Buying a property can be a great investment for you. However, just like in any form of investment, commercial real estate investment mistakes can prevent achieving your goals. We bring you the list of common commercial real estate investment pitfalls you must avoid.
One of the most common commercial real estate investment challenges is mentioning one’s own name. A business entity’s name should be mentioned instead of one’s own name. Since commercial properties are high on liability, it is better to avoid being held responsible.
One of the other most common commercial real estate investment mistakes is not providing for the expansion. Running out of space means lower productivity which can force a business to move and prove costly for it.
This is a must to avoid commercial real estate investment challenges like environmental issues. Opt for buying a commercial real estate Noida property when the business is new.
Don’t opt for a commercial real estate investment when the business is not ready for financial investment. Rather than investing in a building, it is better to invest in brick and mortar.
Avoiding this commercial real estate investment mistake is a must. Just because a building seems ready, it may not be until all the licenses are ready. Remember to take all such licenses.
Be thorough with zoning ordinances and current land use in regard to the intended use of the property. Failure to do so may result in violations that may not help with the intended use of the property.
Commercial real estate investment pitfalls of investing in a property that is hard to liquidate
Can be plenty. Why? Circumstances change and financial conditions can also change considerably. So, invest in properties that can be readily liquidated.
Analyzing the neighborhood and traffic conditions is essential along with facilities. One of the greatest commercial real estate investment challenges is choosing a good location.
Pertinent to know your rights vs As-Is Clause. Though the seller may not be required to disclose everything, a buyer needs to know the nuances and can take legal recourse if certain issues about the property haven’t been disclosed.
Another commercial real estate investment mistake is relying on just public listing information as the only source of information. Since it limits the information, it is better to find a knowledgeable broker who knows information that is not listed publicly.
Time and shopping for commercial real estate loans need to be planned ahead of time for providing for exigencies. Also, don’t let emotions rule the decisions as that can prove costly.
Think ahead of time and not look for a short-term stay. It is also important to align business strategy with real estate decisions. Overlooking upfront and ongoing costs can be one of the costliest commercial real estate investment pitfalls.
Where you found the best real estate companies in India?