With residential properties becoming less lucrative, many investors are turning towards investing in commercial investment, as their preferred alternative. In this blog, we provide you with five top tips on what to keep on priority if you are looking to invest in best commercial property in Noida.
The familiar aphorism of ‘Location, Location, and Location’ echoes even more, when you are looking at purchasing a commercial property. It is important for you to have a good understanding of the location of the property. For that you need to consider – would the area support your business type or the types of tenants that you might get? Is it at a good location that already has high leasing stock? Maybe it is at a location that is still developing, where you can find good property at cheaper rates and can have a multitude of tenants interested in your property? What are the neighboring buildings and who owns them? A few other issues to see through are – roading, traffic and zoning of the area. What are the future construction and development plan of the area and how will it bring a difference to your investment?
Similar to any other property purchase, a pre-purchase assessment by a qualified professional who is an expert in his field is imperative. For investing in commercial property, there are a few other things to consider as well-
a) Strength or the structural integrity of the building
b) Asbestos – A health and safety requirement, as they are the known carcinogen and are dangerous for the in-mates. It is extremely important to get information on the use of asbestos in the construction material.
c) Repairs owing to Natural disasters
a) Owner occupier – If you will be the owner-occupier of the whole or part of the purchased property, then it is important to ensure that the property purchased will meet the future business needs.
b) Tenants – If for now you want to rent the property, what quality of tenants are available? It is important to research each tenant and the business needs.
Another issue with both owner and tenant occupiers is the car parking. If the business is customer centric, then it is obvious that more parking space will be needed. It is wise to ascertain in a multi-occupied property, how is the parking space allocated and how efficiently the arrangement is working?
Commercial property come with different forms of ownership – freehold, leasehold and Power of Attorney. Under ‘Freehold’ ownership, the property and possession are with the owner of the property. In the case of leasehold property, the owner of the property transfers the right over the property and its possession for a specified period of time and the Owner is called the Lessor and the other party, the Lessee. The ownership and possession are automatically transferred to the Lessor on expiry of the lease period, which is generally 99 years. Under Power of Attorney, the owner of the property appoints another party to deal with the property, normally for sale of the property, while the ownership and possession is retained by the owner.
Ask yourself a question – will you be managing your investment or will you employ someone to manage your most precious investment? Multi-occupied commercial properties need a lot of time, experience and expertise for their management. However, if you are investing in a project that is ready to take the management and the maintenance headache, nothing is more fruitful than that. Such projects employ highly experienced and efficient property managers for their esteem investors, so they remain tension free and do what they are best at – managing their business and earn profits.
Investing in a commercial property is all about doing the right kind of homework before making a purchase. The more the homework (obviously in the right direction), the more likely it is that your commercial property investment will be successful. It does not matter whether the investment is big or small, putting right efforts and resources is imperative for a fruitful and trouble-free investment in a commercial property.