Real Estate Investing Guide for Beginners in
Newcastle Riley
University of Newcastle
Abstract
Property investing can be a good way to build your wealth, but it carries a certain degree of
risk. Before making a property investment purchase, you need to carefully evaluate the
benefits and risks to decide whether or not it will be a viable investment for you. By
consulting professionals or asking yourself questions, you can undertake a self-assessment
to identify how much risk you’re willing to endure.
I. Introduction
Investing in property is about creating wealth and achieving capital growth, so selecting a
property that is likely to appreciate over time and also buying at the right price are important
decisions. By researching the market carefully, you can try to find an opportunity to purchase
a property below its real market value. Here you will find all the details.
II. When it makes sense for you to invest in commercial property
Newcastle
Unlike residential property, commercial real estate is witnessing steady demand and increase
in prices, say various reports. We asked experts if retail investors should consider the segment
for investment
For retail investors, the key considerations for investing into commercial assets should be
thorough assessment of their risk appetite, investment horizon and the purpose of
investment (rental return, long-term investment and diversification).
In addition, location of the project, micro market performance, project quality, lease
covenants (rent, escalation, lock-in period, etc.) and benchmarking should be part of the due
diligence process. Also, one should see whether the micro market is preferred by a diverse
occupier mix or a specific industry. This is particularly useful if the investment is in an
upcoming commercial project with no pre-leasing activity.
At the end of the day, it is a trade-off between risk and return. Stable income-generating
office assets should be preferred for regular income stream needs, while some risk can be
considered for upcoming projects based on risk appetite. It’s a strict no-no for small investors
wanting to buy a small space
Currently, the commercial market is on an upswing with strong demand momentum and
leased options are at a premium.
Tarun Birani Founder and CEO, TBNG Capital Advisors
Real estate as an asset class created wealth but it has its own complexities in terms of higher
ticket sizes, liquidity issues, transparency and maintenance, among others. Compared to the
residential market which has been in a tough phase in the last four years, commercial real
estate offers better appreciation and rental yields, but it requires financial abilities, sufficient
market knowledge and longer holding capacity.
Options available to participate in commercial real estate can be shops, offices, land parcels,
private equity funds and real estate investment trust (Reits). Among these options, Reit
appears to be the best for retail investors as it addresses the challenge of dealing with a large
ticket size as well as transparency. Owning your own shop, office or land requires higher ticket
sizes as well as proper due diligence in terms of legal and future market outlook which is
difficult to do at the retail level.
Before you succumb to the lure of higher rentals in commercial real estate, keep in mind a
few factors.
What is your overall allocation to physical assets as compared to financial assets? The former
certainly have the disadvantage of illiquidity—use physical assets to meet goals that are at
least three years away, so you are not forced into a distress sale to meet your needs. Have
you factored in non-occupancy? The rental returns are higher when they are paid; do you
have the financial muscle to hold on, when the tenant vacates the premises? Operationally,
do you have a system in place to locate new tenants and negotiate terms? Even if you have
all the right boxes ticked, how will you protect against the risk of a new centre coming up
nearby which has all the facilities of the existing property with a few additional amenities
which change the equation completely?
You could go ahead with your investment in commercial real estate after taking into account
these factors (and more).
Against a prolonged stillness in the residential real estate market, the commercial assets have
been performing well in the past couple of years. It’s becoming popular among not just
institutional and HNI investors, but also increasingly among retail investors. Commercial
properties yield 8-10% in major commercial markets depending on factors such as location,
demand-supply dynamics, quality of asset and maintenance.
The commercial market is forecast to remain robust with about 35 million sq.ft of average
absorption in the next couple of years. If you have an appetite for commercial real estate and
are looking for long-term investment, this is the right time to invest.
The investment can be more advantageous than investing in residential real estate, but it is a
little trickier as well. Good quality leased assets at emerging locations make more sense for
retail investors as it alleviates the risk of construction delays, quality of tenants and vacancy.
The investment in under-construction property can be extremely rewarding but it requires a
lot of patience and comes with more risks.
