Carefully chosen and managed rental property investments can pay good dividends over time, but there are pitfalls. First-time investors are advised to do their homework first and get a good understanding of the rental market, national property trends, as well as legal and tax implications.
Your Professionals agent can help you in more detail. In the meantime, below are some good guidelines about things you need to know when considering either a Residential and/or Commercial investment property.
We strongly advice to help manage your property investment, you engage a Property Manager. This takes all the stress out of managing your investment. At Professionals, our offices can help you with this service, if there is anything you are unsure of please contact us for further information.
Why use a Property Manager?
Commercial property investors can look forward to good rates of return, provided they choose wisely and do their homework. As with all investments, you should take professional legal and financial advice.
There are many options when it comes to investing in commercial property, these range from offices on a single floor to entire buildings. They include light industrial units, warehouses, showrooms and retail premises. In many cases, commercial property can be purchased with tenants and leases in place.
There are various ownership options when buying a commercial property these include:
- Buying as an individual
- Buying as a partnership
- Buying through a company
- Buying through a trust
When purchasing a commercial investment property, make sure you take professional legal and financial advice before deciding which option is best for you.
Before you make an offer, consult your lawyer. Your lawyer and your Professionals agent will assist with the offer to purchase and the terms and conditions of any tenant lease. Your lawyer can also advise on whether you’ll need to pay GST on the property.
Make your offer subject to certain conditions, such as arranging finance, and approval of the terms and conditions of a tenant’s lease. The property cannot change hands (and no one else can buy it) until those conditions have been met by an agreed date.