-working. If HUB moves into your premises, you have much less control over who uses your premises and how. Moreover, your property will be at greater risk of damage.
Such a situation would also require a detailed system of incoming and outgoing visitors and a sophisticated reception.
What are my options?
1. Buying
After considering all the steps to avoid and advice to follow, you have a few options.
The first option is to head to property websites and choose the premises you like best. You can then work with its furnishings, interior, lease and tenants.
2. Crowdfunding
The second, popular option for novice investors is to get involved in crowdfunding. This method of collecting money is particularly popular for its charitable purpose. But it also works for project funding. The higher your investment, the higher your profit share.
Crowdfunding investment is a great lesson, but it definitely won’t make you rich.
3. Amigal Group
However, in case you have decided to invest in office premises, Amigal Group offers a large number of investment opportunities.
You can choose office premises from our portfolio.
Once we find a building, we convert it into commercial premises and provide construction and legal services. You can buy office units or entire floors.
You don’t have to be a multimillionaire. Our offer is not in the hundreds of millions of euros, but in units. The premises you choose can also be financed with a mortgage.
And if you’re still unclear about how to start investing, contact us and we’ll explain the process step-by-step.