Last time, we related a number of tips to help budding commercial property investors warm to their tasks, but of course ensuring success in your investment is just as much about avoiding mistakes as well. When it comes to commercial property, there are a number of pitfalls which can catch people off guard, so here are a few traps that you should definitely be looking to avoid when investing:
Failing to Have a Plan
The most basic mistake with regards to commercial property is definitely failing to have a plan or a long term vision in place. Simply buying a property on a whim is not recommended. You may think that this is too obvious to even mention, but you’d be amazed at how many people are caught out by this simple error. This is especially important if you’re going to be using a loan, as lenders don’t want to see you without a concrete plan in place.
Not Having Enough Cash
Speaking of lenders, don’t rely on a loan to start off a property investment bid. Most lenders will only offer you their support if you have a substantial amount of cash to put into a project yourself, so it’s very risky to bank upon a loan to kickstart a career in commercial property investment. Sure, don’t avoid utilising such services entirely – most people use them very successfully, after all – but it’s not wise to rely on them completely.
Taking Too Long
Because the commercial property market is constantly in flux, prices are shifting and changing on a consistent basis. This means that it can be very easy to hold out on making a purchase in the hope that ‘a better deal’ will be just around the corner. Whilst you don’t want to jump in without planning, nor do you want to hold off for too long. You may well get a better deal in some cases, but in many more you’ll let golden opportunities pass you by.
Choosing the Wrong Property
Commercial property can mean many different types of premises, from offices to retail buildings and even more, and you need to be sure that you don’t plump for something that isn’t going to work for you. As we mentioned last time, ensure that any property is going to fulfil all of the requirements of your tenants as well; you’re really asking for trouble if you don’t invest in somewhere that is highly attractive to your target market.
Of course, there’s a lot more that could be said in this area, and if you’re in need of advice then don’t hesitate to get in touch with the experts at Prideview Properties. Our commercial property consultants in London have many years of experience, so you can rely on us to find you the very best deals. To find out more, contact us now by calling 0208 863 8680 or emailing firstname.lastname@example.org