This surging demand has made the prospects of real estate industry all the more brighter and better, especially, for the real estate buffs and investors.
This can be proved by the study made by Massachusetts Institute of Technology Center for real estate, where they conducted a research and came out with results which were astonishing. The study states that during the credit crisis, the commercial properties witnessed a nose dive downfall of 10.6%, the largest decrease noticed since 1984. However, the avid investors always find a way out. These investors looked at this downfall in prices and saw it as a golden opportunity for making wise investments and making the most out of it. Thus, although there was a vast drop down in the prices and demand of the commercial properties all over the world, at least half or more than that number of investors preferred investing in the properties. Thus, the value of investing in Mumbai commercial real estate properties and others is always a wise decision.
However, there are umpteen property options and deals at your disposal and you only need nothing but the most fair and best deal for yourself, so how do you do identify the deal for you? Here are some strategies that can help you identify the best deal for you:
- Professionalism in the approach towards the deal: While making a deal for a commercial property, it is important that the investor understands the basic difference between the prospects of investing in a commercial property and the prospects of investing in a residential property. It is like you will certainly have to pay more for having a premise to accommodate more number of people than a premise to accommodate a single family. The income that you will generate on a commercial property is valued as per the usable square foot in the premise, which is not the case with residential properties. There is a greater cash flow, a wide market for good, larger pay offs, and affordable managers for the properties.
- Know your market: It is very important to know in and out about everything related to your industry. Real estate industry has various aspects and it is very important for the investors to be well versed with all the aspects in order to gauge the prospects of the real estate deals you are entering into.
- Explore the neighboring properties: While buying any new property there are high chances that you would not know much about the property and its surroundings. Go around and find out if there are any other deals running for sale and see if the prices match with what you are being offered.
- Make wise calculations: You need to know what the numbers speak about the prospects of the property you are going to deal in. The advantage of the numbers offered will vary from buyer to the seller. As a buyer, you need to make sure that figures mentioned to you are inclusive of all the cost that is required to incur on the property being dealt. Also, ensure that the property you are buying is easy to dispose off, when and if required.
- First impression is the last impression, is it? Well there are many real estate investors that have lost a good deal as the first impression was not right. You need to find out about the property in depth before you reject it or give it a go ahead.
- Learn to identify a good deal: While purchasing it is important to know whether the property you are buying meets your financial goals and makes sense to your investment portfolio. Look at the other buyers trying to get that deal. Are there more buyers willing to purchase it? This question will solve your purpose to quite an extent.
- Research, investigate and explore: To get a good deal, good amount of efforts are required too. You must try and use all sources to your advantage. Surf the web to post your requirements, identify trusted brokers and agencies and also do not miss on the classifieds that will cost nothing / negligible to get you a good deal.
These strategies can work wonders to get you a deal that will prove you to be a wise investor in the market.
Charlie Brown is a real estate investor and has made investments in numerous Mumbai commercial real estate properties and reaped umpteen benefits from the same. She also writes about real estate for various domains.