III. How to Find The Best Commercial Space For Your Business
There are many types of commercial spaces that you can rent and many things to consider
before signing a lease. The type of space you rent can affect the type of lease, the price per
square foot, and the wrong location can hurt your business, while the right type of space and
location can help your business to grow.
What Types of Commercial Properties Can Businesses Lease? Should you rent space
in a business park, industrial park, or retail location? Different types of commercial
real estate properties all have pros and cons. Learn how to determine what type of
space it makes the most sense for your business.
Commercial Industrial Spaces - Things to Consider When Leasing: Commercial
industrial space can also be used in place of traditional commercial office space,
usually at substantially cheaper prices. There are pros and cons, advantages and
disadvantages to leasing commercial industrial space.
Pros and Cons of Subleasing Commercial Spaces: Commercial subleases offer pros and
cons to business owners. Before you sign a sublease, be sure to weigh the advantages
and disadvantages of subleasing commercial space.
How to Find Available Commercial Spaces for Lease
Do Some Homework Before You Look at Space
Before looking at business space make a checklist that details and ranks your needs and
priorities before you see any space. It is easy to get excited about how a space looks and
overlook drawbacks. An experienced landlord or realtor will pick up on your enthusiasm for a
particular space and may hard-sell you to make a quick decision or be less flexible in
negotiating lease terms.
Having a checklist of questions to ask about the lease is also important because commercial
leases can be very complicated. A checklist of leasing questions will help you remember what
to ask so that you will have enough information about the terms to research more about the
type of lease being offered to you.
Checklist for Leasing Commercial Office, Retail, and Industrial Properties: When it
comes to selecting a location for your business you need to think things through. Make
a checklist before looking at commercial spaces of all the things that your business
needs to succeed and take it with you. If you have not already written a technical
feasibility study, consider doing so. A technical feasibility study can help you think
about, plan, and address all the needs of your business that need to be considered
when leasing commercial business space.
Glossary of Leasing Terms and Definitions: Before you start tackling commercial
leases, take time to become familiar with basic leasing terminology. For example, it is
important to know the difference between "usable square footage" and "rentable
square footage." In most commercial leases, you pay for more square footage than
you actually occupy.
How to Write a Technical Feasibility Study: Writing a technical feasibility study can
help you thoroughly consider and plan for all your present and future business needs
when it comes to the space you need.
Types of Commercial Leases and Common Leasing Terms
Types of Commercial Leases: Compare the types of commercial leases commonly used in
commercial real estate in an easy-to-read chart.
The two most common ways to lease office and other commercial spaces include:
Lease: In a standard tenant-landlord lease you are the main business (or individual)
named on a lease with the landlord.
Sublease: A sublease is when an individual or other business already has a lease with
a landlord, but subleases (rents out) a portion of the space their space to you.
Sublessors cannot transfer rights to sublessees that are not in the original lease or if
the original lease prohibits subleases.
Pros and Cons of Subleasing: Commercial subleases offer pros and cons to business
owners. Before you sign a sublease, be sure to weigh the advantages and
disadvantages of subleasing commercial space.
Understanding and Negotiating Commercial Real Estate Leases
Commercial leases are complicated and are very different from residential leases. Before
signing any commercial lease you need to know what questions to ask, and how to rent, load
fees and other added fees are calculated. Armed with knowledge you can negotiate the best
deal possible!
Women are just as capable of negotiating a good deal in commercial leases as men are but
negotiating starts with asking the right questions.
Once you have answers to certain questions, you can research more about types of leases,
leasing terms, negotiating commercial leases. You will also be better able to plan your
finances, and your negotiation strategies if you know what questions to ask.
Question #1: What Type of Commercial Lease is Being Offered? The type of lease being
offered is probably the most important thing to consider first because it determines
how you will be charged rent. The terms of commercial real estate leases are defined
by the type of commercial lease.
