Aspire To Buy Commercial Property In 2017? 6 Tips To Help You Succeed
Posted on: 3 January 2017
If you are thinking about buying commercial real estate as part of your resolutions this year, you have a lot to consider. It can be difficult to begin investing if you never have before. Commercial property is not unlike residential property in some respects; however, it is important that you think about the property as an investment rather than a home. Achieve your real estate aspirations with these helpful tips.
1. Consider the Monetary Gains a Property Provides
No plan on how to achieve monetary gain with your new property? Don't accumulate properties just to say that you own them. Create a solid plan for the future based on what you purchase.
2. Understand that Lenders Have Different Expectations
Want to buy a commercial property? That's great. Your lender will want to see a higher down payment than what you are expected to put on a house, though. You may also be expected to show different types of financial responsibility, different from what you'd expect with a housing situation.
3. Don't Be Confused about Location
If you are buying a property in an unfamiliar region, make sure that you understand which areas are trendy and which are booming just momentarily. Today's hotspot could be tomorrow's dying neighborhood. Don't become confused about which neighborhoods are better suited for the type of commercial you intend to buy either. You can actually explore a region by visiting open houses and speaking with real estate agents trying to sell homes in the area you are considering.
4. Work with a Real Estate Agent
Commercial real estate agents exist for a reason. They know the business inside and out, and they are more than ready to help you with your transaction. Commercial agents are not outrageously expensive, and they can actually be more helpful than you think. They know the lingo, the negotiation tactics, and everything else about the industry that might confuse you.
5. Understand Allowable Uses
Each property has different zoning requirements. You might be surprised to learn that the property you just purchased has been zoned for industrial use or residential use, but not commercial. Ensure that you understand even the minor details surrounding how you are eligible to use the property you just invested your cash in to avoid disappointment.
Still not sure about which commercial property to buy? Get in touch with a real estate professional to learn more about your options.
For more information contact a real estate agency like The Schueler Group.
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