Focus Points for Purchasing Your Next Investment Property

When you are ready to purchase a commercial or retail property in Brisbane, you can do some specific research and set some targets that will help you move in and onto the ‘ideal’ property zone, suburb, or property type.

August 22, 2018

When you are ready to purchase a commercial or retail property in Brisbane, you can do some specific research and set some targets that will help you move in and onto the ‘ideal’ property zone, suburb, or property type.

Planning like this will help you prepare for that next acquisition; you can also minimise the ‘mistakes’ that could otherwise happen in the negotiation or purchase.  Preparation is the key.

Don’t wait for the ideal property investment to appear on the internet, or in the newspapers.  Many property transactions are achieved ‘off market’, and thereby away from the prying pressures and or the negotiation confusion of other parties and buyers.  You can work with a specific agent or broker that has a good knowledge of the property market, and they can set about finding the ‘ideal investment’.  Be patient and set your targets for the next purchase.

One of the best ways to purchase an investment property in and around Brisbane is to firstly ‘prepare’ your thoughts and do some research on what has been happening and what is available.  From that investigation, you can set some specific property targets, investment criteria, and have your finances prepared for the situation(s) where you may find the ideal property.

Here are some key points of focus to help you prepare for the next property purchase or portfolio change in your commercial and retail investments:
  1. Choose a property type that you know and appreciate – Don’t invest in properties that are too hard or complex for you to understand or shape over time.  Most property investments only take shape through ongoing lease changes, tenant mix enhancements, and negotiations.  Be prepared for that action and focus.  To get started with ideas, look at the established suburbs and the ‘strips’ or ‘precincts’ of properties on main roads such as those in Indooroopilly, Milton, Mt Gravatt, and Springwood.  Take a walk through the ‘prime property zones’ along the main roads, take some photos, and then do your research.  Soon things will start to take shape as to the ideal property type for you.  Set your criteria when it comes to price, timing, value, and tenant mix types.
  2. How long do you want to hold the asset? – You should have an investment plan, and from that plan, you can set the ideal ‘holding’ cycle for the investment.   Do you like to hold for the long term, or are you looking for growth and change as you move through your property investments?  Your lease negotiations will set on or by your ‘property holding intentions’.
  3. Investigate prices and rents – these numbers are important because they will impact your returns and your growth of value.  Look at the property trends for the area and the property type(s) that you prefer.  Don’t move your investment attentions into a property type that is redundant unless you have a ‘change strategy’ that you can work to and afford.
  4. Understand vacancies – there will always be ‘vacancies’ in the retail and commercial property arena.  The important factor here for you to understand and work with is the rate of vacancy change and the expected factors of occupancy into the future with the property and or the property type.
  5. Look at yields and cap rates – rents, incentives, and prices will impact the yields that you can expect from your property over time.  Look at the trends last year and the expectations of the coming year when it comes to these valuable indicators from the property market.  Brisbane and the suburbs will have ‘pockets’ of prime property and value that will suit your investment targets.
  6. Property running costs – when you own an asset, be that retail or commercial, there will be running costs, so the lease rent structures should be examined for property outgoings recovery.  Look at the net income for the property from the existing leases and the tenant mix.
  7. Get a property solicitor that is prepared to help you in your negotiation – a good property solicitor can help you with your investment planning when it comes to the property type.  That legal advice can prepare you for the types of rents, types of properties, and the negotiation that would be ideal for your investment targets.
  8. Find a quality broker or agent that has knowledge and market dominance – given your awareness of all the previous factors, you can find a quality broker or agent to service your property need(s).  They can look around the market; they can also act specifically for you as you look for that next property.
Simple facts like these will help you find that next commercial or retail property to purchase in Brisbane.  These factors of preparation can make things a lot easier for you and prepare you for the purchase.