Question #2: Are the Terms of the Lease Negotiable? All commercial leases should
always have at least some room for negotiation, no matter how small. A completely
inflexible landlord is generally not someone you want to lease from because
"inflexible" often equates with "unreasonable."
Question #3: What Insurance Coverage Does the Lease Require Tenants to Purchase?
Few business owners new to commercial leasing will look beyond their actual monthly
rent and utility costs when determining if a space is affordable, but you also need to
consider your insurance costs. Moving from a home-based business into "brick and
mortar" space will cost you more to ensure your business because, in addition to your
own insurance needs, your landlord will probably require you to purchase insurance
to protect him/her as well.
Terms You Need to Know to Understand Commercial Real Estate Leases
When you rent commercial space, you will often be paying for more than the actual square
footage you will be occupying. A landlord can easily take advantage of someone who does
not understand the difference between a Triple Net Lease (NNN Lease) and Double Net Lease.
While the difference may not sound like much, and NNN lease is the worst kind of lease for
any tenant to sign as it almost always favors the landlord.
Here are articles that will not only explain the different types of leases, but that also explains
how rent and added costs, like Common Area Maintenance (CAM) fees are calculated:
Square Footage Formulas Used in Calculating Commercial Lease Rents: Why The Space
You Occupy is Not All That You Pay For
Common Area Maintenance (CAM) Fees in Commercial Leasing: 101
Commercial Leases - Square Footage Used in Calculating Commercial Leases
Average Percentage Rents Charged in Commercial Leases
How to Negotiate the Terms of a Commercial Lease
Once you have found the perfect space, you still need to make an offer, and sometimes a
counter offers to negotiate the best deal on a commercial lease. Never accept any offer
without asking for at least something better. It is standard and customary in commercial
leasing to negotiation - the landlord expects it and usually will inflate rent or fees in some way
expecting to come down a bit in price.
How to Negotiate CAM Fees in Commercial Leases: Common Area Maintenance (CAM)
fees are dreaded by most tenants, and misunderstood by even more. But CAM fees
are often negotiable. The larger the space you rent, the more likely you will be able to
negotiate CAM fees and any associated administrative fees. However, no matter how
small the space is, never accept the terms of any lease without asking for a better deal.
Get Initial Asking Terms in Writing: If a landlord or leasing agent simply tells you the
terms, ask for something showing the terms in writing before you submit a
counteroffer. If they are reluctant to offer a letter, ask for an email or a copy of the
listing for space (which will contain at least the basic leasing information).
Preparing An Offer or Counter Offer Letter: A counter offer should be presented from
your business, not from you personally, even if you own a sole proprietorship.It is
helpful to remember that an offer letter is a sales pitch. You are asking for different
terms than what was presented to you - terms that are more in your favor and you
want the landlord to see you and your business as a good choice worthy of
concessions.
Listing Your Leasing Terms in an Offer or Counter Offer: There are some key things you
should include in the terms of your offer. For example, you want to make clear the
rate you will pay, the length of the lease, renewal options, as well as list any build-outs
or improvements that you want the landlord to do, or, that you will do once you move
in, and, when you will move in.
If you need help preparing your offer letter, Women in Business has a Sample Offer
Letter that you can refer to as a guideline for putting your terms into writing.
Putting it All Together
Looking for space should be exciting and fun, not scary. Do not be shy about taking notes,
measurements or pictures of any space you look at. These things can help you research and
compare more options after you leave the site.
Perhaps the two most important things to remember are almost all leases are negotiable in
some way, and, commercial leasing is complicated and landlords expect you to ask a lot of
questions. In fact, when it comes to leasing, the more questions you ask, the more likely a
landlord is to deal straight with you.
Asking questions and being assertive will help you get the best deal. And when it comes to
signing the actual lease, if you do not understand something, it pays to get a lawyer or trusted
realtor to explain the terms to you.
IV. Things To Consider Before Investing In Commercial Property Newcastle
The commercial side of real estate can be an appealing proposition for any investor. It offers
you the ability to dip into a new pool of clients and grow your business interests. But, the
commercial side of real estate is also a different beast that requires some additional
considerations versus the residential side of the business.
