The property industry has been extremely sporadic over the last few years, just like the finance industry. The thing is commercial property has suffered considerably.
Commercial property in need of renovation can now be found at rock bottom prices. Some properties that have gone to auction have been sold for around 60% of their actual predicted value. If you are looking for a new commercial property or you want to create a commercial rental portfolio, then this could be the right time. If you are getting involved with a renovation, then follow this guide.
Market Research
The first thing you need to do is actually find and buy a property. Don’t just jump on the first deal that you see. There are hundreds of properties to choose from. Estate agents will always push you into a sale, but understand that there will always be another property.
If you want a particular property in terms of size and/or location then make sure you wait around for it. Take into account local property values, rental values and the costs associated with the renovation before making a purchase. If you want the best deals, auctions can sometimes yield some great results.
Planning
So, you have what you consider to be your dream property? The next step is to start planning the renovation. When you are planning a renovation you need to take into account every little detail. A lot of people that are renovating properties for the first time miss out on certain details which mean they end up without a big enough budgets.
They have monthly repayments to meet, yet they are not able to actually complete the property. Before you even purchase the property, you need a mock plan to ensure that this is really a project that is suitable.
Contractors
In order for projects to run smoothly and to be completed to a high standard, contractors are going to be needed. Contractors come in all shapes and forms including gas engineers, carpenters, carpet fitters and plumbers. You need to determine which jobs can be done by labourers and which jobs need an expert’s touch.
Although the prices offered by contractors might seem high, remember that they will work a lot faster than labourers or you and complete the job to a much higher standard. Always try and get 3 quotes for each job that needs doing. This will ensure that you don’t overspend when it comes to paying trades people.
Analysis
Before work even begins you need to do some analysis on the building. If a renovation project is in need of a mortgage, you might have already had a survey. Don’t think that this means that your building will last for decades to come. What you need is a more in depth analysis using technologically advance tools. For instance, the tools on offer from structurescan.co.za enable people to identify leaks, the thickness of piping and if there are any structural problems with a building.
Alex is an online blog writer and has been one for over 5 years now. Since he initially started his own blog in 2007, he has been asked to write over 100 pieces on dozens of blogs throughout the internet. The topics he has covered so far include commercial property, personal finance and small business marketing.