Buying a commercial property is a very exciting time. You may feel as though you have your whole career ahead of you and you may also feel like you have so many decisions to make as well. If you don’t want to run into problems at a later date or if you want to make sure that everything runs smoothly then it helps to have a plan, so you can make the best decisions at every single part of the process.
You really need to pay a lot of attention to the location of the property. You need to think of your business premises as you would your own home, so be diligent in your approach to the whole thing and make sure that you don’t compromise either. You also need to think about your staff as well. For example, are you going to be hiring a lot of staff? Are you going to have to have a large premises to fit all of your office furniture? If you are going to have a lot of staff then you need to make sure that your offices are close to public transportation lines. This is the best way for you to make sure that your employees are not disgruntled by the move and it is also a great way for you to try and appeal to new talent as well.
Interest rates won’t stay the same forever. There are a lot of competitive rates out there and eventually you will be able to get a re-mortgage on your property and this is a great way for you to save money. Remember that there are always other ways for you to buy a property rather than just getting a business loan, and if you do invest then you can always take this money off your tax payment. You can also take off any interest that you are paying as well, so you know that you won’t have any problems at all when the time does come for you to get your accounts in order.
Use your Head
The short-term cost of buying a property would probably be much higher when compared to renting a property. You may find that you can even save money by renting, but if you have a new business then this can come with its fair share of uncertainty. When looking at properties make sure that you only invest in something that you have the ability to sustain. If you don’t think that you have the ability to sustain a long-term growth or if you aren’t quite putting up the numbers yet then it’s important that you take this into account. You may have faith in your business and you may trust that you will put up those numbers eventually, but taking out a loan based on your future prediction won’t help you and you should only invest with the capital that you have at the moment. As a new business you may even be better off renting, as this gives you the option to get out of the payments if anything should happen, but you also get the chance to get the property you want as well.
When you are looking for a property, you have to make sure that it is flexible. Your business is probably going to expand over the next couple of years and it is also going to change during the course of its operation as well. For this reason, you need to make sure that your commercial premises can be adapted. If they can’t or if the layout is very set in stone then this may not be a good option for you. You need to account for hiring more staff, changing the services that you provide and so much more so this is something that you have to keep in mind when the time does come for you to start looking at properties.
With a residential property, you will need to put up a very large deposit. A lot of providers may ask for a 20% deposit on your business premises and this is something that you do need to take into account. You may also need to go in with a business plan, as this will really help you to show the lender that you have a plan and that your business is as successful as you say that it is. Real estate providers such as Howard Hanna are great, as you can browse through several properties before you find one that is suitable for your needs. By looking online, you can also be sure to develop a plan before you go in for a loan as well.
When you have a survey done, you need to make sure that you have a full survey. Don’t rely on the basic survey, because this is the lowest survey that you can get and you also need to proceed with caution as well. If there are any problems with the property then this will cost you much more when compared to the cost of repairing your home and this is something that you really have to think about. You will also find that a mould problem can cost you thousands in the future, so the cost of the more extensive survey will probably pay for itself if there are any problems.
Another thing that you have to think about when you buy a commercial property is the parking. You have to make sure that you are happy with the parking spaces that are available and you also have to make sure that it is accommodating enough for your staff as well. If parking is hard or if your staff have to park across the plot then this could lead to them being late and it may even cause them to arrive to work disgruntled. This is something that you’ll want to avoid and this is especially the case if you want to appeal to potential clients in the future. After all, nothing looks more unprofessional than walking in a suit across three different roads just so that you can attend a meeting or just so you can go to work.
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