Patience is a virtue with these transactions as the sales cycle is longer, requiring an investor
to remain vigilant with the market demand. But many indicators point to commercial real
estate as a strong choice for agents looking to move their business forward in 2018.
Ten members of Forbes Real Estate Council shared the one thing investors should be aware
of before getting involved with commercial real estate. Here is what they recommend:
1. Remember Everything Takes Longer
Compared to residential investing, everything takes longer. Due diligence is months instead
of days. Finding new tenants takes longer. Build out or renovation is longer. But the leases
are longer, as well. Patience is key. It just takes longer. - Roger Blankenship, Flipping America
2. Understand The Market
Investors need to understand the market they are investing in. Having a good wherewithal of
the fundamentals (legal implications, competition, vacancy, rents, etc.) will allow them to
make savvy investments that could yield high returns. This will enable investors to fine tune
their commercial real estate investments and diversify their portfolio. - Juan Zaragoza, Exan
Capital LLC
3. Consider Area Demographics And Trends
When investing in commercial real estate, the investor needs to consider demographics and
trends for the area. Do they play into the reason for investing? Do you plan to develop? If so,
find a local broker who understands the area and knows the playbook of the local
authoritative agencies. You will need to understand civil engineering and environmental law
in this playbook! - Rita Santamaria, Champions School of Real Estate
4. Assess Risk By Property Type
Risk assessment is very different in commercial when compared to residential real estate, and
varies greatly by property type. The success of two residential properties right next to each
other is typically similar, while commercial buildings in a similar position could fluctuate
independently, so it's important to understand the range of risks inherent to your potential
investment. - Nav Athwal, RealtyShares
5. Avoid Failing Businesses Or Business Models
If your tenants include restaurants, grocery stores, bars or business models that are migrating
online (like banks), you need to assume that they will default on their lease at one point, and
you need to prepare your insurance correctly to make sure you are covered when that
happens. Search for failing businesses and do your best to not deal with them as there may
not always be a golden parachute. - Kent Clothier, Real Estate Worldwide
6. Know The Time Frame For All City Approvals
After working with more than 75 different city jurisdictions for the overall city permit
approvals, I know it can take one month or even a few years prior to receiving a building
permit. Before buying a commercial property Newcastle, set up a meeting with the local
authorities to determine the required approvals — from planning and zoning, site plan, city
council, etc. - Pamela J. J Goodwin, Goodwin Commercial
7. Understand Market Trends' Impact On Demand
It's important to understand the dynamics of the property type you are selecting. For
example, if you are looking to invest in retail, consider the near- and longer-term impacts of
e-commerce on tenant and consumer demand. If you are looking at offices, consider how
trends like co-working and telecommuting could impact demand for office space in your
market. - Gary Beasley, Roofstock
8. Be Ready To Have An Active Role
Investing in commercial real estate is not a passive investment. The most successful investors
take a very active role. They have systems and processes in place to ensure that the property
is achieving its maximum operating potential. They are constantly keeping tabs on
development and economic trends in the local market, as well as broader economic trends. -
Jay Crotty, SkyView Advisors
9. Find Capital Or A Good Deal
To be successful in commercial real estate you need two things: capital or a deal. Currently,
the market is flush with capital and if you can find an attractive deal, the equity will be there
for you. If you don't have a deal and are worried about high valuations, finding a patient
source of capital should be your priority. Lining these two items up will give you the credibility
to be successful. - Brian Milovich, Calvera Partners
10. Consider CRE Debt Instead
Some investors aren’t aware there is opportunity to invest in real estate with less risk and
greater potential return than property ownership -- through investment in commercial real
estate (CRE) debt. With returns in the range of 8-10% and a stronger standing than property
owners in the event of a market correction, this opportunity is often overlooked by those
looking to dive into CRE investing. - Evan Gentry, Money360
V. Tips for commercial property Newcastle investment
Are you thinking of investing in commercial property Newcastle? Or do you want to know
what attracts someone to invest in commercial property?
