Real Estate Investing Guide for Beginners in

Newcastle Riley

University of Newcastle

Abstract

Property investing can be a good way to build your wealth, but it carries a certain degree of

risk. Before making a property investment purchase, you need to carefully evaluate the

benefits and risks to decide whether or not it will be a viable investment for you. By

consulting professionals or asking yourself questions, you can undertake a self-assessment

to identify how much risk you’re willing to endure.

I. Introduction

Investing in property is about creating wealth and achieving capital growth, so selecting a

property that is likely to appreciate over time and also buying at the right price are important

decisions. By researching the market carefully, you can try to find an opportunity to purchase

a property below its real market value. Here you will find all the details.

II. When it makes sense for you to invest in commercial property

Newcastle

Unlike residential property, commercial real estate is witnessing steady demand and increase

in prices, say various reports. We asked experts if retail investors should consider the segment

for investment

For retail investors, the key considerations for investing into commercial assets should be

thorough assessment of their risk appetite, investment horizon and the purpose of

investment (rental return, long-term investment and diversification).

In addition, location of the project, micro market performance, project quality, lease

covenants (rent, escalation, lock-in period, etc.) and benchmarking should be part of the due

diligence process. Also, one should see whether the micro market is preferred by a diverse

occupier mix or a specific industry. This is particularly useful if the investment is in an

upcoming commercial project with no pre-leasing activity.

At the end of the day, it is a trade-off between risk and return. Stable income-generating

office assets should be preferred for regular income stream needs, while some risk can be

considered for upcoming projects based on risk appetite. It’s a strict no-no for small investors

wanting to buy a small space

Currently, the commercial market is on an upswing with strong demand momentum and

leased options are at a premium.

Tarun Birani Founder and CEO, TBNG Capital Advisors

Real estate as an asset class created wealth but it has its own complexities in terms of higher

ticket sizes, liquidity issues, transparency and maintenance, among others. Compared to the

residential market which has been in a tough phase in the last four years, commercial real

estate offers better appreciation and rental yields, but it requires financial abilities, sufficient

market knowledge and longer holding capacity.

Options available to participate in commercial real estate can be shops, offices, land parcels,

private equity funds and real estate investment trust (Reits). Among these options, Reit

appears to be the best for retail investors as it addresses the challenge of dealing with a large

ticket size as well as transparency. Owning your own shop, office or land requires higher ticket

sizes as well as proper due diligence in terms of legal and future market outlook which is

difficult to do at the retail level.

Before you succumb to the lure of higher rentals in commercial real estate, keep in mind a

few factors.

What is your overall allocation to physical assets as compared to financial assets? The former

certainly have the disadvantage of illiquidity—use physical assets to meet goals that are at

least three years away, so you are not forced into a distress sale to meet your needs. Have

you factored in non-occupancy? The rental returns are higher when they are paid; do you

have the financial muscle to hold on, when the tenant vacates the premises? Operationally,

do you have a system in place to locate new tenants and negotiate terms? Even if you have

all the right boxes ticked, how will you protect against the risk of a new centre coming up

nearby which has all the facilities of the existing property with a few additional amenities

which change the equation completely?

You could go ahead with your investment in commercial real estate after taking into account

these factors (and more).

Against a prolonged stillness in the residential real estate market, the commercial assets have

been performing well in the past couple of years. It’s becoming popular among not just

institutional and HNI investors, but also increasingly among retail investors. Commercial

properties yield 8-10% in major commercial markets depending on factors such as location,

demand-supply dynamics, quality of asset and maintenance.

The commercial market is forecast to remain robust with about 35 million sq.ft of average

absorption in the next couple of years. If you have an appetite for commercial real estate and

are looking for long-term investment, this is the right time to invest.

The investment can be more advantageous than investing in residential real estate, but it is a

little trickier as well. Good quality leased assets at emerging locations make more sense for

retail investors as it alleviates the risk of construction delays, quality of tenants and vacancy.

The investment in under-construction property can be extremely rewarding but it requires a

lot of patience and comes with more risks.

