Re: What to check before buying commercial property?
Posted: Mon Feb 15, 2016 12:13 pm
Hello iamsam. Welcome to the forums.
There are always a lot of considerations before buying commercial property, especially since you're likely to lose money if you skimp out of them.
It's good that you're researching things further because that is what will give you the edge when you actually get down to buying. If you haven't considered these already, here are a few things to think about:
Cheers,
Otto
There are always a lot of considerations before buying commercial property, especially since you're likely to lose money if you skimp out of them.
It's good that you're researching things further because that is what will give you the edge when you actually get down to buying. If you haven't considered these already, here are a few things to think about:
- Your affordability: To buy larger commercial properties, you'll generally need to have a lot in equity.
- Familiarity with the area: If you're not too familiar with the area, you may miss out on considering some major profitability issues that can arise down the track .
- Tenancy situation: Strong corporate or government tenants with long term leases can be a great find. If the area has higher vacancy rates, you may want to focus on finding some tenants first.
- Acceptable security property: If your security property isn't acceptable to the lenders, your commercial property loan application may be declined. Lenders prefer properties that are easily marketable and in a good location such as a regional centre.
- Loan features: Think about what loan features you will actually use and discard any that you won't. Deciding on this can help you meet your goals much quicker further down the line.
Cheers,
Otto