Commercial property Newcastle investment isn’t always riskier than residential investment
and it can provide more cash flow. Adding commercial property to a portfolio can be a good
way of diversifying your investment.
Each investment decision is different but based on my 30 years commercial property
experience; here are my five key steps to get you started.
Get a great tenant and a strong lease
One of the cornerstones of a commercial investment is a great tenant. That tenant pays their
rent on time, looks after your property and is on a lease with good terms. A great tenant to
have is a bank or a strong national or multinational company; someone who is stable and has
capacity to pay. A tenant that is just starting a business may be more of a risk because a high
proportion of small businesses fail in the first year.
Know how to price a commercial property Newcastle
Commercial property prices are determined by two main factors.
Current Net Rental Income (Net Income) is basically the cash left over after property expenses
(council and water rates, insurance, land tax and repairs) are paid but before interest is
deducted (excluding any GST).
Rents are typically expressed in terms of rate per square metre. Generally, it’s the net rent
per annum (p.a) divided by the internal size of the shop or office. Use the rent per sqm p.a for
comparisons to other properties.
Market Yield (Yield) is a moving figure. The yield percentage is a reflection of the risk you take
purchasing the property. The higher the risk the higher the yield. A bank deposit is virtually
risk free and the interest rate or yield you get is about 2%. Commercial property has more risk
and currently yields around 6.6% for a good property (down from 7.9% in 2012).
Commercial property yields are also affected by bank interest rate changes. If bank rates go
up, commercial property yields increase. This in turn lowers the value of a commercial
property.
Attending commercial property Newcastle auctions can also give you a better understanding
of price. You’ll also gain experience in how bidding works and learn how not to bid more than
the value of the property.
Know the Market Rent
It’s very important to be realistic about the rent you can achieve from a property. Find out
what other properties are renting for in the area. Speak to the tenants, owners and valuers
and real estate agents.
Think long-term growth
Investment in property is not all about rent. A good commercial property provides both
income and capital gain. It is worth investigating how much your property is likely to rise over
the medium to long term. Look at historical and forecast rises for properties in the area as
well as properties of the type you are considering. Talk to agents and read property reports
to get this data. Economic and social factors driving demand for property are also key to
capital gain. These include population growth and demographic changes, interest rates, and
infrastructure development.
Speak to your lender
Financial institutions have different requirements when lending for commercial property as
opposed to residential property. Normally they lend a lower proportion of the value of the
property than they do for residential. Before thinking about investing, speak to your current
financial institution and other lenders to understand the finance options are available to you.
After considering all these tips, you can choose the best commercial property according to
your requirements.
For ex:
Buy Now!! Minimal 2 Bedroom Apartments Remaining
Property Features
Category : Land/Development
Land Area:2
Tenancy: Vacant
Property Description
Nestled in a boutique area, this remarkable release of 2 bedroom apartments consisting of 1
or 2 bathrooms combines vibrant beach side lifestyle, spectacular outlooks and uplifting
green landscapes with beautifully finished living spaces. Located in Whitebridge's growing
centre and just metres from the 15km Fernleigh cycle way.
Family friendly living and low-key opulence is the forefront of The Dudley Apartments
philosophy. It is a masterpiece of design and low maintenance living has never been so easy.
* Strong rent returns
* Depreciation schedules available
* Government Incentives when purchasing off the plan
For further details, visit here: https://www.commercialproperty2sell.com.au/details/buy-now-
minimal--bedroom-apartments-remaining.php
Currently the most affordable 2 bedroom apartment in Charlestown
Property Features
Category : Land/Development
Land Area:1012 Square Metres
Tenancy: Vacant
Property Description
Offering a selection of Studio, 1, 2 and 3 bedroom luxury apartments.
Featuring balconies and terraces perfect for entertaining, each apartment comes with it's own
secure parking.The gourmet kitchens are designed to maximise space and include two-toned
cabinetry, stone bench-tops with waterfall edges, and quality stainless steel appliances
including gas cook-top and dishwasher. The kitchen flows effortlessly into the open plan living
area, creating beautiful spaces for entertaining.