III. How to Find The Best Commercial Space For Your Business

There are many types of commercial spaces that you can rent and many things to consider

before signing a lease. The type of space you rent can affect the type of lease, the price per

square foot, and the wrong location can hurt your business, while the right type of space and

location can help your business to grow.

What Types of Commercial Properties Can Businesses Lease? Should you rent space

in a business park, industrial park, or retail location? Different types of commercial

real estate properties all have pros and cons. Learn how to determine what type of

space it makes the most sense for your business.

Commercial Industrial Spaces - Things to Consider When Leasing: Commercial

industrial space can also be used in place of traditional commercial office space,

usually at substantially cheaper prices. There are pros and cons, advantages and

disadvantages to leasing commercial industrial space.

Pros and Cons of Subleasing Commercial Spaces: Commercial subleases offer pros and

cons to business owners. Before you sign a sublease, be sure to weigh the advantages

and disadvantages of subleasing commercial space.

How to Find Available Commercial Spaces for Lease

Do Some Homework Before You Look at Space

Before looking at business space make a checklist that details and ranks your needs and

priorities before you see any space. It is easy to get excited about how a space looks and

overlook drawbacks. An experienced landlord or realtor will pick up on your enthusiasm for a

particular space and may hard-sell you to make a quick decision or be less flexible in

negotiating lease terms.

Having a checklist of questions to ask about the lease is also important because commercial

leases can be very complicated. A checklist of leasing questions will help you remember what

to ask so that you will have enough information about the terms to research more about the

type of lease being offered to you.

Checklist for Leasing Commercial Office, Retail, and Industrial Properties: When it

comes to selecting a location for your business you need to think things through. Make

a checklist before looking at commercial spaces of all the things that your business

needs to succeed and take it with you. If you have not already written a technical

feasibility study, consider doing so. A technical feasibility study can help you think

about, plan, and address all the needs of your business that need to be considered

when leasing commercial business space.

Glossary of Leasing Terms and Definitions: Before you start tackling commercial

leases, take time to become familiar with basic leasing terminology. For example, it is

important to know the difference between "usable square footage" and "rentable

square footage." In most commercial leases, you pay for more square footage than

you actually occupy.

How to Write a Technical Feasibility Study: Writing a technical feasibility study can

help you thoroughly consider and plan for all your present and future business needs

when it comes to the space you need.

Types of Commercial Leases and Common Leasing Terms

Types of Commercial Leases: Compare the types of commercial leases commonly used in

commercial real estate in an easy-to-read chart.

The two most common ways to lease office and other commercial spaces include:

Lease: In a standard tenant-landlord lease you are the main business (or individual)

named on a lease with the landlord.

Sublease: A sublease is when an individual or other business already has a lease with

a landlord, but subleases (rents out) a portion of the space their space to you.

Sublessors cannot transfer rights to sublessees that are not in the original lease or if

the original lease prohibits subleases.

Pros and Cons of Subleasing: Commercial subleases offer pros and cons to business

owners. Before you sign a sublease, be sure to weigh the advantages and

disadvantages of subleasing commercial space.

Understanding and Negotiating Commercial Real Estate Leases

Commercial leases are complicated and are very different from residential leases. Before

signing any commercial lease you need to know what questions to ask, and how to rent, load

fees and other added fees are calculated. Armed with knowledge you can negotiate the best

deal possible!

Women are just as capable of negotiating a good deal in commercial leases as men are but

negotiating starts with asking the right questions.

Once you have answers to certain questions, you can research more about types of leases,

leasing terms, negotiating commercial leases. You will also be better able to plan your

finances, and your negotiation strategies if you know what questions to ask.

Question #1: What Type of Commercial Lease is Being Offered? The type of lease being

offered is probably the most important thing to consider first because it determines

how you will be charged rent. The terms of commercial real estate leases are defined

by the type of commercial lease.

