Real Estate Investment Real Estate Investing Guide for Beginners in Newca

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