The Hits and Misses of Commercial Property Auctions

Andy Warhol's Mao To Be Auctioned At ChristiesWhile traditional methods of selling real estate are still one of the more preferred channels, commercial property auctions as a platform has been gaining considerable ground and traction for the past years on a row. Investors have discovered that what was once a seemingly intimidating thing is actually one of the more powerful and opportunistic avenues to consider and use to one’s advantage.

But just like anything else, commercial property auctions are not fool proof. They’re not all encompassing either and so they need to be used well for us to benefit from them the most. We should also first assess if our needs match and complement them and to do that we have to investigate on and weigh down their various hits and misses. We’ve listed them all down to guide you so read on and better take note.

THE HITS                                                           

  1. They satisfy a part of the market which traditional methods fail to tap at all or appropriately. There are assets here which may not be available in other selling platforms. As a smart investor, you need to know where to look and auctions are not a bad place to do so.
  2. They are an opportunity to buy more for less. As contradicting as it may sound, it does. This is because many assets sold at commercial property auctions can be bought at a price lower than what they would have been sold for under traditional means, provided that one does their research. A lot of foreclosed assets and even those that seek liquidation as a part of an estate are actually being sold here to take advantage of the market and the haste.
  3. They have some of the more interesting and highly coveted assets. If you are looking for a one of a kind commercial property, chances are you’d find them here as well.


THE MISSES

  1. It takes enough skill, knowledge and guts. Auctions are not for the faint of heart, the learning adverse and the lazy. It pays off but only after work is done.
  2. It can be a financial slaughter for some. This is reference to buyers who fail to do their homework and stick to their budgets and limits. Bidding without thinking is a nightmare highway.
  3. Commercial property auctions require significant and readily available resources. Auctions often require participating bidders for a security deposit and winning ones for an upfront down payment. The balance is also often payable under a strict timeline, some as short as 24 days. singerviellesales.com

 

Reminders Before Checking Out Investment Properties for Sale UK

reminderBuying your own home is but the dream for many and we’re not at all surprised. But the truth of the matter is it’s not as easy as we think. There’s a lot that goes into the purchase of a residential asset and to help you out, here are a few reminders before checking out those investment properties for sale UK.

Because assets cost a lot, it’s important to have a budget and prepare financing beforehand. At the same time, it’s crucial to remember that these acquisitions should be done within the means and bounds of one’s financial capacity.

Features can vary from one property to the other so essentially no two are exactly alike. This is also the reason why it’s important to know your needs and the purpose behind the investment. This will eventually help determine the property you’ll acquire at the end of the day.

Determine features or characteristics of the home that should always be present whatever happens. Even with all our needs (and wants) listed down, it’s close to impossible to find a home that checks every single criteria so prioritize and determine which ones you can forego and which ones you can’t.

A house needs to be conveniently and wisely situated. This is why it’s important to determine its proximity to important and relevant establishments and infrastructures such. Location is king when it comes to investment properties for sale UK so choose well.

With so many options, it’s easy to get sidetracked and feel overwhelmed. Carefully assess each alternative and don’t go jumping at the first find you see. Compare, canvass and check them against your needs and between each other.

Interiors and paint color isn’t everything but they can trick the eye to believing that a property is more than its actual worth. Focus on the more in depth aspects such as structural integrity, land quality, electrical and plumbing system and the like. Think of the bones and not just the skin.

Pictures and information should never suffice on their own. All seller-given information about the investment properties for sale UK have to be validated. Even ownership has to be authenticated. It would also be wise to hire a chartered property surveyor to assess the real estate property. This can help bring forward important information about the listing, either disclosed or not, that can aid in the decision making.

5 Crucial Qualities of Commercial Investments

commercial-investmentsWhen looking for commercial investments, investors have to be smart and quick to see what matters most and what doesn’t. With the insane amount of options in the market, it is quite easy to feel overwhelmed. One can get sidetracked and choose something that doesn’t exactly fit the bill.

We all invest in real estate for different reasons but regardless of that, we must make sure that the following crucial qualities are present in the commercial property we buy.

