Tips for buying commercial property
Commercial property investment, requires a lot of research and knowledge in order to be successful. This is especially true when it comes to first-time buyers. Whether you are looking to buy a building for shops, warehouses, flats or offices.
At Versus Law we have put together a handful of tips for anyone keen to purchase a commercial property.
1. Conduct thorough research
Researching is vital. Look into long-term predictions for the location you are viewing property in – is there anything that may help or hinder property values in the future? A decline in value of your commercial property could decrease your business capital therefore spend some time checking the details.
2. Determine your investment budget and return goals
Compared to residential property investments, commercial properties have much more room for potential. The location and type of property you are looking to invest in will go a long way in determining your potential returns. So always take supply and demand into consideration.
3. Take advantage of low interest rates
When considering purchasing a commercial property, it is wise to keep a close eye on interest rates as they are constantly fluctuating. Although they won’t stay constant for a long period of time, it makes a mortgage an attractive option. Re-mortgaging your property will help to increase additional capital, which will be considerably cheaper than a business loan.
4. Get your financing in order
Depending on your financial situation, you’ll want to consider strongly whether purchasing or leasing makes sense for you. For most people, leasing will be the more realistic option, which means you’ll need to locate funding options. These can range from banks, credit unions and mortgages.
5. Set realistic objectives
Experts and professionals who have years of experience investing in commercial property are a brilliant resource. Seeking opinions from a number of people before making a decision is never a bad option.
As with any other investment, having your feet planted firmly on solid ground is essential. The best plan when buying commercial property is to always keep your goals in mind, know how you’ll finance your purchase, study the market religiously and remain patient. By doing this, when the right opportunity arises, you’ll be ready to pounce and reap the rewards.
Whether you’re a property owner with a vast portfolio, are a landlord with a single or several investment properties, are looking to buy or sell a commercial property or are a tenant, we can help guide you through the legalities of your next sale or purchase.