Decision of buying a commercial property is like entering into a new venture. One does the research & market study but never knows what the future it has. All the parties involved, buyers, sellers, agents, etc. are prone to or exposed to the risk of demand & price movements. At the same time,
when the prices go up, all the parties reap the benefits that could be substantial.
Buying a commercial property, especially to run your own business is a far cost effective decision that on taking a property on lease and paying heavy rentals. However, there is no one-size-fits-all kind of strategy to buy commercial real estate. Also, buying a commercial real estate is much more riskier than buying a residential property. It requires a complete analysis & comparison of all the available options & study of expected returns on investment. These investments must be made after complete in-depth & detailed study of returns against expectations.
Before deciding to buy a commercial real estate, it is critical to evaluate various risks involved. One must not end up in a situation when in few years renting or leasing the same property reaps a better result. Each risk must be studied carefully along with mitigates available, and none should be ignored thinking it’s insignificant or might never affect your business. Following few important factors must be considered before purchasing a commercial real estate.
To avoid all potential risks and sail through smoothly, one must exercise extensive due diligence before concluding the deal. It might be required to frequently visit the property & nearby locations to identify issues in advance & fix them timely, thus making them ineffective once the business operations start.
The market for Commercial property sale is run by agents these days. They have an expertise in this filed & can make you chose the right property with a better price in exchange for a reasonable amount or commission.
Manish is founder of Business2sell Group of Websites.
Business2Sell.com.au is one of the leading business and franchise for sale listing websites. We work with our business brokers, commercial agents, franchisors and private sellers to help them connect with the right buyers for their opportunities.
With website now functional in Australia, United States, United Kingdom, Canada, New Zealand and South Africa. We have over 18,000 businesses for sale listed, with over 220 Business Broker and Commercial Agent.
I have over 20 years of experience in Web Industry; I have been involved in websites industry since the early years of 1996-97. In my professional career I may have worked for over 10,000+ websites. My Specialty is to build portals or complex online applications.
It is no secret that the housing market in Australia is experiencing a downturn. The prices have plummeted, and sellers are holdin..Read More
The commercial property investors have taken their investment game a notch higher as the housing market seems a bit precarious in ..Read More
Commercial property investment is not everyone’s cup of tea. It involves a gamut of factors including logical thinking, far-..Read More
The Opal Tower crisis in Sydney, which led to the evacuation of the residents after cracks appeared in the building, came as a sur..Read More
The Australian housing market has been experiencing a downslide since the last quarter of 2018 and has made many investors wary of..Read More
The mere mention of Sydney brings a smile on the faces of property developers and investors as the Harbour City has become the str..Read More
The primary purpose of a commercial venture is to attract maximum buyers, and busy precincts are the best places to grab their att..Read More
Imagine the luxury of stepping into a high-rise building’s elevator and alighting at the top floor to head straight into a l..Read More
Australia has always been a land of thriving real estate sector with its vast expansive area and low population. Over the past few..Read More
When it comes to foreign investors rolling in millions of dollars in the Australian commercial property sector, no one can beat th..Read More