  1. Location – With any type of asset, location is a very important quality but all the more for commercial establishments. Because these spaces are meant to be used for business reasons, location plays an integral role. They have to be conveniently situated in a sense that going to and from them is a breeze. They have to be in close proximity to transportation hubs and roads. They must be easy to find too.
  2. Safety – To safeguard not only assets but also the safety of employees and customers alike, the property and its surroundings must be safe. Structural integrity is important. Electrical wirings and pipes must be in good condition. The location must also be in an area or city with low crime rate. In fact, even certain architectural and landscape features that add precautionary measures are more favorable.
  3. Foot Traffic – By definition, foot traffic pertains to the amount of pedestrian and public exposure that an establishment or brand gets from people whether or not they are customers and regardless if they make a purchase. The more foot traffic a particular property gets, the more benefits it bring as it can turn non-customers into clients and regular clients into patrons. Examples of areas with assets high in foot traffic include airports and train stations, malls and central city markets.
  4. Parking Space – Almost everyone owns a car and with that comes the need to park it. A commercial property that does not have ample space for this will drive customers away. When buying, this is a feature that must be present at all costs unless you want customers to simply drive by and leave you out.
  5. Value – When looking for commercial investments, always get a property valuation. It is common for assets to depreciate overtime but it would be better to invest in one that appreciates instead, right? Prime areas with proximity to significant establishments and structures often get value upgrades. Also, check if the property has any renovation potential that can add value in the future.


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Qualities to Seek in Retail Properties for Sale

retail propertyA retail space is utilized for a very crucial arm in operations. Referred to as the frontline where goods and/or services are sold and exchanged with customers for a fee, it serves as the selling point where efforts are rewarded with profits. This is also the very reason as to why seeking quality retail properties for sale is a very important task.

But what makes up a great retail asset? Let’s all find out.

Useful Life – The longer the estimated useful life of the asset is then the better even if such period is deemed longer than its intended use. Not only will it result to a lower depreciation cost per period but it shall also provide for some additional returns in the event that it is sold in the future.

Structural Integrity – Nobody buys a building, regardless of area and size, which is structurally impotent. Its foundation and construction must be of high quality to ensure length of use as well as safety for its users.

Area and Dimension – Depending on the type of business as well as the intended use of the space, area and dimensional needs will vary. However, one thing stands true for all. The Property must be huge enough not only to hold equipment and goods but also large enough to allow free and easy movement for both employees and customers. Cramped space is a huge blunder in retail establishments.

Safety and Security – Businesses need to safeguard a lot of things such as assets, employees and customers. This means that the location of the asset must be in a safe and secure area. Of course, this does not only pertain to crime rate but also to other risks such as fire, flood and the frequency of natural calamities.

Foot Traffic – Described as the level by which a brand or product is exposed to the public, regardless if they buy, are current or prospect clients and are simply passing by or entering the shop, foot traffic is a crucial ingredient when deciding on which retail properties to choose; the higher the level the more chances of a sale and an increase in potential market.

Accessibility – Always seek retail properties for sale that are conveniently accessible for everyone, this includes employees, suppliers and customers. It would be particularly hard to sell products or services if people could not reach the store easily or would have to go into great lengths in order to do so.

Making Your New Investment Property in the UK More Valuable

renovate investment propertyAn investment property in the UK is already quite valuable considering the fact that it is situated in one of the world’s biggest culture potlucks and the melting pot of various domestic and international businesses. Plus, its tourism is one of the best in the world. All of these and more make properties in the UK quite the catch.

But of course, investors would not stop there if they can. Who doesn’t want to raise the value of their investments further and get a bigger return in the process? Of course nobody; we all want a return of our investments. How does one achieve this then? We’ve prepared a list for you so go ahead and read!

  • Paint up your walls. – You’ve probably heard of this time and again and for a good reason too. A coat of paint adds a breath of fresh air to the room by creating a renewed aura and look to it. It makes the room look clean and brand new even if it isn’t. The use of colors will matter here as well. It would be best to use neutral hues like white and beige as they help open up the space and make it look bigger and brighter.
  • Clean up the lawn. – The interiors are not the only thing that matter. Even the outdoors too like the lawn, garden, curb and the area by the main door. Weed them out, manicure the garden, clean them up and make repairs where necessary. It adds value because it raises the ambiance and mood of the property.
  • Update the kitchen and dining. – Kitchens are by far the busiest place in every home and where everyone congregates for special occasions. If you are looking at upgrading the home to raise its value, you will have better returns if you do it in the kitchen. Just be sure that all work must not only provide aesthetics but function more importantly.
  • Update the bathroom too. – Next to the kitchen are the bathrooms. If you have the resources and you want to upgrade, do these spaces too.
  • Call in the pros. – If you want to know what upgrades and repairs would best bring up the value of your investment property in the UK, it would be best to call in a professional or expert to come and have a look. Not all assets are the same so each one is somewhat unique. Having a hands-on adviser will help you put your resources to their best use.