Question #2: Are the Terms of the Lease Negotiable? All commercial leases should

always have at least some room for negotiation, no matter how small. A completely

inflexible landlord is generally not someone you want to lease from because

"inflexible" often equates with "unreasonable."

Question #3: What Insurance Coverage Does the Lease Require Tenants to Purchase?

Few business owners new to commercial leasing will look beyond their actual monthly

rent and utility costs when determining if a space is affordable, but you also need to

consider your insurance costs. Moving from a home-based business into "brick and

mortar" space will cost you more to ensure your business because, in addition to your

own insurance needs, your landlord will probably require you to purchase insurance

to protect him/her as well.

Terms You Need to Know to Understand Commercial Real Estate Leases

When you rent commercial space, you will often be paying for more than the actual square

footage you will be occupying. A landlord can easily take advantage of someone who does

not understand the difference between a Triple Net Lease (NNN Lease) and Double Net Lease.

While the difference may not sound like much, and NNN lease is the worst kind of lease for

any tenant to sign as it almost always favors the landlord.

Here are articles that will not only explain the different types of leases, but that also explains

how rent and added costs, like Common Area Maintenance (CAM) fees are calculated:

Square Footage Formulas Used in Calculating Commercial Lease Rents: Why The Space

You Occupy is Not All That You Pay For

Common Area Maintenance (CAM) Fees in Commercial Leasing: 101

Commercial Leases - Square Footage Used in Calculating Commercial Leases

Average Percentage Rents Charged in Commercial Leases

How to Negotiate the Terms of a Commercial Lease

Once you have found the perfect space, you still need to make an offer, and sometimes a

counter offers to negotiate the best deal on a commercial lease. Never accept any offer

without asking for at least something better. It is standard and customary in commercial

leasing to negotiation - the landlord expects it and usually will inflate rent or fees in some way

expecting to come down a bit in price.

How to Negotiate CAM Fees in Commercial Leases: Common Area Maintenance (CAM)

fees are dreaded by most tenants, and misunderstood by even more. But CAM fees

are often negotiable. The larger the space you rent, the more likely you will be able to

negotiate CAM fees and any associated administrative fees. However, no matter how

small the space is, never accept the terms of any lease without asking for a better deal.

Get Initial Asking Terms in Writing: If a landlord or leasing agent simply tells you the

terms, ask for something showing the terms in writing before you submit a

counteroffer. If they are reluctant to offer a letter, ask for an email or a copy of the

listing for space (which will contain at least the basic leasing information).

Preparing An Offer or Counter Offer Letter: A counter offer should be presented from

your business, not from you personally, even if you own a sole proprietorship.It is

helpful to remember that an offer letter is a sales pitch. You are asking for different

terms than what was presented to you - terms that are more in your favor and you

want the landlord to see you and your business as a good choice worthy of

concessions.

Listing Your Leasing Terms in an Offer or Counter Offer: There are some key things you

should include in the terms of your offer. For example, you want to make clear the

rate you will pay, the length of the lease, renewal options, as well as list any build-outs

or improvements that you want the landlord to do, or, that you will do once you move

in, and, when you will move in.

If you need help preparing your offer letter, Women in Business has a Sample Offer

Letter that you can refer to as a guideline for putting your terms into writing.

Putting it All Together

Looking for space should be exciting and fun, not scary. Do not be shy about taking notes,

measurements or pictures of any space you look at. These things can help you research and

compare more options after you leave the site.

Perhaps the two most important things to remember are almost all leases are negotiable in

some way, and, commercial leasing is complicated and landlords expect you to ask a lot of

questions. In fact, when it comes to leasing, the more questions you ask, the more likely a

landlord is to deal straight with you.

Asking questions and being assertive will help you get the best deal. And when it comes to

signing the actual lease, if you do not understand something, it pays to get a lawyer or trusted

realtor to explain the terms to you.

IV. Things To Consider Before Investing In Commercial Property Newcastle

The commercial side of real estate can be an appealing proposition for any investor. It offers

you the ability to dip into a new pool of clients and grow your business interests. But, the

commercial side of real estate is also a different beast that requires some additional

considerations versus the residential side of the business.

