As with every investment, real estate investment also has risks. How will we reduce the risk of investing in real estate in the purchase of shops or stores? What should we pay attention to in order to survive the problem? Is a shop or store investment an attractive investment to turn cash when we're stuck? What should be considered when purchasing a shop or shop, what are the risky subjects?
Investment in commercial real estate is one of the best investments because it makes premiums and increases value and brings rent. The rental income of the commercial real estate is higher than the house and the maintenance costs are lower. In the long term, the value increase of a shop is higher than the housing. You also will not pay the income tax that you will get because the withholding on commercial property is paid by the tenant. The risk is that every investment exists, it is important to reduce the risks most you will receive.
How is the location of the shops or stores?
"What are the 3 most important things in real estate?" Question is used to emphasize the importance of location, the response is shudder: "location, location, location". The most important element for a shop or store is its location, so you should have it on a pedestrian road in a district where the shop's pedestrian mall is populated. In addition, the income level in this region is very important. In the long run, the increase in value determines investments and infrastructure projects that will provide population, pedestrian traffic and income growth in this location.
Is it projected as a workplace?
Does your purchase look like a shop on the shop floor? Many houses are sold after being turned into shops and then rented. While this situation is not a problem in some sectors, some sectors have problems in the license phase. It is designed as a business place, and it is easy to sell if you want to find a tenant or sell it. Title deed indicates that the shop is suitable for the project and increases its value. Check whether the warehouse or basement that appears to belong to the real estate is really registered in the deed. Once in some shops, the basement or other departments join the shop, which can lead to the deterioration of the property. Also, before buying the shop, find out if there is any comment on the real estate from the Land Registry Department and the Municipal Land Registry Department.
Do you have a pre-use area on the garden side?
The right to use the garden or the front area adds value to the property and helps to attract different tenants. Examine the management plan to determine whether the right to use such areas belongs to the shop.
Where are the columns?
Visible columns on the shopfront and inside the shop can block workflow. Evaluate how these columns affect presentation and visuality in the display and the shop floor, because large areas without columns facilitate workflow and visual layout, thus increasing value.
Do you have a chimney?
The chimney in the workplace also allows the food industry to use it. Adding chimneys later is both costly and can be problematic due to the objections that may arise from other floor owners. If there are no alternative workplaces in the vicinity, you can buy the chimney in the shop and increase the rent and sales price.
Is it earthquake resistant?
If you are going to buy a recently constructed place, check that the building is built according to earthquake regulations.
How much is the rental income?
The most important factor for investing in commercial real estate is rental income. The return period of investment returns in Istanbul is lower than in residential real estate. The amortization period shows how many years the sale price can be met when the purchased real estate is rented. The shorter this time, the more attractive the investment is. In the recent past an average multiplier of 200 rents was considered reasonable for the duration of the depreciation of commercial real estate. While it is impossible to buy real estate with this multiplier in places like Baghdad Caddesi and Nişantaşı where there is no alternative, there are many places with lower multipliers in the new developing regions. The recent slowdown in the economy and the drop in vacancies and rents in commercial real estate is the subject. Investors are also targeting depreciation periods of 12 to 13 years due to these conditions.