There are many risks involved when it comes to purchasing a commercial property. This is why the process of acquiring such a property should be conducted carefully to avoid any grave ramifications. However, since the benefits are much more tempting, any new business owners considering acquiring property need to be given the proper guidance on how to achieve this in the least risky way possible. Here are 7 tips to help you achieve exactly that.
1. The Budget
The budget the new business owner has needs to be able to support the purchase of the commercial property. The budget will also help in deciding the type of property to purchase; either a freehold or a leasehold property.
You also have to take into consideration the costs that will be incurred during the purchase of the property such as payment to professional surveyors and the payment to a conveyancer who will take care of all the legal aspects of acquiring the property.
2. The Location
The location of the property is another very important aspect that needs to be taken into consideration. You should ensure that the location of the property is best suited and satisfies the niche of the business.
You have to consider the property’s accessibility. Is it easily accessible or not? Is the property located in a place where it can easily be seen by potential customers? As a potential business owner, you need to keep your mind open and consider all these factors.
3. Do an Assessment of the Property Prior to Buying it
Do thorough research on the property you intend to purchase. You need to conduct a comprehensive check not only on the property but also on the surrounding areas. Be it the attitude of the people surrounding towards the product of your business, the condition of the property which is being sold or the services available in the area, the assessment of the property needs to be detailed.
The business owner also needs to be very patient as you do this to ensure that the property being purchased really is best suited to your needs.
4. Involve Contracts in the Transactions
Ensure that contracts are involved when acquiring the commercial property. This is because a contract confirms that you have indeed agreed to purchase the property and are now its rightful owner. You need to consult a solicitor before signing any contracts in order to ensure that the contract suits you best.
5. Shop Around for a Mortgage Plan that Suits You
Before settling on a particular mortgage plan, ensure that there are a variety of choices to choose from. This gives you a liberty to choose a plan which will be most comfortable to pay. Doing this will help reduce the risks of negative equity.
6. Keep in Mind Extra Fees that are Likely to be Incurred
You also have to consider fees which will be incurred after the completion of purchase of the property. These fees include the fees levied upon the purchase price and the land registry fees. It is advisable to pay these fees early in order to avoid future complications.
7. Keep a Close Eye on Market Trends
The market trend of the property should also be considered. In this way, the property once acquired becomes an asset such that when the you intend to move, the property is sold at its appreciated value, resulting in profit.