June 13th, 2012
If you want to invest in commercial real estate, you would be looking at things like flats, shopping centres and similar properties that can earn you an income. The main rules when it comes to investing in commercial property are pretty much the same as when you invest in residential properties – location is the most important thing of all.
You want to set up the commercial property investment in the right area – preferably just before a property boom so that you can maximise the return on your investment. In order to maximise your return, you are going to need to keep an eye out for great investment opportunities and this means putting your nose to the grindstone and doing some proper research.
Take, for example, an area like Sadlier. This is primarily a residential area and so, at first glance, there may not seem to be a lot of area for growth in the commercial property market. The main advantage here is that it is a very well established area and is adjacent to Mannix Park, which is to the North and reaches from Sadlier Avenue in the East to Heckenberg Avenue in the South. The area is bounded by Cabramatta Creek in the South. Development in this area, named after Richard Sadlier – Liverpool’s first mayor, began mostly in the sixties when the Green Valley Public Housing area came into being.
It may seem that the area is in decline because there are fewer inhabitants but this is more because of a housing shortage than an actual decline in the suburb itself. The infrastructure is sound and there is a good school in the area. Because of the relative stability of the area, house prices are not bad. This is good news for those looking to invest in commercial properties. An area like this could show a good return in terms of rental income and capital growth according to experts like Real Estate Liverpool.
There are a few other things to keep an eye on when it comes to commercial investments – look for areas that are set to expand – new developments, commercial expansions, etc. are all indicators that an area is on the up and up. All in all, it is important to look at these kinds of factors when considering investing in commercial properties. You should monitor the various estate agencies’ websites for more in depth suburb profiles and upcoming developments. If you are willing to put in a little time and effort, you will be well rewarded.