Kitchener is well-known as one of Ontario’s premier tourist towns, catering to the intellectual crowd that loves Canadian history and art. As such, it has a variety of businesses that cater to the influx of curious visitors, from ice cream parlors and souvenir shops to gas stations, convenience stores, and more. Of course, all of these companies need a place to call their own, which is why commercial real estate in Kitchener is an incredible opportunity for the savvy investor.
With commercial real estate purchases, you are guaranteeing yourself a steady income for years to come, one which will pay back your initial investment with interest; you’re also helping to diversify your portfolio and protect yourself against market crunches. But how do you get started with investing in this arena of the real estate market? Today, we’ll discuss how to begin capitalizing on this opportunity.
The best investors know themselves and their own needs before they take a look at the market
If you’re new to investing, it might sound odd to start out discussing why it’s so important to be aware of your own life path; you might believe that you should focus on market conditions and how to secure the best deals. However, before you can even evaluate your investment opportunities, you need to have a clear plan for why you’re doing this.
Of course, you’re looking to invest to make money, but you need to get more specific. Why have you chosen real estate as your investment? What’s your acceptable minimum return on investment? What’s the longest acceptable time before you’ve recouped your initial purchase? How long do you want to hold onto a property before sale?
Once you know this, you can start determining your overall strategy for real estate investments. Consider the qualities of patience, agility, and diversification mentioned by expert Andrew Hochburg, then decide how you will weigh each of these three factors to create a well-balanced strategy. What exactly does patience mean to you? What do you believe makes a well-diversified portfolio? How responsive is too responsive to market trends?
These are a lot of questions to consider before you even research the Kitchener commercial real estate market, but spending time examining your own values and tendencies will serve you incredibly well once you finally begin to analyze this Ontario town in earnest.
Once you have a strategy in place, begin your market research
Market research is something incredibly specific to an area or industry, and you should be taking a very close look at Kitchener commercial real estate rather than an overall glance at the Canadian real estate market. While getting a holistic view of large-scale market trends can be helpful, it will only assist you in purchasing real estate if it’s taken in conjunction with local research, rather than used as a substitute for that nitty-gritty examination of a specific area.
Firstly, take a look at average property values for commercial real estate in Kitchener by using a real estate marketplace website. Remember that commercial and residential real estate are slightly different; though they mostly track with one another, there may be variations between the two that can scuttle your observations if you only look at residential real estate. Research previous and projected trends in the local market to have an idea of what might affect your investment, whether that’s changes in leadership or overall economic factors. Keep up with the business section of local media outlets, like CTV News Kitchener, as these outlets will have specific, localized information about upcoming business events, purchases and acquisitions, and changing laws that may affect business in the area.
Once you’ve got this in hand, you can start really diving into specific properties. Using real estate marketplace sites, take a look at properties on the market that fit your own needs, whether that’s apartment buildings, office buildings, or industrial areas. Make a shortlist of those you’re really interested in and start performing due diligence, such as asking about the rental income, yearly maintenance costs, and any issues with the property that may need to be taken care of before welcoming a new tenant. You can finally start making offers, confident that you have all the information you need to make a good decision.
Rely on professional guidance, and you’ll be a Kitchener real estate aficionado in no time
There’s really no substitute for expert advice in any field, but this is especially true for real estate. Commercial property purchasing is a complicated process, and you should reach out to those who have deep knowledge of the Kitchener market, as well as those who can assist you in negotiating and signing contracts. Accountants, real estate lawyers, and local business leaders are your best resource for knowledge about the Kitchener-Waterloo area, so never hesitate to start making those contacts. You never know who may be helpful to you in the future – or what they can clue you in on about your own property.
With a better understanding of yourself and of the market as a whole, you can make great decisions about which properties to purchase. Before you know it, you’ll be a proud owner of a new commercial property – and a savvy investor who can make even more deals in the future.