Commercial Property: 5 Key Decisions To Guarantee Your Success With Commercial Property Investing

Commercial Property: 5 Key Decisions To Guarantee Your Success With Commercial Property Investing

Investing in Commercial property is really not "rocket science". But there are certain key steps you do need to follow. And those require you to make a number of simple (yet vital) decisions.

DECISION #1: Setting Goals for the long and short term?

In other words, are you seeking Income on Capital growth - or maybe both? Perhaps you are after some good Tax savings - through negative gearing or Depreciation?

DECISION #2: The Sleep Test!

You need to establish your comfort level as far as the amount you will borrow. For some people, 80% is just fine; but for others, 50% is all they can live with. Therefore, you need to determine your "Threshold of Insomnia" from the.

DECISION #3: Your overall Portfolio mix.

Do you intend to focus on just one sector in the Commercial property market - like Retail? Or would you prefer a spread across the Office and Industrial sectors as well. Having some diversity will help you smooth out any ups and downs that may occur along the way.

DECISION #4: Go it Alone ... or join with others.

Not many people starting out are able to jump straight into the market, and buy a Commercial property for $1 million+. so you can leapfrogged your competition by joining with another 12 to 15 like-minded investors, in a Private Syndicate - to buy something in the $2 to $5 million range - where you obtain greater value for your money.

DECISION #5: Choosing your team of Consultants.

As you'll appreciate, simply being able to move quickly means you can often grab some of the best deals. Therefore, you need to have a trusted team of Consultants ready to help you with ... assessing Value; putting the Deal together; reviewing the Contracts; sorting out Finance; undertaking the Due Diligence and so on.

Where to from here

You need to start somewhere and the outcome of these five decisions will ensure you head out on on the right track from the outset. From here, you need to look at your investment objectives and then your buying criteria both of which we will cover in subsequent articles.

Investing in commercial property is not rocket science; but there is a clear set of rules you do need to follow, in order to be truly successful.

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