If you’re looking to invest in real estate in Ontario, commercial property is a lucrative option. With the current boom in the housing market, the returns on investment can be extremely profitable. However, there are a set of guidelines that you need to adhere to minimize your risks. Having in-depth knowledge of these guidelines can help make the entire process of buying commercial property for investment or construction proposes a smooth one.
There are certain benefits that come along with a good investment in the commercial sector. First of all, these investments can turn out to be great assets that can secure your investments from currency devaluation and economic instability. Commercial property development or investing gives you the possibility of widening your range of investments and the extended lease periods that often characterize commercial properties, are added benefits.
When looking for a commercial land or property to invest in Ontario, you need to zero in on the right locations. Taking into account certain variables, and making an informed and wise decision, are crucial parts of the process. Here are some pointers you need to look for when presented with an opportunity to invest:
- One of the most important things that you need to look into is the location of the land or property. It is paramount to carry out proper research with the help of a good real estate agent or broker to find out if the location has good market growth.
- There are also advantages that come along with certain types of commercial land development or property investment. Retail and office spaces in particular, are proving to be more beneficial in Ontario than other types of commercial properties.
- Another aspect that you need to look into when you invest in commercial land or property is the rental yield. In contrast to residential properties, the amount of money you stand to make from a commercial property is the main factor that decides its value. So instead of looking at appreciated resale values, you would be better off looking for a return of around 10-12% per annum on rental yields.
- Before investing your hard-earned money on commercial land, property or space, be sure to do your research, just as you would for any other type of investment or property development project. In this case, make sure to check the quality of the property or land, its accessibility, growth potential, and authenticity of the developer.
These are the main considerations to be taken into account when you invest in commercial property. Wisely done, this type of investment can be give you great returns, and even help you avoid wealth tax to a certain extent.
Toronto’s Michael Beattie is a highly innovative and experienced construction professional with expert-rank as a Structural Designer and Project Manager. Michael is dedicated to producing results, completing construction projects with leadership and integrity. Some of his most recent commercial projects include:
- Construction Manager- Southcore Financial Centre Toronto Development
- Construction Manager- Delta Toronto, a next generation, 45-story premium 4-star hotel.
- Construction Manager- Art Gallery of Ontario—Transformation AGO project
- Construction Manager- Oakville Trafalgar Memorial Hospital