Optional upgrades are available and can be tailored to your needs, featuring oak timber
flooring and SMEG kitchen appliances. Your new lifestyle awaits.
Visit here for further details: https://www.commercialproperty2sell.com.au/details/grace-
apartments-a-new-benchmark-in-comfortable-convenient-living.php
VI. Pros and Cons of Investing in Commercial Real Estate
Any type of property, whether it’s commercial or residential, can be a good investment
opportunity. For your money, commercial properties typically offer more financial reward
than residential properties, such as rental apartments or single-family homes, but there also
can be more risks. Understand the full pros and cons of investing in commercial properties is
important so that you make the investment decision that’s right for you.
What Is a “Commercial Property?”
Commercial properties may refer to:
retail buildings
office buildings
warehouses
industrial buildings
apartment buildings
“mixed use” buildings, where the property may have a mix, such as retail, office and
apartments.
There are nuances to managing each of these types of properties. To paint a general picture
of what it’s like investing in commercial property, let’s examine the pros and cons of investing
in a single-story commercial retail building, such as a community “strip mall”.
Positive Reasons to Invest in Commercial Property
Here are some of the pros of buying commercial real estate over residential property.
Income potential. The best reason to invest in commercial over residential rentals is
the earning potential. Commercial properties generally have an annual return off the
purchase price between 6% and 12%, depending on the area, which is a much higher
range than typically exists for single family home properties (1% to 4% at best).
Professional relationships. Small business owners generally take pride in their
businesses and want to protect their livelihood. Owners of commercial properties are
usually not individuals, but LLCs, and operate the property as a business. As such, the
landlord and tenant have more of a business-to-business customer relationship, which
helps keep interactions professional and courteous.
Public eye. Retail tenants have a vested interest in maintaining their store and
storefront, because if they don’t, it will affect their business. As a result, commercial
tenants and property owner interests are aligned, which helps the owner maintain
and improve the quality of the property, and ultimately, the value of their investment.
Limited hours of operation. Businesses usually go home at night. In other words, you
work when they work. Barring emergency calls at night for break-ins or fire alarms,
you should be able to rest at night without having to worry about receiving a midnight
call because a tenant wants repairs or has lost a key. For commercial properties it is
also more likely you will have an alarm monitoring service so that if anything does
happen at night, your alarm company will notify the proper authorities.
More objective price evaluations. It's often easier to evaluate the property prices of
commercial property because you can request the current owner’s income statement
and determine what the price should be based on that. If the seller is using a
knowledgeable broker, the asking price should be set at a price where an investor can
earn the area’s prevailing cap rate for the commercial property type they are looking
at (retail, office, industrial, etc.). Residential properties are often subject to more
emotional pricing. See the Nolo article Is that Residential Real Estate Investment
Property Worth It? for more on the subject, including an explanation of cap rates.
Triple net leases. There are variations to triple net leases, but the general concept is
that you as the property owner do not have to pay any expenses on the property (as
would be the case with residential real estate). The lessee handles all property
expenses directly, including real estate taxes. The only expense you’ll have to pay is
your mortgage. Companies like Walgreens, CVS, and Starbucks typically sign these
types of leases, as they want to maintain a look and feel in keeping with their brand,
so they manage those costs, and you as an investor get to have one of the lowest
maintenance income producers for your money. Strip malls have a variety of net
leases and triple nets are not usually done with smaller businesses, but these lease
types are optimal and you can’t get them with residential properties. For more on
common lease terms, such as net leases, see the Nolo article Commercial Leases:
Negotiate the Best Terms and related articles in the Business Space and Commercial
Leases section of this site.
More flexibility in lease terms. Fewer consumer protection laws govern commercial
leases, unlike the dozens of state laws, such as security deposit limits and termination
rules, that cover residential real estate. For more on commercial leases, see the Nolo
book Negotiate the Best Lease for Your Business, by Janet Portman and Fred Steingold.
