When it comes to any type of property investment there is a lot of room for error – especially when buying commercial property. It can be a tricky and naïve sector, which can catch even the most experienced of investors out. As with life, the simple mistakes are the most common and can often be sourced to a lack of due diligence before the purchase, instead of the actual running or maintenance of the property. Discover how the Rakow Group can help you find the perfect commercial real estate for sale in Westchester NY, suited to your business.
Here are 3 of the most common mistakes to avoid when deciding to invest in commercial property:
Wrong Decisions on Property Choice
This is probably the most common mistake made involving commercial property. A failure to find the property that suits your financial goals as well as your appetite for risk.
At the same time of being a risky and complex market, the opportunity for success is huge. Not to mention the chance of earning greater returns is increased.
The three most common choices for buying a commercial property are income, capital growth and strategic purchase. These three common factors are taking into consideration that you are buying the property for owner-occupation or to facilitate an expansion on site.
Whether you are buying the property for the above reasons, or for any other reason, it is imperative to have your goals clear. You should ensure that you buy an asset that is best suited to you and your business.
The Wrong Location
Location is the key factor that drives demand, when talking about commercial property. This makes it imperative to find the right location and it should always be at the forefront of factors when deciding whether to purchase or not.
You should not fall for tricks of the trade such as flashy fit-outs or impressive improvements, all made short-term. Features such as these disguise a properties real value as well as the poor capital growth involved with substandard locations.
A top tip to always note is that in property investment it´s the land that is valuable. The land will nearly always be appreciating in value, whereas the physical buildings and improvements actually depreciate over time.
Letting Your Emotions Get The Better Of You
There´s a real variety of distractions when deciding to buy commercial property. One of the biggest and most influential distractions is your own views and emotions.
Your emotions can be misleading as the chances are they´re not entirely accurate of what you really need.
When buying a commercial property you should base your decision on a property´s location, historical performance, and yield. You shouldn´t decide to buy a property just because you consider it to be affordable or because “you like it”. Ensure that the property you choose is the correct investment for you. It should also meet your long-term objectives.
If you follow the tips above and don´t fall into the common traps, you will manage your risk and improve your search results both short-term and long-term.
Should you be interested in commercial real estate for sale in Westchester NY, get in touch with Rakow Group. As industry experts in the commercial property sector, they are on hand to offer you invaluable advice. They can also assist you when searching for commercial real estate for sale in Westchester NY, should you choose renting to be a better option for you and your business.
Give them a call today on (914) 422-0100.