MISTAKES TO AVOID WHILE INVESTING IN COMMERCIAL REAL ESTATE

Introduction

Real estate investment is one of the biggest investment decisions that almost every family and individual takes a keen interest in. In India, investing in the metros is like a gold mine, of which Chennai is one of the hottest real estate market because of its infrastructure, medical facilities, transportation network like the metros including its rich cultural history. Real estate investment takes the form of plots, apartments or homes for sale, commercial properties for sale, including the sale of commercial land in Chennai. This unorganized market offers immense potential depending on the socio-

What to Look out for?

Research, research, research: One of the biggest pitfalls that is not given enough time and attention is the need for enough research and homework about the property you are interested in buying. Often, one relies on word of mouth or references. No matter how reliable the references maybe, it is important to do a thorough background check about the property and evaluate whether it is worth investing in. For example, when investing in commercial property, pay attention to the condition or state of the property, the state of architectural components, quality of construction, insurance,

Work with Real Estate Professionals

Unlike many countries where there are certifications to practice as a real estate broker, such laws are not enforced in India. So it is absolutely essential to hire professionals who can do a thorough job for an industry prescribed commission. For example, there are real estate lawyers who can evaluate the background of the property and check for hidden legal tangles that should not cost you later. Working with registered and well-known real estate brokers or organisations will also add another layer of security to such investments since there are contractual laws that will support both

Financial Investment

While a commercial property that you are interested in may look attractive, it should also be practically evaluated against the financial condition. Over borrowing is never a safe option. The investment in such properties should be planned around your existing expenses and financial condition so that there are no setbacks in the event the property investment has a delayed yield. Sometimes, it may be a wise decision to pull back and postpone the decision to invest if the financial back up is not enough to cushion you in the event of a setback.

Conclusion

In summary, investing in commercial real estate is a good decision. However, ensure that the necessary checks are in place. Working with known developers, doing enough due diligence, having a strong financial plan, including an exit strategy as a back-up, all go a long way in ensuring that the investment is worth your time and effort.