The Types of Investment Property in the UK

real estateIf you are planning to make an investment property in the UK, one of your primary tasks is to gather up knowledge and understand how the real estate business works. It can be daunting at first but do not fret. You’ll get the hang of it and we’ll show you how to do it first by introducing the different types of assets that you can invest on.

Type 1: Residential

This pertains to assets that can be used as residence such as homes, town houses, apartments and condo units wherein an individual or a family rents it out or buys it from you. Such properties may be intended for single occupancy or it may house more such as when your property has more units within it. Also included in this category are your vacation homes. This one often appears as a passive income as you are only most likely to rent it out when you are not using it.

Type 2: Commercial

This consists of office spaces or buildings used primarily by businesses. Such investments may cater to one tenant as in the case of an entire property or hold multiple units like that of a building with varying offices. The ultimate challenge of this investment property type lies in the location. Commercial spaces aim to be accessible and we all know assets in downtown and metropolitan areas can be pretty high although if you’d do well on it, the returns are pretty promising.

Type 3: Retail

These are assets that are aimed to provide a space for entities to sell their goods and/or services to their customers. Think about shopping centers and mall strips. They are the perfect example of this type. What make it a promising investment would be the often long lease contract period between you and your lessees. The challenge howe
ver is pretty similar to that of commercial spaces.

Type 4: Industrial

These are special purpose assets used as warehouse and storage units, production facilities and distribution centers to name a few. Be wary when buying this type because most assets have building specifications that may not cater to all of your clients. The more flexible it is the better.

Type 5: Mixed Use

This type of investment property in the UK is a combination of any of the above types and has more diversification and versatility. Think about a building with condominium units above and retail stores below it.

Creating Value for a Commercial Investment Property for Sale

commercial-property-investmentIf you want to put your commercial investment property for sale in the UK then you must be doing things to add to its value. To get better returns, owners, entrepreneurs, landlords and investors need to consciously strive to help their assets appreciate.

We all know very well that each property comes with a buying price, an estimated useful life and a salvage value. The buying or historic cost pertains to the amount for which you have bought the commercial asset. The useful life refers to the calculate estimate as to the number of years that the property will remain functional. The salvage value on the other hand may or may not be present and is equal to the estimated resale value of the said asset at the end of its useful life. These three factors are used to calculate depreciation which is equal to cost less salvage value all over life in number of periods.

It is quite common for a property to depreciate overtime but wouldn’t it be better if it appreciates instead? Wouldn’t you get better chances for returns if value goes up instead of going down? Yes and we are here to teach you a thing or two on how to achieve that.

First, stay up to date with repairs and maintenance. Do not let the asset sit down and wait till a buyer shows up your doorstep. You need to give it some TLC so as to preserve its beauty and functionality. You have to address the needed repairs and maintenance. They will come with a cost that is true but you have the option to capitalize it thus add value.

Second, invest in value accumulation improvements. You may want to plant some trees or shrubs on the front lawn, add units of shelving, upgrade furniture and fixtures and similar other renovations. These can really help when it comes to appreciating properties. When assets are improved for the better, there’s no reason for it to depreciate. Plus, doing so will make it more appealing to potential investors.

Third, aesthetic can make a penny’s worth quadruple. Simply adding a fresh clean coat of paint to brighten up the old dirty walls can do so much. Cleaning the front and backyard of fallen leaves and dirt and making the commercial investment property for sale smell good can do wonders. People are more willing to spend more on assets that have been well maintained.

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Common Misconceptions About Metropolitan Living and Owning a Residential Property Investment

residential investment propertyMisconceptions are fairly common. You can even call them normal in the sense that almost everything in this world is bound to be surrounded by myths one way or another. What a smart person would do is bust them out and get their facts straight. After all, it pays to be well and correctly informed. You don’t want to be that person whose knowledge is only filled with hearsays and unfounded information. You could even be missing out on a good opportunity! Speaking of misconceptions, let’s talk about these that revolve around metropolitan living and owning a residential property investment in the city. Are you ready? If so then let’s continue.

1st Misconception: Properties are very expensive.

Keep in mind that the value of any asset is a combination of various factors and not just location alone. True enough, a home in the city is valued higher than a similarly structured one in the country side but to say that everything is expensive would be a mistake. In fact, there are properties that are quite affordable.

2nd Misconception: The city is overcrowded.

It may appear at first but not everything is what they seem. The metropolis may have more population than its countryside counterparts but space is still present. Besides, the times when you feel like everything is overcrowded is most likely the time of the day when everyone seems to be out and about, the rush hours for example.

