If you’ve always dreamed of investing in commercial real estate in the romantic, windswept province of Nova Scotia, you may be confused as to how to start. Real estate, while incredibly lucrative, can seem difficult to break into, especially as there are so many different strategies and possibilities, not to mention a varied array of locations to consider within this maritime locale.
Today, we’ll discuss some common strategies for investing in commercial real estate. With a better understanding of how to invest and where to find good properties, you’ll be ready to consider your next step toward becoming a commercial real estate tycoon.
There are four major investment strategies for commercial real estate
As mentioned before, real estate investment is incredibly complex, but there are four basic strategies that you should consider when you start looking to purchase a commercial property. From least risk to highest risk, these are REITs, buy and hold, value add, and development.
REIT stands for Real Estate Investment Trust, and it is the safest of these four strategies. In essence, you are investing in a portfolio of different real estate properties rather than actually buying and owning them yourself. This functions much like buying shares on the stock market, and it allows you to enjoy some of the dividends without the riskier components of real estate investment.
Buy and hold is exactly what it sounds like you buy a commercial real estate property and hold onto it for a long period of time, potentially decades. This allows you to slowly recoup the initial investment through rental income, and you’ll also enjoy the appreciation of the real estate market that will add value. This is for people who are willing to play the long game, but who are also less risk-averse than those who only want to purchase REITs.
Value add means that you purchase a “fixer-upper” property and improve it so that its market value improves. You’ll improve the property, then command a higher rental price or sell it for a profit. This is sometimes known as “house flipping” on the residential real estate side, but it’s also possible to do this for commercial real estate.
Finally, the riskiest of these four strategies is development, when you purchase a bare lot of land and build a commercial property on it. This can either pay off wonderfully and you’ll have a great income generator, or it can fail and you’ll be in a great deal of debt.
If you want to do more than just purchase shares of a property, but you don’t want to actually construct a brand new building, you can invest in an existing commercial property. This is where it’s time to start looking high and low for a beautiful building within gorgeous Nova Scotia – and thankfully, there’s plenty of help with this aspect of investing as well.
If you’re ready to take the leap and purchase a commercial property, you can begin your search online
Though Nova Scotia is small compared to some of Canada’s other provinces, there are still many amazing places in which to invest, such as Wallace or Halifax. This means that there are plenty of commercial properties on the market, and it can be overwhelming to consider hunting each of them down.
Thankfully, online real estate marketplaces make it incredibly easy to find a commercial property for sale in Nova Scotia. You can search for the entire province or dedicate your search to a particular town, like Wallace, Nova Scotia, and examine a variety of listings to narrow down your search. This saves you a great deal of time, and it allows you to focus on the most important aspects of purchasing any commercial property: performing your due diligence to determine that your money will be well spent.
Through a real estate marketplace, you’ll be able to contact multiple sellers and get more details about their commercial property, such as its average rental income, its yearly maintenance costs, and its specific location. With this information in hand, you can begin to compare the different properties you’ve selected as potential winners and determine which one has the best potential to offer a great return on investment. You’ll have all the details you need to make an informed decision, which allows you to focus on other components of buying commercial real estate, such as securing financing and contacting potential tenants.
Final thoughts
Commercial real estate is one of the best investments available, as it has options for everyone depending on their price point and risk tolerance. There are four major strategies for investing, from buying shares in a real estate trust to developing one’s own property. If you’re looking to either buy and hold a property or to add value to an existing property, you can find plentiful commercial real estate options through real estate marketplaces, which will show you numerous options within sea-swept Nova Scotia.
Now that you have a better understanding of how to invest and where to find properties, it’s time to jump in and get immersed in the world of commercial real estate investment. Within no time, you’ll find yourself the proud owner of a beautiful property within this gorgeous maritime province, certain to provide you great value for years to come.
