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Our mandate is to assist you with finding right commercial property suite to your requirement and budget.
Investing in commercial real estate can be a very profitable venture. Most commercial spaces have the potential to bring in much more money than what goes out for the mortgage loan. In order to make any purchase worthwhile however, it is extremely important to conduct a thorough commercial property analysis beforehand. Several factors will determine whether or not your investment will be rewarded with profit and growth.
The old saying "location, location, location" definitely applies when it comes to buying commercial property. Where the building is located will determine how easy it will be to attract customers or how easy it will be for employees to get to work. In general, buildings within city limits are more valuable than those outside the city and those closer to the center of town and major roadways are worth more than those on small or obscure side streets. The area around the building will also determine the value and profitability of the real estate. The nicer and cleaner the area, the safer your investment will be.
During your commercial property analysis, you should make sure that the price offered is based on the fair market value and that it closely resembles the price offered for comparable buildings in the area. Your analysis should also include an inspection of the building to find out if there are any issues or problems that would bring down the asking price.
Calculating the amount of money you are likely to bring in each month from renting the property is an important part of the commercial property analysis. You will have to make a monthly mortgage payment and profit; you will need to make at least that much back in rent plus some. This means attracting and keeping tenants will be essential. Check out nearby properties to discover if they have good rates of renting and retaining tenants. If buildings in the area have changed hands often in the past few years, the realty may be a financial dud.
You will spend a fortune getting into a commercial property mortgage with a twenty percent or more down payment, closing costs, and insurance fees. One thing you may forget to plan for is property tax. These can be very hefty in some places depending on the city and state tax codes and they may add thousands of dollars to your investment expenses. Be sure to check into any local tax incentives available and figure out how much you will have to pay each year. Factoring in these taxes into your budget may limit the price tag of the property you buy.
Each city has its own set of zoning laws setting forth how certain areas of town are allowed to be used. Part of your commercial property analysis should include finding out what the zoning laws are and if you will be able to lease out your building as you please. These laws can sometimes be confusing, so be sure to learn all the details before making your purchase. A commercial property analysis that takes all the important aspects into account is the best way to assure yourself that you are making a sound investment.
Sunny, is committed to higher standard agents that produce higher standard results. His ultimate goal is to provide you with excellent service while protecting your confidentiality.
Call Sunny Gandhi to assist you with your commercial real estate needs and to arrange an one on one meeting.
Sunny Gandhi, Real Estate Sales Representative
Royal Star Realty Inc., Brokerage
Bus: 905-793-1111 Ext: 204
Don't be afraid to ask lots of questions and request help from professionals when needed.