Patience is a virtue with these transactions as the sales cycle is longer, requiring an investor

to remain vigilant with the market demand. But many indicators point to commercial real

estate as a strong choice for agents looking to move their business forward in 2018.

Ten members of Forbes Real Estate Council shared the one thing investors should be aware

of before getting involved with commercial real estate. Here is what they recommend:

1. Remember Everything Takes Longer

Compared to residential investing, everything takes longer. Due diligence is months instead

of days. Finding new tenants takes longer. Build out or renovation is longer. But the leases

are longer, as well. Patience is key. It just takes longer. - Roger Blankenship, Flipping America

2. Understand The Market

Investors need to understand the market they are investing in. Having a good wherewithal of

the fundamentals (legal implications, competition, vacancy, rents, etc.) will allow them to

make savvy investments that could yield high returns. This will enable investors to fine tune

their commercial real estate investments and diversify their portfolio. - Juan Zaragoza, Exan

Capital LLC

3. Consider Area Demographics And Trends

When investing in commercial real estate, the investor needs to consider demographics and

trends for the area. Do they play into the reason for investing? Do you plan to develop? If so,

find a local broker who understands the area and knows the playbook of the local

authoritative agencies. You will need to understand civil engineering and environmental law

in this playbook! - Rita Santamaria, Champions School of Real Estate

4. Assess Risk By Property Type

Risk assessment is very different in commercial when compared to residential real estate, and

varies greatly by property type. The success of two residential properties right next to each

other is typically similar, while commercial buildings in a similar position could fluctuate

independently, so it's important to understand the range of risks inherent to your potential

investment. - Nav Athwal, RealtyShares

5. Avoid Failing Businesses Or Business Models

If your tenants include restaurants, grocery stores, bars or business models that are migrating

online (like banks), you need to assume that they will default on their lease at one point, and

you need to prepare your insurance correctly to make sure you are covered when that

happens. Search for failing businesses and do your best to not deal with them as there may

not always be a golden parachute. - Kent Clothier, Real Estate Worldwide

6. Know The Time Frame For All City Approvals

After working with more than 75 different city jurisdictions for the overall city permit

approvals, I know it can take one month or even a few years prior to receiving a building

permit. Before buying a commercial property Newcastle, set up a meeting with the local

authorities to determine the required approvals — from planning and zoning, site plan, city

council, etc. - Pamela J. J Goodwin, Goodwin Commercial

7. Understand Market Trends' Impact On Demand

It's important to understand the dynamics of the property type you are selecting. For

example, if you are looking to invest in retail, consider the near- and longer-term impacts of

e-commerce on tenant and consumer demand. If you are looking at offices, consider how

trends like co-working and telecommuting could impact demand for office space in your

market. - Gary Beasley, Roofstock

8. Be Ready To Have An Active Role

Investing in commercial real estate is not a passive investment. The most successful investors

take a very active role. They have systems and processes in place to ensure that the property

is achieving its maximum operating potential. They are constantly keeping tabs on

development and economic trends in the local market, as well as broader economic trends. -

Jay Crotty, SkyView Advisors

9. Find Capital Or A Good Deal

To be successful in commercial real estate you need two things: capital or a deal. Currently,

the market is flush with capital and if you can find an attractive deal, the equity will be there

for you. If you don't have a deal and are worried about high valuations, finding a patient

source of capital should be your priority. Lining these two items up will give you the credibility

to be successful. - Brian Milovich, Calvera Partners

10. Consider CRE Debt Instead

Some investors aren’t aware there is opportunity to invest in real estate with less risk and

greater potential return than property ownership -- through investment in commercial real

estate (CRE) debt. With returns in the range of 8-10% and a stronger standing than property

owners in the event of a market correction, this opportunity is often overlooked by those

looking to dive into CRE investing. - Evan Gentry, Money360

V. Tips for commercial property Newcastle investment

Are you thinking of investing in commercial property Newcastle? Or do you want to know

what attracts someone to invest in commercial property?

