Buying a property would always require some risk, especially if you plan to use it for commercial purposes. Of course, this would mean that you’d have more responsibilities to fulfill. Along with that, you’d also need to consider the fact that there’s an ongoing COVID-19 pandemic.
Let’s say a shopping mall is your end goal. Compared to residential ones, a single building would already have many floors and establishments. And at times like these, most individuals choose to avoid going outdoors as much as possible. So, would such a property really be worth it? This is why you should take more time in doing your research, setting your budget, and more.
Study the Market
There are many opportunities in the world of real estate. No matter what type of property you want to buy or sell, you’re sure to earn a profit. However, nowadays, it’ll be more ideal if you take your time in studying the market. Ever since the Covid-19 pandemic hit, the needs and wants of the public shifted.
The Demand Shifted
Of course, individuals are now focusing more on providing for their family’s basic needs, from groceries, utilities, medicine, and so on. So, entrepreneurs who owned businesses, such as nail and hair salons, clothing shops, and the like, were all badly affected. As a result, they either chose to pause their operations or cease it entirely.
In a way, this also affected the real estate industry. Of course, if businesses decide to close down, there would be no one to pay the rental fees.
Rental Properties Are on the Rise
But, along with all these changes, you may start to notice an advantage. Since most people are now staying at home, the demand for rental properties increased. So, if you’re planning on investing in commercial real estate, then you might want to consider this as one of your options.
Location will always be one of the most important factors in decision-making. Of course, you’d want the property to be visible to the public as much as possible. Along with that, accessibility could also help you convince potential tenants to move in. Over time, this can help you increase the property’s value if you decide to put it up for sale.
If you plan to buy an existing building, you’d need to evaluate its current condition as well. Even if it’s located in one of the most populated areas in, let’s say, Jacksonville, Florida, it would still be too much of a risk if you don’t know what it went through.
So, you should set a meeting with the previous owner. You can ask what they used the building for, whether they built it or not if there were any serious damages, and so on. There might be an underlying problem that could cost you a huge amount of money in the long run. This is why you also need to have the right professionals to back you up. It’ll be best to hire a CPA, a mortgage broker, a tax attorney, and more.
Before making an offer, of course, you’d also need to secure a loan. Afterward, you can then work on the other details and paperwork. But, it won’t end there. Since it’s an existing building, you may want to make some changes within the establishment.
Hygiene is one of the biggest concerns of individuals nowadays. So, you can start with the restrooms. Since it’s a common area, you should ensure that the toilets and sinks are always clean. If the bathroom partitions are already broken, you can have those replaced as well.
It would help if you also looked into the safety of the building itself. There may be issues when it comes to the stairs or elevators. Since people use these daily, it’s ideal that you contact a professional every once in a while to check their condition.
You Need to Keep Up with Change
Nowadays, the needs and wants of the market continue to change. So, it would be best if you always took the time to study your audience. Of course, as an entrepreneur, it’s your job to keep up. Due to the ongoing pandemic, there’s now a noticeable rise in demand for living spaces.
So, you can capitalize on the opportunity by looking for rental properties. However, you need to remember that this would be a long-term investment. So, it’s ideal for studying the location, condition of the building, and your budget, before arriving at your final decision.