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The Dos And Don’ts Of Investing In Commercial Real Estate

July 23 2019

The Dos And Don’ts Of Investing In Commercial Real EstateInvesting in real estate takes a good amount of research and understanding of the realty sector. It takes almost every strategy out there to help work out a way that is profitable and beneficial for the investor. Known to be the most lucrative investments in real estate, commercial property investment is a different ball-game altogether which requires you to pay extra attention to capital gains and cash flow as the risk involved is much larger than any other real estate investment.Thus, it is important to avoid any costly mistakes when it comes to investing in a commercial property. Say, when you think of investing in premium commercial spaces in Kharadi Pune, along with the research of the realty sector in the area, you also need to understand which commercial property will be the most lucrative for you. For example, Imperium Alpha, Kharadi is a great fit because not only is it situated at a great location but it is also built by one of the most reputed real estate brands in Pune and across India - Gera Developments.

So, for those who are not well-versed with the nuances or trends of commercial property investment, here are some dos and don’ts that you should keep in mind.

Let’s take a look at the dos first.

Do Plan Ahead

You must have heard of systematic investment plans floating around but when you buy a commercial property, the money involved is much higher and therefore before forking over the payment, you need to have a plan. After all, it is your hard-earned cash or equity that you are putting up for investment. A structured investment plan will even better equip you to recognise the right property for you when it comes along.

There are many commercial property investors who chalk out a plan after investment which is a big mistake. As an investor you need to focus on the long-term strategy, risk mitigation, capital growth, and above all, cash flow beforehand and not after buying the property.

Do Know Your Property And The Realty Market Inside And Out

Being cautious before investing in a property is harmless. As mentioned before, investing in a commercial property takes more than just having the money for it. You need to do enough research, take time, resources and market connections before you sign the dotted line because once the payment is done, you can never go back. Therefore, understanding the full picture is of the essence.

Now that you know what needs to be done when investing in commercial real estate, let’s take a look at the things that you shouldn’t do or avoid for a profitable investment graph.

Don’t Invest With The Mindset Of Making Money Quickly

There’s no such thing as quick money, especially in commercial real estate. Remember, commercial property investment is only as good as the tenant and lease in place. If you find out that your tenant goes into liquidation within months of signing the contract, you will find yourself in a pool of trouble. Therefore, ensure that the lease you make and the tenant you get are both capable enough to make a solid contract.

Don’t Think You Can Single-Handedly Invest In A Commercial Property

A commercial property was never setup with a single person. It is essential to have a team of hardworking, smart professionals who know the business inside and out. Right from setting a clear strategy with a detailed research behind it to choosing the right property at the right price, and eventually moving on to settlement and property management, your team needs to have your back where you fall short in terms of knowledge.

There is a raft of factors and aspects you need to consider before investing in commercial real estate and these dos and don’ts will definitely assist you in putting the right foot forward. Just know that commercial property investment is a lucrative business with huge rewards only if you know your numbers well. In case investing in a commercial property in Pune is something you seem interested in, Gera’s Imperium Alpha in Kharadi is right up the charts in terms of returns on investment.


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