It might be tempting to buy a commercial space for rent in Cavite because of the greener pastures on the side of the real estate fence. It is not only in Cavite as the entire country enjoys the 6.9% GDP growth it has achieved in the first quarter of 2016. According to Trading Economics’ report, real estate, renting and business activities have an overall share of 11% of total GDP. The future is bright in real estate but if you don’t play your cards right, you could suffer from costly mistakes.
Don’t get into the hype just yet and buy a for rent commercial space in Cavite; there are so much property investment mistakes you must first learn about so you can avoid them:
Your property is not in the right zoning
What is zoning? It is a “legislative process that divides privately-owned urban areas into different zones (such as residential, commercial, industrial) according to the specified land use,” as defined by the BusinessDictionary.com. For this instance, it should fall into commercial zoning. Check this one first because choosing an incorrectly zoned property may prohibit expansion or growth of your business and make you possibly end up with court drama. Study first the zoning ordinance in Cavite before you search for a for-rent commercial space.
Be a know-it-all buyer
Whether you’re a first-time rookie or a veteran in real estate investment, you should update yourself on the latest trends and regulations regarding your industry. As the Landlord Protection Agency puts it, “the more knowledge of investing techniques, financing, acquisition, negotiating and, of course, your local marketplace, the less risky your investments will be.”
No cash reserves
According to Investopedia, it “refers to the money a company or individual keeps on hand to meet its short-term and emergency funding needs.” In other words, it is money reserved for the ‘rainy days’ of your business. You can use this in case an immediate repair is needed, for example.
Not asking for help
In the same vein that you can’t know-it-all, you can’t do it all as well. Not unless you’re a multi-talented person and not just a mere jack-of-all-trades guy, then maybe you can be an accountant, lawyer, commercial broker and mortgage broker all at the same time. Form a dream team that will help you purchase an investment-worthy property. Don’t go it alone.
Ignoring the fact a property is subject to deterioration
You should plan for the future and this includes the upkeep of the property. Things like gutter cleaning, painting jobs and replacing doorknobs or lighting fixtures should be considered. The commercial space for rent in Cavite you’ve bought will never retain its tip-top condition for a lifetime. Better be prepared for repair and maintenance of the property because this is exactly where cash reserves will come in handy.
Buy a property first then plan later
This is a backward kind of thinking. What if the for rent commercial space in Cavite you’ve acquired is not fit for the type of business you’ve chosen? Or worse, the convenience store you’re planning to put up is not going to work out because there is one in every two blocks. Plan ahead and find a property that would work well with your plan.
You can become rich overnight
This cannot be any more untrue. According to InvestPlus Properties, “the people who have made money in real estate have done so by keeping the property in their portfolio for ten or twenty years… You have to become educated about real estate, and you have to have the patience to hold onto it for a period of time.” So, don’t be duped by real estate “gurus” who feed you lies about real estate being the fastest big buck you can make. It is still all about hard work and it still will take time.
The weather in real estate is not always fair. Any experienced investor is aware of this and that is why they’re ready in case problems storm surge in. You might, unfortunately, bump into one or two of these real estate investment mistakes but as long as you’re well-equipped with proper knowledge and always practice due diligence in every transaction you come across, you will surely ace this business endeavor.
