Buying a commercial property can be a stressful and daunting experience.
You may feel as though there are hundreds of options available and that you just don’t have the time or the energy to explore them all. If this is the case, then here are a few tips that will help you to get well underway.
Choose the Location Carefully
You need to pay as much attention as you can to the location of your property. Think about it, will you be employing a substantial number of employees? Are you going to need large business premises? Either way, a location in the town centre would probably work in your favour. If you are dealing with a lot of your clients remotely then you may be better off opting for a location that is out of town, as this will help you to keep the cost down without compromising your overall experience.
Take Advantage of the Low-Interest Rates
Sure, interest rates are not going to stay the same forever, but that being said, you still need to make sure that you are getting a great deal. If you do then this will help you to budget more and it will also help you to take advantage of any future investment opportunities too, so it is important that you keep this in mind as much as possible.
Think with your Head
The cost of buying a commercial property can be expensive. You will also have to face a lot of uncertainty too, and this can make it even more difficult for you to make confident decisions. If you want to help yourself here, then you need to make sure that you think with your head and not your heart. If required, you can rent for the short-term until a good property comes up for sale, as this is a great way for you to bide some time without having to worry about making a rash decision.
It’s so important that you try and find a property that is flexible. If your business is going to expand in the future, then you have to make sure that there are options available for you to take advantage of. For example, are you able to extend it? Can you adapt it to meet your future needs? If you can’t then this could be a sign that it is not a good property for you.
Purchasing a commercial property will require a high deposit. You need to be able to put up around 20% if you want to get the best result out of your purchase, as this will help you to get the best interest rate and deal overall. You should note that most banks will ask to see some kind of business plan if you do intend on taking out any kind of loan, so make sure that you keep that in mind.
Don’t Skip on the Survey
You have to make sure that you’re able to carry out a full and professional survey. You need to do this before you carry out the purchase. Don’t rely on just a basic survey, as this won’t point out the issues you need to be aware of when entering your contract.
Having the option to sublet will really help you out. It can be a brilliant way for you to manage your cash-flow and it can also help you to retain your commercial flexibility too. You do however have to make sure that your mortgage lender gives you the chance to do this. If they won’t then this could cause you major issues in the future and you may even find that you end up breaking the contract that you’ve made.
Remember that it is very important that you budget for the overall maintenance of the property. If you own a commercial building, then the upkeep can be expensive. You may end up with hidden costs down the line too, so when you do take out your mortgage, make sure that you have enough money spare at the end of each month to account for all of this. If you are doing a lot of work to the property then it may be a good idea for you to hire a wait and load service. When you do, you can get everything you need taken away, so the rubbish isn’t obstructing your commercial premises.
Don’t forget to take into account things like parking when you purchase a commercial property. If you have an extensive client base, then you may need to buy an out-of-town location as this will give you access to a much bigger parking lot.
Research your Market
Property prices should also be taken into consideration. Think about it, what are the long-term predictions for the area? How will this impact future property prices? Are you going to be able to make a profit on the property? If not, then you may want to reconsider that. Time spent on things like research is never wasted.
Commercial investing really does cover a huge range of property types. You may be buying a small store or even a corporate HQ. Either way, when you are making your first investment you have to make sure that you know how much you can invest. You also need to know how much you’re able to lose too, in case you end up in a bad situation. If you aren’t sure whether something is a good investment or not then try and look at it from a personal standpoint, rather than just a business one. Ask yourself if you like the property, and think about the potential that it has to offer you. If you can’t really decide then this could indicate that you haven’t found the right one yet and that you need to keep on looking.
So, buying a commercial property doesn’t need to be difficult and you would be surprised at how easy it is for you to have a great investment even if you don’t have any prior experience.