So, you’re thinking about investing in commercial property. The only thing stopping you is that nagging voice in the back of your head. But what about the risk? Can I really afford to make a property investment? Fear not, at BB&J Commercial, we would like to think of ourselves as experts in buying, selling, and letting commercial properties. Read ahead, and prepare for your commercial property myths to disappear.
Property investment is a full time job.
Understandably, property management is thought of as time-consuming. The viewing of properties, the screening of tenants, and so on, can be tiring work. It is no surprise that individuals are put off by property investment for this very reason. However, this is just common misconception number one. The beauty of property investment is that property management companies do all the hard stuff. The rental process is made easy when commercial property management companies, like BB&J Commercial, handle all processes. This makes commercial property investment hassle free.
Property investment is risky.
Another misconception is that commercial property investment is risky. There will always be some risk when investing in property due to the nature of the industry. It is always changing. Especially with economic factors such as the pandemic in the last few years. However, with the right research and understanding of the commercial property market, property investment risk will be minimised.
Property investment is expensive.
A common misconception is that property investment is expensive. And this misconception is open to interpretation. Of course, investing in premium real estate will be expensive. There is no way to avoid expense when investing in a retail property in London, for example. However, if you have the resources and finances to do so, it is possible to invest in more realistic commercial real estate. For instance, purchasing a small office space is capable of producing sufficient passive income.
It is best to invest in property located in your neighbourhood or city.
It is common to think that investing in local areas is a safe bet. You know the people, the area, where most businesses operate. However, it is smarter to invest where research shows best. Before investing in commercial property, consider factors such as: affordability, yields, economic growth, infrastructure investment, and population growth. This will ensure that you will be investing where the money is.
So, now we have debunked the myths associated with commercial property investment, you can really consider whether investing in commercial real estate is for you. If you’re interested in the disposal of a commercial property, or renting out a commercial property of your own, get in touch with us today.