Understanding Commercial Property Investment

Times Viewed: 17

1. Addressing Misconceptions

•    Understand common misconceptions about commercial property investing, such as it being too expensive or complex.
•    Recognize that these misconceptions stem from a lack of understanding and familiarity.

2. Commercial vs. Residential Property

•    Acknowledge that residential property is more familiar to most people, making commercial property seem more challenging.
•    Embrace curiosity and openness when exploring commercial property opportunities.

3. Affordability of Commercial Property

•    Realise that commercial property isn’t necessarily too expensive; there are affordable options like car parks and small retail spaces.
•    Explore various inexpensive commercial property opportunities and understand their potential returns.

4. Exploring Different Asset Classes

•    Consider various commercial asset classes such as car parks, retail, industrial, office space, and hospitality.
•    Understand the potential returns and strategies for each asset class.

5. Starting Positions and Strategies

•    Identify suitable starting positions and strategies, such as filling vacancies, strata, and internal conversions.
•    Learn that filling vacancies can be a quick and effective strategy for generating significant returns.

6. Simplifying Complexity

•    Learn to strip back complexity and focus on the simplicity of commercial projects.
•    Understand that many commercial property strategies can be straightforward and manageable.

7. Risk Management

•    Recognize that commercial property can have multiple uses, which helps to de-risk investments.
•    Understand the importance of having multiple income streams to minimise risk.

8. Valuation and Market Understanding

•    Utilise the same valuation processes as professional valuers to understand the current market value and potential of a property.
•    Recognize that having a good understanding of the market and demand can significantly reduce risk.

9. Educational Resources and Support

•    Take advantage of educational resources, deal reviews, and market insights provided by platforms like Property Inc.
•    Use these resources to stay informed about current market opportunities and to make informed investment decisions.

10. Setting Goals and Criteria

•     Set clear investment goals and criteria to streamline the property search process.
•     Communicate these criteria to agents and use them to filter potential investments.