Commercial property Newcastle investment isn’t always riskier than residential investment

and it can provide more cash flow. Adding commercial property to a portfolio can be a good

way of diversifying your investment.

Each investment decision is different but based on my 30 years commercial property

experience; here are my five key steps to get you started.

Get a great tenant and a strong lease

One of the cornerstones of a commercial investment is a great tenant. That tenant pays their

rent on time, looks after your property and is on a lease with good terms. A great tenant to

have is a bank or a strong national or multinational company; someone who is stable and has

capacity to pay. A tenant that is just starting a business may be more of a risk because a high

proportion of small businesses fail in the first year.

Know how to price a commercial property Newcastle

Commercial property prices are determined by two main factors.

Current Net Rental Income (Net Income) is basically the cash left over after property expenses

(council and water rates, insurance, land tax and repairs) are paid but before interest is

deducted (excluding any GST).

Rents are typically expressed in terms of rate per square metre. Generally, it’s the net rent

per annum (p.a) divided by the internal size of the shop or office. Use the rent per sqm p.a for

comparisons to other properties.

Market Yield (Yield) is a moving figure. The yield percentage is a reflection of the risk you take

purchasing the property. The higher the risk the higher the yield. A bank deposit is virtually

risk free and the interest rate or yield you get is about 2%. Commercial property has more risk

and currently yields around 6.6% for a good property (down from 7.9% in 2012).

Commercial property yields are also affected by bank interest rate changes. If bank rates go

up, commercial property yields increase. This in turn lowers the value of a commercial

property.

Attending commercial property Newcastle auctions can also give you a better understanding

of price. You’ll also gain experience in how bidding works and learn how not to bid more than

the value of the property.

Know the Market Rent

It’s very important to be realistic about the rent you can achieve from a property. Find out

what other properties are renting for in the area. Speak to the tenants, owners and valuers

and real estate agents.

Think long-term growth

Investment in property is not all about rent. A good commercial property provides both

income and capital gain. It is worth investigating how much your property is likely to rise over

the medium to long term. Look at historical and forecast rises for properties in the area as

well as properties of the type you are considering. Talk to agents and read property reports

to get this data. Economic and social factors driving demand for property are also key to

capital gain. These include population growth and demographic changes, interest rates, and

infrastructure development.

Speak to your lender

Financial institutions have different requirements when lending for commercial property as

opposed to residential property. Normally they lend a lower proportion of the value of the

property than they do for residential. Before thinking about investing, speak to your current

financial institution and other lenders to understand the finance options are available to you.

After considering all these tips, you can choose the best commercial property according to

your requirements.

For ex:

Buy Now!! Minimal 2 Bedroom Apartments Remaining

Property Features

Category : Land/Development

Land Area:2

Tenancy: Vacant

Property Description

Nestled in a boutique area, this remarkable release of 2 bedroom apartments consisting of 1

or 2 bathrooms combines vibrant beach side lifestyle, spectacular outlooks and uplifting

green landscapes with beautifully finished living spaces. Located in Whitebridge's growing

centre and just metres from the 15km Fernleigh cycle way.

Family friendly living and low-key opulence is the forefront of The Dudley Apartments

philosophy. It is a masterpiece of design and low maintenance living has never been so easy.

* Strong rent returns

* Depreciation schedules available

* Government Incentives when purchasing off the plan

For further details, visit here: https://www.commercialproperty2sell.com.au/details/buy-now-

minimal--bedroom-apartments-remaining.php

Currently the most affordable 2 bedroom apartment in Charlestown

Property Features

Category : Land/Development

Land Area:1012 Square Metres

Tenancy: Vacant

Property Description

Offering a selection of Studio, 1, 2 and 3 bedroom luxury apartments.

Featuring balconies and terraces perfect for entertaining, each apartment comes with it's own

secure parking.The gourmet kitchens are designed to maximise space and include two-toned

cabinetry, stone bench-tops with waterfall edges, and quality stainless steel appliances

including gas cook-top and dishwasher. The kitchen flows effortlessly into the open plan living

area, creating beautiful spaces for entertaining.