The Downside of Investing in Commercial Property
While there are many positive reasons to invest in commercial real estate over residential,
there are also negative issues to consider.
Time commitment. If you own a commercial retail building with five tenants, or even
just a few, you have more to manage than you do with a residential investment. You
can’t be an absentee landlord and maximize the return on your investment. With
commercial, you are likely dealing with multiple leases, annual CAM adjustments
(Common Area Maintenance costs that tenants are responsible for), more
maintenance issues, and public safety concerns. In a nutshell, you have more to
manage; and just as your tenants have to worry about the public eye, you do as well.
Professional help required. If you are a do-it-yourselfer, you better be licensed if you
are going to handle the maintenance issues at a commercial property. The likelihood
is you will not be prepared to handle maintenance issues yourself and you will need
to hire someone to help with emergencies and repairs. While this added cost isn’t
ideal, you’ll need to add it on to your set of expenses in order to properly care for the
property. Remember to factor in property management expenses when evaluating
the price to pay for a commercial investment property. Property management
companies can charge between 5-10% of rent revenues for their services, which
include lease administration. Evaluate beforehand if you want to manage leasing and
the relationships yourself, or if you want to outsource those responsibilities.
Bigger initial investment. Acquiring a commercial property typically requires more
capital up front than acquiring a residential rental in the same area, so it’s often more
difficult to get your foot in the door. Once you’ve acquired a commercial property, you
can expect some large capital expenditures to follow. Your property might be
humming along for a few months and wham, here comes a $10,000 bill to address
roofing repairs or a new furnace. With more customers there are more facilities to
maintain and therefore more costs. What you hope is that the gains in revenue
outweigh the gains in costs, to support purchasing a commercial property over a
residential one.
More risks. Properties intended for commercial use have more public visitors and
therefore have more people on the property each day that can get hurt or do
something to damage your property. Cars can hit patrons in parking lots, people can
slip on ice during the winter, and vandals can spray paint the sides of the building.
Incidents like these can occur anywhere, but chances of experiencing something like
these events go up when investing in commercial properties. If you're risk adverse,
you may want to look more closely at putting your money in residential properties.
VII. Conclusion:
If you’re thinking of entering the property market, but don’t know where to start, follow the
above mentioned points to better understand the process and considerations involved.
VIII. References:
Marc Terrano. (2019) The beginner’s guide to property investment| finder. Retrieved from 13
June,2019
https://www.finder.com.au/the-beginners-guide-to-property-investment
Ashwini Kumar Sharma (2018) When it makes sense for you to invest in commercial property|
livemint. Retrieved from 13 June,2019
https://www.livemint.com/Money/IPQvKo1HYuZVzBkzCHcaXO/When-it-makes-sense-for-you-to-
invest-in-commercial-property.html
Lahle Wolfe. (2019) How to Find The Best Commercial Space For Your Business|
thebalancecareers. Retrieved from 13 June,2019
https://www.thebalancecareers.com/how-to-find-the-best-commercial-space-for-your-business-
3515431
Forbes Real Estate Council. 10 Things To Consider Before Investing In Commercial Real Estate
| forbes. Retrieved from 13 June,2019
https://www.forbes.com/sites/forbesrealestatecouncil/2018/01/29/10-things-to-consider-before-
investing-in-commercial-real-estate/#45eee4833b7f
Scott Walkom. (2015) 5 tips for commercial property investment| hunterheadline. Retrieved
from 13 June,2019
https://www.hunterheadline.com.au/hh/expert-article/5-tips-for-commercial-property-investment/
Commercialproperty2sell. Commercial real estate for sale in Newcastle | Retrieved from 13
June,2019
https://www.commercialproperty2sell.com.au/for-sale/nsw/newcastle/
Matt Larson. Pros and Cons of Investing in Commercial Real Estate| nolo. Retrieved from 13
June,2019
https://www.nolo.com/legal-encyclopedia/pros-cons-investing-commercial-real-estate.html