Leah Kelvin
Active member
If you are thinking of how to diversify your investment portfolio for long-term income generation, then investing in commercial real estate is a good idea. The property types for consideration in this case include office buildings, shops and apartments among others and balancing the risk against likely returns before making investments is also very important. A market analysis is important before one can draw any conclusions on local economies, vacancy rates or even competition levels. When undertaking due diligence on commercial properties it’s advisable to consider such things as physical condition, existing zoning regulations and rental history among others. Other professionals who play a vital role in this kind of investment is appraisers and real estate lawyers amongst others. Apart from that funding options will vary depending on the size of the property where some capital will be needed. Changes in rents, job growths and population changes should be considered while leasing these premises so as to maximize revenue growth as well as appreciation.