Optional upgrades are available and can be tailored to your needs, featuring oak timber

flooring and SMEG kitchen appliances. Your new lifestyle awaits.

Visit here for further details: https://www.commercialproperty2sell.com.au/details/grace-

apartments-a-new-benchmark-in-comfortable-convenient-living.php

VI. Pros and Cons of Investing in Commercial Real Estate

Any type of property, whether it’s commercial or residential, can be a good investment

opportunity. For your money, commercial properties typically offer more financial reward

than residential properties, such as rental apartments or single-family homes, but there also

can be more risks. Understand the full pros and cons of investing in commercial properties is

important so that you make the investment decision that’s right for you.

What Is a “Commercial Property?”

Commercial properties may refer to:

retail buildings

office buildings

warehouses

industrial buildings

apartment buildings

“mixed use” buildings, where the property may have a mix, such as retail, office and

apartments.

There are nuances to managing each of these types of properties. To paint a general picture

of what it’s like investing in commercial property, let’s examine the pros and cons of investing

in a single-story commercial retail building, such as a community “strip mall”.

Positive Reasons to Invest in Commercial Property

Here are some of the pros of buying commercial real estate over residential property.

Income potential. The best reason to invest in commercial over residential rentals is

the earning potential. Commercial properties generally have an annual return off the

purchase price between 6% and 12%, depending on the area, which is a much higher

range than typically exists for single family home properties (1% to 4% at best).

Professional relationships. Small business owners generally take pride in their

businesses and want to protect their livelihood. Owners of commercial properties are

usually not individuals, but LLCs, and operate the property as a business. As such, the

landlord and tenant have more of a business-to-business customer relationship, which

helps keep interactions professional and courteous.

Public eye. Retail tenants have a vested interest in maintaining their store and

storefront, because if they don’t, it will affect their business. As a result, commercial

tenants and property owner interests are aligned, which helps the owner maintain

and improve the quality of the property, and ultimately, the value of their investment.

Limited hours of operation. Businesses usually go home at night. In other words, you

work when they work. Barring emergency calls at night for break-ins or fire alarms,

you should be able to rest at night without having to worry about receiving a midnight

call because a tenant wants repairs or has lost a key. For commercial properties it is

also more likely you will have an alarm monitoring service so that if anything does

happen at night, your alarm company will notify the proper authorities.

More objective price evaluations. It's often easier to evaluate the property prices of

commercial property because you can request the current owner’s income statement

and determine what the price should be based on that. If the seller is using a

knowledgeable broker, the asking price should be set at a price where an investor can

earn the area’s prevailing cap rate for the commercial property type they are looking

at (retail, office, industrial, etc.). Residential properties are often subject to more

emotional pricing. See the Nolo article Is that Residential Real Estate Investment

Property Worth It? for more on the subject, including an explanation of cap rates.

Triple net leases. There are variations to triple net leases, but the general concept is

that you as the property owner do not have to pay any expenses on the property (as

would be the case with residential real estate). The lessee handles all property

expenses directly, including real estate taxes. The only expense you’ll have to pay is

your mortgage. Companies like Walgreens, CVS, and Starbucks typically sign these

types of leases, as they want to maintain a look and feel in keeping with their brand,

so they manage those costs, and you as an investor get to have one of the lowest

maintenance income producers for your money. Strip malls have a variety of net

leases and triple nets are not usually done with smaller businesses, but these lease

types are optimal and you can’t get them with residential properties. For more on

common lease terms, such as net leases, see the Nolo article Commercial Leases:

Negotiate the Best Terms and related articles in the Business Space and Commercial

Leases section of this site.

More flexibility in lease terms. Fewer consumer protection laws govern commercial

leases, unlike the dozens of state laws, such as security deposit limits and termination

rules, that cover residential real estate. For more on commercial leases, see the Nolo

book Negotiate the Best Lease for Your Business, by Janet Portman and Fred Steingold.