3rd Misconception: Traffic never ends.

Just like any other area, traffic is a common thing and it is worse at certain points of the day particularly early in the morning when everyone heads out for school or work and at the late afternoon when people head home. There are dead times when the road is free of traffic. It ends. It’s not there forever.

4th Misconception: You only have condominiums as an option.

Contrary to popular belief, regular homes can be found in the city too. Condominiums do abound but they are not the soul option. It just so happens that more and more people prefer to have them as their residential property investment. At the end of the day, it still boils down to preference, lifestyle and financial capacity.

5th Misconception: Everyone is rich.

The metropolis is a huge potluck. You’ll find people of various race, age, gender and even financial status. Not everyone is rich.

Which misconception about metropolitan living and owning a residential property investment did you find most shocking?

How to Lessen Vacancy Periods for Rental Residential Property Investments

When you have residential property investments, chances are you’re renting them out. The real estate business has come to a boom these days and if you grabbed the opportunity then lucky for you! The thing is, just like any other entrepreneurial endeavor, this requires hard work, persistence and the right strategies devised to achieve goals if not do better. One of the challenges faced by investors is vacancy periods or those spans of time where rental units are vacated and no tenants seem to be interested on the property. That can indeed be a huge problem given that lack of tenants translates to zero profits. How then can you fix this? Here are some effective ways for you to consider and try.

CLEAN UP THE PLACE.

residential-investment-real-estateNo one likes to rent out a dilapidated looking asset. Garbage tossed on the lawn, leaves scattered by the backyard, peeling off wall paper and paint, broken fixtures and the like not only makes the property look dirty. It also kills appeal. You have to ask yourself; if I were looking for a place to reside in or to hold business, will I choose this? If your answer is no then you better clean up any mess. A fresh looking asset will not only attract tenants but it can also help them stay.

MAKE IMPROVEMENTS.

Likewise, it wouldn’t hurt to make simple improvements on the property. You can add a fresh coat of paint on areas with dingy looking walls. Repair and maintenance are necessary for the upkeep of any property. Also you have to remember to level up your game. There are competitors out there who persistently improve. If you’re left where you’re standing, you could hurt your investment.

WIDEN YOUR MARKET REACH.

Marketing and advertising your property is also crucial. No matter how clean, well kept and improved your asset is, that would be of no use if people don’t know about it! Use various marketing strategies from traditional to digital. You need to get the word out there and when your market catches up, they’ll flock.

EMPLOY WORD OF MOUTH.

Another trick is to make use of your other tenants and their ability to deploy word of mouth. You can offer them some discount in exchange for successfully referring another good tenant who signs with you. This may come off as a cost at first but a few bucks would be better than months of vacancy for your residential property investments.

How to Get Yourself a Good Real Estate Agency

A good real estate agency is beneficial both to people who want to acquire and invest in properties as well as those who want to sell or profit from their assets. They are able to provide a lot of benefits to those who seek their expertise and services, such as but are not limited to:

  • real estate agencySound advice and the techniques to choosing best assets given certain factors like location and useful life ,
  • Tips and tricks to making better decisions when it comes to the purchase and sale of fixed assets of different types,
  • Getting good if not better value for your money and making the best out of your assets, and
  • Avoidance of scams and other pitfalls and common mistakes to property investing both in the buy and sale aspect.

With all that said, how does one get the best real estate agency in town? How do you determine who does their work best and whether or not they fit your needs? Read the list below and get yourself a handful of tips.

RESEARCH – This is of course part of our list. It’s impossible not to. You need to ascertain whether the services you will be getting is of tiptop quality and research can help you achieve this. The internet is at your disposal so why not use it and take advantage of it?

INQUIRE – Don’t hesitate to ask for referrals and recommendations. If there isn’t anyone you personally know who can provide you with these then you can head on over to relevant blogs, forums and websites where people get to share their experiences, reviews and feedback about a particular agency.

OBSERVE – You can also choose to observe where many people choose to seek advice and services from. Remember that bees flock where nectar is. If quality is not present then people will not be raving about it or seeking its services.

REVIEW – Even with good recommendations, it is still best to make your own unbiased research. Read up facts about the company such as its history or the people behind it, their processes and their principles regarding what they do.

CONTACT – Last but not the least, be sure to call up and contact the real estate agency that you have picked or even do this for all those that you have shortlisted. This way, you get a personal feel as to their quality starting from customer service.