Real estate is an industry filled with landmines that can decimate your profits. The issue for many prospective investors is locating a quality property space for rental goals in mind. The good news is that selecting a winner requires minimal research. Before jumping into real estate investing, it is essential to do extensive preparation and learn about the advantages and disadvantages. Here are the most essential characteristics to consider when searching for a commercial property:
1. Management Options
If you do not intend to treat your rental property as a full-time occupation—you must hire a property management company for your space and rental plans in Singapore. And before you choose a rental property to purchase, research the local property management companies. Additionally, a good property management company should possess several characteristics. These include a fair and transparent fee structure, current tenant procurement and management technology, experience, and a solid reputation.
2. Zero or Low Crime Rate
No person wants to stay near a crime-infested area. The local police or public library should have accurate neighbourhood crime statistics. Before settling for a space for your rental objectives, check the rates of vandalism and the rate of major and minor crimes, and note whether criminal activity is increasing or decreasing. Additionally, you may wish to inquire about the frequency of police presence in your neighbourhood.
3. Low Costs for Maintenance
Costs can make or break the profitability of commercial property in Singapore. Always request maintenance records and average expenses when looking at potential properties. Frequently, older properties conceal ongoing maintenance issues. Always have a licenced home inspector thoroughly examine prospective properties. Nothing is more detrimental to return on investment than a significant repair.
4. Big Job Market
Locations with expanding employment opportunities are more attractive to tenants. Consult the country’s labour statistics or a local library to determine how a specific region ranks in job availability. If there’s an announcement about a company relocating to the area, you can ensure that workers looking for a place to live will swarm a commercial property in Singapore. And it may increase or decrease housing prices, depending on the type of business involved.
5. Near Quality Schools
When dealing with family-sized homes, you should consider the local schools’ quality. Although monthly cash flow will be your primary concern, the overall value of your rental property will come into play when you eventually sell it. And if there are no good schools nearby, the value of your investment may suffer.
If you need a space for rental purposes, visit LHN Group – Space Resource today.