While a lot of business can be conducted online, you might be in an industry that requires a brick-and-mortar location, or maybe you’re simply more comfortable with a physical location for your organization. Either way, you need to know the right way to go about buying up property. You might be well on your way to becoming the next Peter Foyo, and your business site could play a big part in that.
Know the Reasons to Buy
It might be that you’re on the fence about buying a commercial property, you could be giving more thought to renting a space instead. If you can afford to do so, buying your property could be one of the best decisions you make in your professional life. When you take out a loan to buy a property, you know what your payments are going to be on a month-to-month basis as long as you have a fixed-rate loan. On the other hand, market rent prices can fluctuate, meaning that you may have to pay more when you’re ready to renew a lease.
Something else to think about is the fact that there are several tax breaks to enjoy when you own commercial property, ones you might not qualify for if you rent your space. With both owning and renting, you’ll want to speak with an accountant so you know for a fact what kind of tax breaks and write-offs for which you qualify. Finally, you have to bear in mind the fact that you are in 100 percent control of your property when you own it, which you can’t say about renting your business location.
Know What Kind of Property Is the Best Fit for Your Business
There’s a lot to consider in a commercial property, chief among them is its location. Besides being close to your customers, you should also think about your proximity to shipping lanes, highways and railroads. Your choice is also impacted by whether there are zone restrictions to take into consideration, as well as the overall condition of the business; you might not like the idea of spending more money on a fixer-upper.
Additionally, do yourself a favor and think about parking. Is there enough space for employees as well as customers? Also, you might need to expand your company in the future, and the business spot you choose should be able to meet your demands.
Work With a Team of Professionals
To have the best chance of finding an ideal spot for your business, you’ve got to back yourself with knowledgeable and well-experienced professionals. Rather than any real estate broker, it’s best that you turn to one who has experience in commercial properties and understands your chosen industry’s unique demands. You’ll also want to consult with the right mortgage broker who can put together a good deal before you spend any money, and have a commercial real estate lawyer look over your agreement to ensure you aren’t getting a bad deal. On the financial front of commercial real estate, the right accountant will be instrumental in letting you know beyond a shadow of a doubt that you can afford a commercial property, give you an idea of your operating budget and help with tax benefits.
Know How Your Investment Can Work for You
Looking to the future is not only good for business, it’s good for whatever commercial real estate investment you make as well. There’s a good chance that if you play your cards right, the value of your real estate can increase in value over time. That means that in the future, you might be able to sell your business for more than you originally paid for it. You can also sell advertising space on your property for other businesses, maybe ones you partner with.
As you can see, there’s a lot to think about when it comes to buying business property. Take your time, and be sure you have a view of the full picture before making any decisions.