Buying a commercial property as an investment is not something for the novice or unwary. The market is primarily made of up of professional investors who have money to spare. In many cases commercial properties go for more than residential property. You could end up with a greater profit, but it can also be more risky.
The wide majority of these properties that come up for an auction in U.K. are handled by six auction houses. If this is the market you want to enter, you need to be very rigorous in doing your homework initially in order to compete against the pros. Even before you have a look at properties, be present at several auctions to understand how it works and acquire a feel for them. You will be going up against skilled people when you lastly bid, so be prepared.
Chances are that first you will hear of an existing property is when the auction is announced. Visit the site – never ever bid on anything that you haven’t inspected. You’ll require having a surveyor with you – and you should pay him from your own pocket. Although a physical inspection is just only a part of your preparation. You also require a solicitor to look at the legalities of the property. How to use it? What are the overall plans for this area? These are the most important factors that can decide whether you still want to consider bidding. Again, you need to pay the solicitor’s fees yourself.
Location must be the next major item on your list. How can you access to the site? Are the roads in good condition? Again, what are plans for the area? Whether it is retail or commercial? At times these can affect a property’s price. Next what is the market value? What could you expect in the way of rents and tenants? Think much about this entire first. Before starting for an auction, you’ll need to have your finance in order. With commercial properties, this would generally be a line of credit from a bank or any other financial institution, than a mortgage as you find it with residential property. Do not overstretch yourself. It’s better to be realistic, definitely at first, than over ambitious.
You need to register to bid, and confirm that you have financing in place prior to you bid on a property. The chances are that you may not win the first couple of times when you bid on a property, which leaves you out of pocket for the solicitor and the surveyor. But it is just part of the game. Don’t be the foremost to offer a bid; if no one else bids, the auctioneer would lower the starting price. Above all, avoid bidding more than you can afford. Set a limit and fix to it. To go over again can be a recipe for disaster. If you succeed the auction; you’ll be expected to display your proof of financing and exchange contracts. Always you will be expected to pay in full within 28 days. Failure to do so could bring a breach of contract suit. In addition, you’ll be liable for any difference between the price that you offered and what the property brings when it’s re-sold.
Owning a property can be a great asset if it is taken care of properly and the value of a property can also be increased sometimes significantly by making some simple changes. Perhaps the best way to increase the value of any home is to add an extension. Adding an extra room should be the goal. The kitchen is an important aspect of any home and making upgrades and improvements to it can also make great improvements to the value of the house.
Adding a garage or a carport if your home does not have one can also impact the value of your home positively. Also make sure to remove as much clutter as possible from your home both on the inside and out as this will give the illusion of greater space which will always attract higher offers. Use bright colors and even adding large full size mirrors such as on closet doors can help to expand the room and again give the illusion of greater space especially in smaller rooms.
Use closed storage units in the bathroom as open shelves tend to look messy and disorganized. A well organized home always is perceived to be of greater value than if your home was disorganized. Make sure your lawn is neat and well mown and weed free. Adding some attractive landscaping at the front of the house will immediately give your potential buyers a great first impression which is always important to draw the highest offers.
Make sure the paint on the outside and in is in good condition because many buyers associate chipped painting with potentially other worse problems like a leaky roof and such so inspect the condition of the painting on your home because it can make a big difference. Replace old ugly door knobs or kitchen or toilet drawer knobs with shiny new attractive looking ones. Make sure the bathroom always looks clean and organized so do what it takes to remove the soap scum and other stains. Many buyers judge the price of the home by the condition of the bathrooms so pay close attention to this part of your home and make sure it is spotless.
Also pay attention to the smell of your home and before any potential buyers enter your home make sure to use a neutral smell or a deodorizer that eliminates bad smells. Giving the best possible first impression is critical in order to get the best offers. Putting up an attractive picket fence or replacing an old worn out fence can instantly help to create a good first impression for both buyers and appraisers. When painting your home always make sure to paint the front outside portion first as that is what people will see first so if your budget is really low then pay attention to that area.
Use light colors when painting the interior portions of your home as this will make the home appear brighter. Also make sure you are using white incandescent light bulbs that are bright. A bright interior is always preferable to a dark and dull one. Do not forget to paint the ceilings too since they suffer from wear and tear also. Adding new windows can also be a potentially profitable addition as it will help to save in energy costs and improve the appearance of the home.
Remember to always consider the return on investment in any project. Take into consideration what other similar properties in your neighborhood are selling for and use that as a guide for what you can expect yours to sell for. Often the simplest and cheapest changes such as repainting or adding a simple fence can give you the greatest return on investment.
Both Mann Saini & Shakil Zaman are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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