Top Five Tips When Buying A Commercial Property
There are many things to consider when deciding to purchase a commercial or industrial property. In this post, we discuss the top five considerations when planning your purchase, which will assist you and streamline your search.
- What is your budget? – Use a mortgage calculator to decide what you can afford. Whether buying or leasing your property, it is important to have a budget in mind to ensure you can meet your weekly or monthly financial commitments. Having your finance in place prior to beginning your property search will enable you to move quickly should you find a suitable opportunity. Speak to your lender and have your finance approved to ensure you are looking at properties that suit your situation. Once you have a budget range in mind, we can present a number of properties that meet your criteria.
- What are your specific property needs? – When deciding on a property, it is important to ascertain the exact requirements for you and your business. First look at size requirements. How much room will you need? Decide on a square metre figure, with a minimum and maximum requirement. What kind of access will be required? Will you need room for a truck or multiple vehicles? How many car spaces will you require? How much and what kind of power will be required for your individual business needs, and what location are you looking for? Would you like to narrow down your search to a suburb or specific street? Having clear and specific answers to these questions, can really assist and streamline your search.
- Strata or Freestanding? Deciding on a Strata property may initially be cheaper per square metre but there is the addition of Strata fees, use of common areas, adherence to by-laws and a number of other considerations including access and car spaces. Freestanding properties can be more expensive but if access by large vehicles or containers is necessary for your business, or there is a need for a large yard, a freestanding property may be more suitable. It is advisable to understand the significant differences between these two types of properties and which is more suitable to your business, and ultimately, your budget.
- Prepare for negotiation – Researching your market, and current square metre rates in the area you wish to invest, is an important foundation to your negotiations. Understanding the yield opportunities on investment properties in the area you wish to purchase, ensures you have the knowledge to fairly and effectively negotiate your position.
- Work closely with your agent – We are here to help and guide you through the sale or purchase process. We will support and advise you through the experience to find the best fit for your business needs and requirements.
The most important thing to keep in mind is communication, and ask for help if you need it. We are here to support you with your purchase and lease requirements, but ultimately, you will need to understand the process fully when entering into any legal contract or agreement.