When talking property investment, most people still gravitate towards the familiar category of residential. However, seasoned investors have long been privy to the power of commercial and have been keeping the lucrative world of commercial property as their best-kept secret. If you’re looking to get started, these seven key steps will help you make the right choices where commercial property is concerned and lead you on the way to growing a passive income that you can live off.
1 Garner an investment mindset
Shifting from a fear mindset to an opportunistic mindset is the number one key to successful commercial property investing. It will help you achieve larger goals, resulting in higher-yielding properties, stronger growth and ultimately more revenue.
An investment mindset, conversely, will deliver results sooner, as it gives you the unique advantage of seeing beyond what everyone else sees. The ability to look past flaws in a property and value the costs of their remediation allows you to purchase better based on the numbers, compared to your everyday investor.
Most importantly, though, it will help you set realistic expectations around what you will experience when becoming a long-term commercial property owner. It’s realistic that you’ll one day have to deal with problems such as losing a tenant at a bad time or copping a large unanticipated maintenance bill.
These issues are part of property ownership and how you deal with them makes all the difference. Vacancies can be challenging, but it’s about staying positive and working out solutions, and saying, ‘Well hang on, I’ve made my money back already via growth,’ or why not take advantage of the vacancy by doing minor fix-ups and renting it for more?
This story is from the September 2021 edition of Money Magazine Australia.
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This story is from the September 2021 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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