THE TOP POINTS YOU AS A BUYER SHOULD TAKE CARE OF BEFORE BUYING A COMMERCIAL PROPERTY. KNOW THE DIFFERENCES BETWEEN RENTING, LEASING OR BUYING, AND WHICH SUITS YOUR REQUIREMENTS THE MOST.

1. RESEARCH! RESEARCH! AND RESEARCH!

Before investing your hard-earned money, think twice. Have a plan in mind, list out your requirements, have an idea of how much additional support staff you'll have apart from employees, or how large your convenience store will be or how many clients you have to squeeze in their goods in your warehouse.

2. PLAN OF ACTION

The importance of a plan on paper can never be stressed enough, if you want to be successful you must have a solid plan. If you have a team of people managing your business, always consider their advice.

3. LOCATION

One may think what's the location of your office has got to do with its performance? A strategically located office is a decisive factor in its success or failure. Few factors to keep in mind for finding the most suitable location

a) Will Clients be visiting your office?

b) Do you have a sizeable workforce? If yes, you will need a big parking space and support staff for the same.

c) Is there a warehouse need?

d) Are you a start-up? If so, you might want to consider renting out to keep costs at check.

e) Do you plan to expand shortly? If yes, then it will be a good idea to acquire a space to suit those needs, eliminating the hassle to relocate.

4. GETTING A PROFESSIONAL OPINION

Whenever you are putting a large capital in real estate, it's a good idea to get a full survey of the property done, to avoid hidden surprises of legal complications in the future. Getting legal advice is a must, it doesn't matter if it's a commercial, private or any other property it is always a wise precaution to check for any problems before they arise. Remember, prevention is better than cure.

5. NEVER FORGET TO BUDGET

Buying commercial properties is sure to burn a serious hole in your pocket because commercial properties require a lot of money in terms of utilities, maintenance, support staff in addition to the property cost itself. So it's wise to know the long term ownership costs you may incur, to know if this investment will be economically viable or not.

6. TAKE THE DEPOSIT INTO ACCOUNT

Some businesses easily to forget that you will need to place down a large deposit, just like you would with a residential property. It is a good idea to know about how much money you have available, and whether you would be able to put down a substantial deposit. Normally mortgage lenders tend to ask for a deposit of 20% of the value of the property (or sometimes more), and may even ask to see a business plan.

7. USE YOUR HEAD, NOT YOUR HEART

It is important to be rational- don't jump headfirst into buying the commercial property without proper research and assessing your financial and business requirements. The question you need to ask yourself is, if renting will be a better option rather than putting in a serious investment from start. The doors of negotiation will always be open if you rent out and find it suitable for your business after spending some time at the place, as the option to move out is always open.

8. CO-WORKING SPACES

If you are a start-up, shared working spaces are a perfect option to start with. Work from a shared space and when you have grown into a stable company, go for your own space.

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1. Published by Darren Best | Feb 21 2018