The real estate market in Woodinville (and everywhere else in the Puget Sound area) is booming, with rental rates skyrocketing, and purchase prices higher than they’ve been in years. But does that mean that investors have to spend big on properties only to have to wait years longer in order to break even? Not really. While rentals are a sure sell, and are pretty much guaranteed to sell, there’s another area of Woodinville’s market that’s open for investing. Commercial property prices are lower than they’ve been all year, and it could be the time to invest. Consider this advice from local Woodinville property management company SJA Property Management to see what you’re up against.
Investing in Commercial Property
Commercial property is a great way to invest, although it can be slightly riskier than investing in residential property. Commercial properties include stores, office buildings, storage, retail units, warehouses, and more. These units are valuable to people who want to make a profit themselves, but can take longer to fill because they are more of an investment. On the other hand, most commercial property renters sign a lease contract for 2 to 10 years, meaning that you have a longer guarantee of a tenant.
Why Now?
Rental units, houses, and multi-family housing is decreasing in availability, increasing in price, and facing a rising demand. Buying one means stiff competition, high prices, and usually a long wait to even break even, let alone making a profit. On the other hand, many people are ignoring commercial properties right now, and prices are at their lowest since the start of the year. Demand is down, as is competition, so it’s a great time to get in on the market.
Getting Started with Commercial Property Investment
If you’re ready to get started with commercial property investment then take your time. There are plenty of units out there and you want to choose one with a great location and great potential. Remember to factor cost, repair cost, advertising, and potential use into any purchase, because it will affect your profit a great deal. For example, buying an old warehouse for next to nothing might seem like a good idea, but if you spend too much money fixing it up, you’re taking more time and spending the same amount of money you would on a newer building.
Once you get the right unit, your best way to make a profit is to fix it up, and get it on the market as quickly as possible. A Woodinville property manager can help you advertise and get your new commercial property off the ground by filling units more quickly, so that you start making money.
Remember that commercial property management is not for everyone, and it is a much higher risk than residential property, but if managed right, can be just as profitable. Your best bet is to take your time, choose your investments wisely, and pick something that will hopefully become more valuable with time.