5 Mistakes to Avoid in Commercial Real Estate InvestmentAugust 5, 2018
Commercial real estate investment is often hailed as complicated than that of a residential property purchase, as the factors involved and the prerequisites attached to it are often hard to decode for the layman without the assistance of a realtor or a broker. It is wise enough to say that investing in a commercial real estate property should be an infirmed business so as to avoid mistakes that could cost the buyer or investor.
Here is a list of mistakes to avoid while investing in commercial properties.
Incorrect property valuation
The key in commercial property investment is to rightly ascertain the value of the property by browsing through a variety of properties in the market and comparing the prices. Interacting with real estate brokers or realtors is also advised to understand the current price trend and come up with the right property valuation.
Improper checking of ownership documents
Not checking the ownership details carefully is a common mistake made by most investors and buyers. Failure to identify fake documents or skipping important agreement clauses can later cause dispute between the seller and the buyer.
Not checking building compliance
It is the duty of the buyer to ensure that the building or property comply with the building codes and regulations set forth by the municipal authorities. It is advised to get the property inspected and verified by contractors and architects to avoid any discrepancies in the future.
Not checking approval certificates
Not verifying the building approval certificates is another common mistake. Buyers should carefully review the certified copy of the building plan and layout and ensure that they are sanctioned with the seal and the date of approval by the authorities.
Lack of background check
A thorough background check of the developer or builder is crucial in confirming the quality of construction and the future of the investment. Investors should verify the credentials of the builders and review their projects to learn more about their quality of work and policies.
A trusted name for building the choicest of addresses in flats and apartments in Calicut, Ladder Kerala offers ideal commercial spaces along with their premium flagship project Ladder Mankav Greens to provide the prospective investor with the smart choice of owning a luxury home and a profit laden commercial property.