There is a belief that all true financial wealth in the world has been accumulated through the acquisition of real property. Since the first civilization in Mesopotamia, man has built walls, dug wells and developed his property, in an attempt to own, control and prosper.
Real Property, may be defined as property that includes land and buildings, and anything affixed to the land. For a business, real property would include warehouses, factories, offices, and other buildings owned by the business. Real property only includes those structures that are affixed to the land, not those which can be removed, such as equipment.
Real property may also be determined to include:
- Whatever is beneath the surface of the land, like minerals, natural gas, and oil
- Rights to the use of property
- Leasehold improvements (since they cannot be removed)
Real property is distinguished from personal property, which is other property owned by a business or individual, including equipment, furniture and fixtures.
Commercial Property ownership falls under to categories, User and/or Investors.
Are you a User or an Investor? There are two main types of commercial customers:
1. The Users who are seeking a property that will house their business. Their main concerns are location, visibility and the prestige that will accompany a particular property or location. Buying decisions will be affected by the buildings’ age, or newness of the property, the neighborhood, safety for staff, security, lighting, office size, window placements, and primarily whether the property enhances business opportunities. Their buying decisions are largely focused on the question “‘What’s in it for my business” and whether this property will offer the opportunity for growth without excessive increases in overhead costs.
2. The Investors who are motivated by three slightly different factors of influence; What is the rate of return they can expect to receive on their capital investment? How secure is the rate of return, is it guaranteed, or reliable? What are the risks or chance of losing the investment? And most importantly what is the potential for capital growth? Investors often have a desired rate of return established prior to beginning their property search. While attractive settings and decors may be desirable, they are not at the top of the list for Investors.
A User may be ‘Buying an Income Dream’, whereas an Investor is ‘Buying an Income Stream’
Whether your goal is to use, or invest in real property – it is mine to authentically help you achieve it, and if my knowledge and understanding can assist you in any way – it would be my honour and priviledge to work with you.
Sharon
