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Buying a commercial property is not the same as buying a residential one. The way you approach and consider a commercial property is also entirely different. So, if you’re thinking of investing in Mumbai commercial property, you better equip yourself with the right knowledge. Because the market is not as simple as the residential one, you’ll need all the help you can get to make a well-informed decision.
Having said that, now let’s take a look at some of the things you should consider when buying a commercial property. Read on to know all about it.
Decide Your Purpose of Investment
Before you start your search for a property, figure out your purpose. The purpose for which you’re going to buy the property will help you in deciding the type of property you should invest in. For example, you might be looking to rent it out to retailers, looking to secure a land parcel to sell later on, or even for your own business venture.
Buying a commercial property doesn’t necessarily mean you have to rent it out. Many people buy commercial properties to own their business premises and to stop paying rent. Business owners can confirm that it’s indeed worth it in the long run if you invest in owning the place you’re working out of.
Owning your business place not only saves you from paying the rent but also gives you a sense of security. Similarly, you can buy other units in your building too and rent them out, thereby you can secure a secondary source of income as well.
Whatever the purpose you decide for buying commercial property, do consider the market conditions of that particular area before finalising the deal.
Consider Your Financing Options
Finances play a key role in deciding the type of commercial property you can buy as well as the area you can buy it in. Instead of going with estimations and making mistakes like not factoring in stamp duty and other miscellaneous costs, try to know all about the costs you’ll accrue. You will need to factor in a lot of expenditures before you can finalize the transaction as complete.
Therefore, before you begin searching for available commercial properties, sort out a budget that you can spend without repercussions.
After sorting out your budget, you can also take into account different financing options available for the property that you intend to buy. Sometimes when you spend a little bit more, you get access to much better options. So, it’s always a good idea to inquire about the financing options available in the market. Examples of these include PMAY or other loan schemes that go with commercial properties.
Do Pay Attention to the Location
Location plays a vital role in determining the value of any property whether it’s residential or commercial. But unlike residential property, commercial properties have to be at a place where they are easily approachable. You have to go for a location that will bring in foot traffic along with the maximum attention to your place. This is why commercial real estate located on main roads and near landmark attractions is always priced higher.
Similarly, if you’re looking to buy a property for your business then choose a location that suits your customers. Don’t go for a location that is difficult to find as it won’t help you in bringing in more customers.
Carry Out Your Research
When you’re considering buying commercial property, you have to consider future numbers. Before making any decision, consider the current value of the property as well as its expected future value.
Before purchasing any commercial property, calculate its ROI. If you think the property will reap good returns only then should you purchase it. You must remember that commercial properties have to yield substantial returns. Therefore, before completing any transaction, carry out a detailed survey of the area to consider its growth potential. Do your stress-test analysis and make a decision after analysing the end results.
Get the Help of Some Expert
No buyer can be an expert in real estate unless you’re a realtor yourself. So, whether you’re an NRI buying property in India or just a local investor, it’s always good to involve an expert to help you search for the right property. They will try to show you options that best meet your requirements.
These professionals have been in the industry for so long that they can successfully and accurately predict the market trends. Therefore, if you want to get the best commercial property, you should trust your agent to help find you one.
Additionally, your agent will also help you in sealing the deal. Real estate agents have hands-on experience in preparing property contracts and negotiations so they can also help you in finalizing your transaction.
Final Words
In short, before you start searching for a commercial property to buy, you should figure out your end goals. After streamlining your options, choose a commercial property based on the above-mentioned tips. Make sure that you aren’t hasty in your decision and aren’t strong-armed into accepting an unfavourable deal.