The Downside of Investing in Commercial Property

While there are many positive reasons to invest in commercial real estate over residential,

there are also negative issues to consider.

Time commitment. If you own a commercial retail building with five tenants, or even

just a few, you have more to manage than you do with a residential investment. You

can’t be an absentee landlord and maximize the return on your investment. With

commercial, you are likely dealing with multiple leases, annual CAM adjustments

(Common Area Maintenance costs that tenants are responsible for), more

maintenance issues, and public safety concerns. In a nutshell, you have more to

manage; and just as your tenants have to worry about the public eye, you do as well.

Professional help required. If you are a do-it-yourselfer, you better be licensed if you

are going to handle the maintenance issues at a commercial property. The likelihood

is you will not be prepared to handle maintenance issues yourself and you will need

to hire someone to help with emergencies and repairs. While this added cost isn’t

ideal, you’ll need to add it on to your set of expenses in order to properly care for the

property. Remember to factor in property management expenses when evaluating

the price to pay for a commercial investment property. Property management

companies can charge between 5-10% of rent revenues for their services, which

include lease administration. Evaluate beforehand if you want to manage leasing and

the relationships yourself, or if you want to outsource those responsibilities.

Bigger initial investment. Acquiring a commercial property typically requires more

capital up front than acquiring a residential rental in the same area, so it’s often more

difficult to get your foot in the door. Once you’ve acquired a commercial property, you

can expect some large capital expenditures to follow. Your property might be

humming along for a few months and wham, here comes a $10,000 bill to address

roofing repairs or a new furnace. With more customers there are more facilities to

maintain and therefore more costs. What you hope is that the gains in revenue

outweigh the gains in costs, to support purchasing a commercial property over a

residential one.

More risks. Properties intended for commercial use have more public visitors and

therefore have more people on the property each day that can get hurt or do

something to damage your property. Cars can hit patrons in parking lots, people can

slip on ice during the winter, and vandals can spray paint the sides of the building.

Incidents like these can occur anywhere, but chances of experiencing something like

these events go up when investing in commercial properties. If you're risk adverse,

you may want to look more closely at putting your money in residential properties.

VII. Conclusion:

If you’re thinking of entering the property market, but don’t know where to start, follow the

above mentioned points to better understand the process and considerations involved.

VIII. References:

Marc Terrano. (2019) The beginner’s guide to property investment| finder. Retrieved from 13

June,2019

https://www.finder.com.au/the-beginners-guide-to-property-investment

Ashwini Kumar Sharma (2018) When it makes sense for you to invest in commercial property|

livemint. Retrieved from 13 June,2019

https://www.livemint.com/Money/IPQvKo1HYuZVzBkzCHcaXO/When-it-makes-sense-for-you-to-

invest-in-commercial-property.html

Lahle Wolfe. (2019) How to Find The Best Commercial Space For Your Business|

thebalancecareers. Retrieved from 13 June,2019

https://www.thebalancecareers.com/how-to-find-the-best-commercial-space-for-your-business-

3515431

Forbes Real Estate Council. 10 Things To Consider Before Investing In Commercial Real Estate

| forbes. Retrieved from 13 June,2019

https://www.forbes.com/sites/forbesrealestatecouncil/2018/01/29/10-things-to-consider-before-

investing-in-commercial-real-estate/#45eee4833b7f

Scott Walkom. (2015) 5 tips for commercial property investment| hunterheadline. Retrieved

from 13 June,2019

https://www.hunterheadline.com.au/hh/expert-article/5-tips-for-commercial-property-investment/

Commercialproperty2sell. Commercial real estate for sale in Newcastle | Retrieved from 13

June,2019

https://www.commercialproperty2sell.com.au/for-sale/nsw/newcastle/

Matt Larson. Pros and Cons of Investing in Commercial Real Estate| nolo. Retrieved from 13

June,2019

https://www.nolo.com/legal-encyclopedia/pros-cons-investing-commercial-real-estate.html