There are many things to consider when deciding whether a property is good investment or not. When it comes to real estate, location is always a key point when purchasing commercial real estate in Penticton. The location is crucial when trying to attract tenants that will benefit your property, and can help when trying to determine the value of your investment.
When deciding to purchase Penticton commercial real estate, you need to always be conscious of the condition of the property. If you don’t have plans to do any renovations on an existing property, you should make sure to factor in the wearability of the property – the possibility of potential costs of any future repairs.
OPPORTUNITIES TO LOOK OUT FOR
When looking to invest in commercial real estate in Penticton, newcomers will sometimes overlook certain opportunities that a more experienced investor would recognize. As an investor you need to look for potential factors that could help a property increase in value. Are there no developments proposed nearby, such as a transit system that will make the area more accessible from a prime location, that it did not have before? What is the timeline to completion for the types of projects?
A lot of new investors will also overlook a great location that feature older properties, which may involve heavy redevelopment costs upfront but have high potential to attract high-quality tenants down the road. These types of properties can represent good long-term value for investors.
COMMON PITFALLS TO AVOID
The most common pitfall new investors fall into is underestimating the true costs associated with a property. Investors need to determine in the income reported by the previous owner or landlord is accurate. It is also crucial for investors to inspect the property and the condition of the property, and any associated costs for fixing the problems. If the costs of the renovations is too high, rent may not be enough to recover the price of the investment. An expert Penticton commercial real estate agent can provide an accurate assessment of the potential investment and help newcomers avoid these costly mistakes.
OWNING VS LEASING
The benefits of owning vs leasing commercial real estate in Penticton, are very specific to the individual or company. Every business is different and has different needs, and this can have a factor in determining whether owning or leasing is appropriate. Owning commercial real estate in Penticton may provide more flexibility to making improvements or additions to the property that could potentially help the business grow. Choosing to buy rather than leasing a property is really a case by case basis.