As a small business owner, you want to maximize your return on investment for each property you purchase. While there are a number of factors that go into determining the best property for your business, adequate proximity to target customers, a growing market, and available amenities are among the most important ones. Before you take out a mortgage on your next commercial property, make sure to keep these tips in mind — as they could save you thousands down the road.
Consider location first
All businesses are not created equal, and neither are the commercial properties that house them. What’s important to one business may be a complete turn-off for another. For example, a coffee shop might thrive in a busy urban center, but the same location might be the kiss of death for a high-end clothier. So, before you start shopping for commercial property, it’s important to make a list of what’s most important to your business. Then, when you’re considering a property, you’ll be able to filter out the locations that won’t work for you and focus on the ones that will.
Location is everything when it comes to commercial property, and it can make or break your business. However, No matter what type of business you have, a busy street or highway is ideal. You should also consider the demographics of your potential customers, as this will help you decide what type of property you need. For example, if you start a local business, you will want to be close to your customers’ location. However, if you run an online business, you can be anywhere from the other side of the world.
How easy is it to get financing?
If you want to invest in commercial property, you need to make sure you have the money to pay the purchase price, plus the closing costs and the money to fix the place up. The only time you should be purchasing an commercial property is if you have all your financing in place before you buy. Otherwise, you risk not being able to get a loan at all or having to pay for an expensive cash-out refinance. Even worse, you might find yourself unable to pay your property taxes, insurance, and maintenance costs. That would be a very expensive mistake. Always be sure you have all the money you need to buy your commercial property properly.
Financing is the single most important factor when buying a commercial property. It can be the difference between owning a successful business and losing a large chunk of your investment on a bad investment.
Make sure the property is ready for your business
The last thing you want to do is move into a commercial property that needs extensive renovations. The costs and time it takes to renovate a property can be a huge burden for your business. That’s why it’s important to ensure that proper due diligence is carried out before you purchase a property.
Whenever looking for an ideal commercial property for sale in Victoria, consider a few things to things before you make an offer. Is the property prepared for the maintenance and repairs that will be required to make it functional for your business? Will you need to put in more landscaping, more parking, or build more storage? What about the systems inside the building? Do you need to build more bathrooms or change the layout of the building? The last thing you want to do is make an offer on a property that requires a lot of work and then have to walk away from it.
Trim costs by negotiating a lower price and getting more for your money
When you decide to purchase a commercial property for your business, You need to ensure that you get the most for your money. There are some ways that you can do this and save money along the way.
Negotiate for a lower price: When you’re negotiating for a commercial property, you need to know what you want and how much you can spend. If you are willing to walk away from the deal, you are more likely to negotiate a lower price. This is especially the case if you are dealing with a private seller. You need to be prepared to walk away if you don’t get a deal that you are happy with.
Get the most for your money: Negotiating for a lower price is not the only way that you can save money. You need to look at every aspect of the deal, especially the commercial real estate agent fees. The fees for the commercial real estate agent should be transparent and take into account everything they are doing for you. Also, you want the fees to be fixed to know what you will be paying from the start. This way, you know what you are getting for your money.
Ask the right questions about insurance, taxes, and maintenance fees
The first thing to ask is, who will pay for insurance? Will it be you or the landlord? The next question you need to ask is, what insurance does the landlord have? Some insurance companies will not insure certain buildings or zones. Also, you need to ask if the landlord will pay for any upgrades, refurbishments, or repairs. You should also ask if the landlord will pay for any upgrades or alterations you want to make.
You’ll also want to ask when and how the rent will be reviewed. And if you’re signing a long-term lease, you should ask how often you can put the rent up? Check with your local council to find out if charges are applicable to your business, such as rates or business tax. You should also find out if parking is available, how much it will cost, and if you have to pay for it or if it’s included in the rent. Finalize all of the paperwork before you pay for it.