Peter Marks of Ray White Commercial Toowoomba shares his strategies for obtaining and retaining commercial property.
Commercial investments can carry a vast range of benefits assuming they are proven to be sustainable. With this in mind, there are certain elements of every commercial property that buyers should familiarise themselves with before making a decision.
Ray White Commercial Toowoomba Sales and Leasing Agent Peter Marks believes while there are a number of strategies, the following are five significant ones that buyers should factor in to any commercial purchase.
1. Stand the test of time
Commercial property is a long-term investment, it would be naive to consider otherwise.
While it's important to consider the market at present, you need to also look to the past and to predictions for future market activity.
It's, therefore, a proven method that by viewing the whole package it will stand the test of time.
2. Ensure to generate cash flow
Endeavour to know the full details of the property and market conditions.
Ensure you have a long-term (7 years +) view of the investment.
Maintain several strategies for changing circumstances.
3. Lending & collateral appeal
Cash flow, low maintenance requirements, good location and long term leases will keep both you & your financier happy.
Looking ahead, using your investment for future collateral value should also be a consideration.
4. Promote growth
While inflation has been under control of late, you need to ensure that you obtain capital growth.
Growth will vary depending on the location and the type of commercial property.
In times of downturn, to ensure you aren't left up the creek without a paddle, try to maintain steady growth on your investment by frequently reviewing your portfolio.
5. Tax benefits
Remember that while tax is a very important part of maximising the investment opportunity, it's not necessarily the main consideration.
It's important your investment is viable on its own, with any tax benefits being an added bonus.
Whether you negatively gear or look for depreciation values, it's all about maximising your tax benefits.
It is important that you consider advice from all professional services that are available in relation to commercial property. Arming yourself with the correct information will help you make informed and quality investment decisions.
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