INVESTING IN RETAIL PROPERTY: YAY OR NAY?
When
people decide to invest in property, they may think of buying a house, condo,
or apartment as a stable and reliable property investment.
I’m sure many people instantly think of
shopping the moment the word ‘retail’ is mentioned. But there’s more to retail
than just shopping.
The retail sector is one important
component of the commercial world. So when it comes to property investment,
retail property is a good option that offers steady yield and capital growth.
Check out a few of the important factors to
consider first before you invest in retail!
- Location, Location, Location
- The saying’s a cliché but location is really very important.
- You should consider retail property that is easily accessible and convenient for the shoppers to get to.
- You need to consider the property’s surrounding location as well.
- Is there a lot of foot traffic? High visibility from the road, highway? Are there any residential areas nearby?
- It’s better to find a unit that is positioned in a well-established area that already has fast-food outlets, F&B shops, banks ,and other amenities.
- Remember to check the whether parking space is adequate or not – this can really affect customer flow.
- Are you investing for the long-term?
- Take note that retail property gives you long-term gains. Think: annual returns.
- When you rent out your shop unit to retailers, generally most retailers will sign long leases as they are doing business for the long term.
- Thus, this benefits you, the investor, the stability through long-term capital investment
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