The Things You Need to Consider Before Investing in Mixed-use Property

7 Secrets Real Estate

As an investor in properties, you can choose both commercial and residential type of investment property. There are many advantages when you choose commercial and residential building as your type of investment property.

Mostly, developer or/and investor of commercial and residential type building will offer the building to tenants. In each unit consisted of some floor for commercial use and another floor to reside. Commercial properties cover office building, hotels, shopping centers, manufacturing facilities, apartment complexes, or any other commercial purpose Then mixed-use property will create the upper floor as residential units.

Mixed-use Property
Mixed-use Property

Despite this type of investment property offers you with many advantages as investor, but you need to research many things before deciding. First you have to study whether the location of your property is best used as a commercial purpose.  You cannot randomly invest on some property to be used both in commercial and residential. When the location and the condition of the property doesn’t support for any commercial use.

Commercial zoning

It means that you need to carefully research the commercial zoning in the city. Placing the properties as commercial use in a commercial zoning will give you more award as the rental fee will be higher.

Second, and this is the most important one. When you invest in some commercial and residential type of property, commercial factor is the most thing that will affect the tenants. Thus if you build the commercial properties in a land or in a place where is still developing, you must have good skill to analyze whether this place will turn into commercial zoning. Or at least, have commercial potential in the future.

Mixed-use Property
Mixed-use Property

I have seen many developer and investor in commercial property failed to predict the future of the place where they build the properties. They built a two floor building such as retail store with upper floor being used as residential units. Yes, this building is built on a street which commonly used as a route to go to other city, but unfortunately, there are not many travelers who interest to come by and buy something in this place.

Due to lack of customers, the tenants cannot survive for any longer. They still have to spend more money since the price is set as commercial utilize. While in fact, the property is not more than residential unit since the retailer store doesn’t worth as commercial purpose. But beyond all of these, commercial and residential properties offer you more income potential.

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