Investments in commercial properties are not only huge but also come with numerous nuances attached, which is why they must be given serious attention. Someone planning to invest in commercial real estate property while aiming at high returns on investment, needs to advance with a good strategy.
So to help you guide in the right direction, here are a few mistakes that investors make with respect to commercial properties that you must steer clear of –
Not evaluating the property correctly
Incorrect property evaluation is a common yet significant mistake that investors make with respect to commercial projects in India. Rushing matters without proper caution with respect to property value assessment can impose huge financial losses on you.
Browsing through available commercial properties and comparing the prices is the key to a successful investment.
Not going through ownership documents in detail
False information, errors and other ambiguities in ownership documents have often been served as base of serious disputes between buyers and sellers. Investors need to understand that skipping out on ambiguous details in the agreement due to lack of clarity can cost them heavily.
You must always get these documents evaluated by well-versed and experienced legal counsellors to save yourself from falling victim to any real estate fraud.
Not checking the building compliance
Not many investors put ‘ensuring building compliance’ in their checklist before they invest in a commercial property. Real estate projects that are non-compliant to municipal building codes in the country are not unheard of.
Investing in one such property could expose you to various legal hassles at any point of time, which is why before you finally invest in some property; get it properly verified by architects/contractors.
Skipping out on background checks
The real estate market often remains abuzz with news of builders flouting norms, going back on promises or cheating clients of their money. When it comes to trustworthiness, even a brand name alone doesn’t suffice.
Making sound checks into the background of a builder can save you from a lot of hassles and losses, later on. Going through the company’s website, learning of their previous projects, getting in touch with old clients are a few ways you in which you can do that.
When it comes to commercial real estate investments, even a minor detail can create a big difference, so stay aware and follow the standard diligence procedures.
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