Three years after the devastating earthquakes that hit central Christchurch, the city is progressively getting back on track. More investors are showing confidence in Christchurch’s future, and the numerous commercial and residential properties being built, developed and rented out around the city are evidence of that.
Christchurch is a popular city for commercial property investment. Commercial properties in this area provide investors good opportunities to generate profit and make steady long term returns.
If you have plans or want to invest in a commercial property in Christchurch, here are some things to do and consider first:
• Make sure the property is in a good location. A property close to transport and infrastructure with appropriate businesses around it is a good start.
• Check the condition of the building and the land itself. The earthquake-strength of a building in Christchurch is a major consideration. Also see if the building has appropriate facilities that can attract and keep ideal tenants.
• Do your own research. Make sure you know what and who you are dealing with – always confirm what you are told.
• Consider type of tenants for the type of property and the range of rents. There’s a selection of property management companies that you can contact to compare rents.
• Seek out advice and guidance from a professional accountant that has experience in property tax.
• Speak to your bank to work out borrowing capacity. Commercial properties have a higher capital requirement and banks are not prepared to lend as much on the value of the property.
• Make certain that any Sale and Purchase Agreement allows you to seek solicitor advice before committing to the purchase.
• Contemplate on hiring a reputable and experienced property management company as they can be huge assets for you.
The past earthquakes created an investment environment for New Zealand. The demand for residential and commercial properties in Christchurch generated increased returns both in property values and rents, and has attracted property investors. Commercial property in Christchurch promises boom times ahead.