Whether you’re going to be buying a commercial property for your new business, or just as a means to invest, the below points would help.
What Will You Do?
There are number of commercial properties on the market. The ones near you could be apartments, offices, malls, warehouses, industrial buildings or retail shops. Ask yourself – why are you going to purchase the property?
If it’s to invest, know that a larger building could appreciate over time. Being the landlord to an apartment or office complex could result in you regularly getting rent too.
If it’s going to be the site of your business, how’s the market in the area like? You’ll be more successful in certain areas.
Found a property you’re interested in? That’s great, but you need to do research on it. Find out what the past use of the building was. It might not have been zoned for what you plan on using it for.
How easy would the property be to visit? You may be thinking of starting a shopping complex. However, complexes that are far away would attract the least customers. Convenience is also a factor if you’re going to be owning an apartment complex – if the building is away from town, less people would want to buy it.
The government would require you to pay taxes for the building. Depending on its use and value, the extent of the tax you’d have to pay would differ. If the tax for the building would be a lot, owning it might not be worth it.
Commercial properties are much more expensive than their residential counterparts. It’s a smart idea to line up your financing options before going property hunting.
There are several things you’ll need when apply for property mortgages, especially commercial ones. Examples of how to take out commercial mortgage loans would be through banks, credit unions or finance houses. Get your income and credit scores in-check. Your credit score is very important, as it would influence how much interest you have to pay.
When it comes to mortgages, an insured mortgage would leave you with the lowest mortgages rates and the insurance would make it less risky.
Why is The Building Being Sold?
If the property is good, find out why it’s being sold. On closer inspection, there may be issues that you weren’t aware of. However, it’s likely that the owner of the building wants to cash out for another investment, or there may be tax advantages of selling it.
Get the Right Team
Get the right team so you can close the deal as smoothly as possible. If you’ve hired a good commercial realtor, this shouldn’t be an issue. They would automatically put you in contact with everyone that would be needed for the buying process. From them, an expert commercial property lawyer is important. There is a lot of documents needed to transfer the building to you.
Keep these points in mind when buying commercial property for the best results.