Thursday, 1 December 2011

Advice For Investing In Your First Property

By Bob Charlton


Investors have long held real estate as a favorite industry in which to turn a profit. Investment in property pays off in the long run and also offers opportunities for making money in the immediate future as well. Property is available in both commercial and residential types, and investors have considerations to make specific to each of them. Some of these considerations are rather similar from one discipline to the other, though. Here are some investment strategies regarding commercial vs. residential properties.

When investing in any kind of property, realtors and buyers alike have long sung the praises of location, location, location; with good reason. When investing in residential property, either to buy or rent out, a house located in a school district that performs well on an annual basis is attractive to families or to those who hope to raise a family in the near future. Many buyers and renters also look for houses located away from busy roadways that cause noise and traffic problems.

Commercial property investment is also predicated on location. The main difference between commercial and residential preferred locations however, is that commercial properties benefit from sitting on a site that is heavily traveled. Businesses near busy roads are more lucrative because of the number of potential customers who see the property. Commercial property near interstate and other main highway interchanges offer easy access to customers who might have to travel a little farther to shop there. Even apartment complexes are somewhat better off being near main roads because the renters may not have the means to a vehicle and would prefer to walk to do their shopping.

The local housing market will also drive the investment in residential property. The purchase price will of course be affected, and a reasonable amount that can charged for rent is as well. Commercial investors must also play by the rules of the local real estate market, but they are more directly affected by the general economy of the area. The economy certainly is a major force behind property value, but it has a massive impact on the amount of money people are willing to part with on more luxurious items. This will affect the stores that rent from a commercial investor or landlord. It is a good idea to analyze the economic trends of the area in which one hopes to invest in commercial property.

When planning to invest in either residential or commercial property, the buyer must take some time to study the economic climate. He or she must also evaluate the neighborhood that houses are located in and the amount of traffic a commercial property consistently sees. Commercial as well as residential property investment requires both time and money.




About the Author:



No comments: