Investing in Commercial Real Estate: Tips to Avoid Mistakes
While investing in commercial real estate can be highly profitable, it sometimes comes with certain pitfalls. To manage your investment effectively, it's crucial to know the tricks that help you avoid mistakes.
Investing in Commercial Real Estate: Tips to Avoid Mistakes
Location, market evaluation, tax reduction, and even the type of property—all these factors are important when it comes to investing in commercial real estate.
Finding the Ideal Location for Your Property
To protect yourself from making mistakes in real estate investments, you need to know where to make your rental investment. Websites like Horiz.io make it easy to find cities with the best gross rental yields.
On the platform of this specialized company, you can discover the real estate advantages of major cities in France. This allows you to easily and accurately determine in which town to buy a property or offer the rental of a commercial building.
Investing in commercial real estate is a long-term project. It’s advisable to look at the economic dynamism of the city. If the location you choose shows several positive factors, such as job growth projections, net migration rates, or a high foot traffic area, you’re on the right track!
Warehouses, shops, offices, or even spaces for professional activities—the types of commercial real estate investments are quite varied.
Making a Commercial Real Estate Investment Profitable If you’re considering investing in commercial real estate, you might opt to attach your property to one of the following statuses:
Because the commercial real estate market is booming, you can easily invest your money using these investment tools.
When it comes to real estate investment, SCI is very advantageous. Depending on your goal, you can lean towards a classic, family, attribution, or construction-sale SCI. The purpose of an SCPI is to acquire and manage rented offices and commercial premises.
More flexible than SCPI, OPCI allows you to invest through a life insurance contract while diversifying your savings. Real estate crowdfunding is accessible through platforms dedicated to participatory financing.
Investing in Commercial Real Estate
Opting for Promotion In the real estate sector, enhancing and exploiting a property is governed by real estate promotion. This generally involves a specific commercial branch.
Real estate promotion is a system that involves creating products that are sold to potential buyers. As a result, the commercial building or professional premises can be these "products," intended for rental or personal use.
When investing in commercial real estate, several key players are to be considered:
The land developer, who is responsible for tracking down properties,
The promoter, who assists buyers or future tenants from the program’s design to the sale of constructions,
The dealer, who’s in charge of buying and reselling properties with added value.
5 Things Homeowners Are Worried About Today
Managing real estate comes with multiple challenges: maintenance, renovations, paying property taxes, adhering to environmental standards, etc. However, certain issues concern homeowners more than others.
Here are five things that worry most homeowners today:
Effective Energy Management
for the Home Energy efficiency is one of the main concerns for most homeowners. Three major concerns revolve around the energy management of a house. First, the homeowner looks for ways to reduce the energy expenses of their home.
Next, they want energy management to lead to an improvement in the comfort of the home. Lastly, the homeowner seeks to increase the value of their real estate. To address all these energy management concerns, insulating homes is the ideal solution for homeowners.
You can carry out all your insulation work with Hellio to gain comfort and save money.
Interior Home Decoration
To enhance the value of a home, it’s important to nail the interior decoration. That’s why homeowners place great importance on the choice of colors, patterns, or materials used to decorate their homes.
To successfully decorate an interior, certain fundamental rules must be observed, especially when you’re a professional decorator. The choice of interior colors should reflect the taste and style of the homeowner.
Additionally, it’s important to strike the right balance between the lighting in the rooms and the covering of walls, windows, and doors.
How to Build and Maintain a Healthy Home
This concern is shared by all homeowners, whether their house is newly built or renovated. With today’s building standards, it’s crucial for homeowners to construct homes that guarantee a healthy environment and a pleasant living space for their occupants.
As a result, homeowners are very particular about the different tools and materials used in the construction of their homes: wood, tile coverings, paints, etc.
How to Reduce Home Maintenance Costs
One of the challenges for any homeowner is dealing with maintenance and cleaning expenses. To avoid exorbitant costs, it’s important to make a good estimate of all the areas that need maintenance (interior spaces, façades, garden), the products to be used, the frequency of maintenance, etc.
Homeowners' biggest worry is making an inaccurate cost estimate, which could lead to more serious, even costly, repercussions.
How to Protect Your Home from Natural Disasters
The major risk associated with real estate is that it can suffer damage from nature. In reality, no one can predict a natural disaster, and once it happens, you can lose your property or see its value decrease.
To protect against weather events like a fire, storm, or mudslide, it’s recommended that homeowners get covered through home insurance.
The 4 Profitable Real Estate Investments to Make Abroad
It's time to start planning your next real estate investment in 2019, and the first thing you need to know is where the best places to invest are.
Unfortunately, the French market is becoming increasingly saturated in major cities, with a shortfall of 150,000 more housing units per year. Demand is skyrocketing while supply is shrinking. Investing in the French real estate market has become a tough battle, given the fierce competition.
So, are there other places to make profitable investments? Absolutely. International real estate stands out among investment options because it’s not only a tangible asset—meaning it’s real—but also one of the best current opportunities to generate income streams while creating long-term wealth.
Whether you’re considering your first overseas investment or looking to expand your foreign real estate portfolio, here’s where you should focus your attention and capital this year. In 2019, these places are the top opportunity markets:
Investing in Real Estate in Croatia
Croatia's unique geographical location, modern infrastructure, political and economic stability, and a skilled and highly qualified workforce are just some of the reasons to invest in Croatian real estate.
Modern transportation and energy infrastructure, unspoiled land, unpolluted seas, and abundant freshwater sources make investing in Croatia an excellent idea. Not to mention the influx of tourists year-round, making short- and medium-term rentals a successful venture.
Investing in Real Estate in Hungary
Investing in Hungarian real estate has been a popular choice among many foreign investors for over 20 years. This fact is a good indicator of the market's stability compared to other Central and Eastern European markets and the commercial potential
Hungary offers to foreign investors worldwide. Statistically, the Hungarian market is very active and presents attractive economic results for long- and short-term rental markets, with returns sometimes exceeding 12%. Property values have increased significantly in urban areas in recent years, and in some cases, investors have sold their properties after just a few years for very high profits.
Investing in Real Estate in Thailand
Investing in real estate in Thailand yields good returns, far exceeding the income from investments in European markets.
The return on investment in Thailand exceeds 10% per year. Land values have increased by more than 300% over the last decade, and the housing price index is 6.8%, meaning real estate in Thailand is experiencing strong capital appreciation.
Rental yields average 5% per year, with returns of 7% to 10% certainly achievable, offering investors a stable income.
According to a survey, Bangkok was the most visited city in the world in 2018. Last year, this city received more visitors than London or Paris. Once again, this deserves the attention of real estate investors, not to mention that neighboring cities like Hua Hin, Pattaya, and Phuket are growing in popularity every year and are becoming true real estate hotspots.
Investing in Real Estate in Indonesia
Indonesia is the fourth most populous country in the world and the largest economy in Southeast Asia, with a nominal GDP of $888.6 billion in 2014. The economy is also growing at an impressive rate. The focus on infrastructure, manufacturing, and services has helped Indonesia achieve an average annual
GDP growth of more than 5% since the beginning of the decade. Investments in Indonesia have exploded due to the recovery in its growth. Yet, it still hasn't received the same attention as other major countries in the region, such as China and India.
Much smaller countries, like Thailand and Singapore, even see more foreign investment than Indonesia. This makes investing in Indonesian real estate ideal for those looking to capitalize on the rise of one of the future economic powerhouses of the world. Currently, investments are concentrated on islands like Bali and Java, driven primarily by mass tourism.
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