The idea of investing in commercial real estate conjures up images of six-figure profits, searching for investment partners, and dealing with business tenants. In reality, buying commercial property can yield a passive flow of income for you and doesn’t always require that you have so much capital of your own.
With opportunities in property markets such as in the UK looking up, it is wise to seize the momentum and create a stream of passive income. The good news is that you no longer have to think of relatively small investment as new and creative funding patterns are springing up.
Crowdfunding has been one of the most popular of these new real estate investments standards since the past decade; plus it’s surprisingly simple and potentially profitable. It involves raising the capital needed for a commercial property funding by pitching directly to a group of wide and diverse investors.
According to statistics, this property funding method accounted for over £25 billion in real estate transactions globally in 2015.
Location is still king
If you have ever read or done anything in real estate, you’ll know that location is the most important factor that ultimately decides your success; not price. You must have heard the often used phrase: “location, location, location.”
Is the emphasis any less today? No. Location is still prime in real estate, and particularly so if you’ve ever considered investing in commercial property. Generally, the value of property varies greatly depending on its location.
Besides ease of access, a good property location attracts higher rent and higher resale value. Property prices gains in value as the location gets better. This, however, does not meanthat when investing in commercial property, you should only buy in locations that are absolutely the best, even if the property is the most expensive.
The reality is that without a good location, all the promising stats will quickly become irrelevant and the property will dip in value, regardless of the size, quality and initial buying price.
There are a lot of important factors that should sway your commercial real estate investment decisions, and price and location must always come tops. In fact, they go hand in hand. Price is vital, but location is more important.
For example, as the UK real estate sector (and especially the London market) continues to show potentials, just as forecasted by property experts, it’s a good idea to join the ladder now using some smart investment options such as a property crowdfunding and investment in London.
Current data from the Office for National Statistics (ONS) shows prices in the UK market are dipping; and combined with shortages of homes, medium and long term investors are projected to gain better return on investment.
A nice location for your commercial property investment, like London, will trigger greater demand and better chances of a profitable selling price.
Investment in property comes with risks as well as the possibility of rewards.
For more information visit here https://crowdlords.com/full-risk-disclosure
CrowdLords Limited 