• Home
  • About
  • Recommended Reading
  • Disclaimer
  • Privacy Policy
  • Advertise / Contact

Invest It Wisely

Maximizing your EV in life

  • Home
  • Growing Your Wealth
  • Small Business Solutions
  • Healthy Living
  • Miscellaneous

Things to Consider Before Purchasing Your First Commercial Property

By Mich

Small business

Searching for your first commercial property can be an exciting, yet daunting and potentially risky task. Whether you’re looking for the ideal investment property, or a base to run your business from, there’s a lot of factors you need to first consider.

Here, we’ll look at some of the most important things to keep in mind before you buy your first commercial property.

Location and finances

Two of the most important considerations you’ll need to make include the property location and the financial implications.

Location is important because it determines just how lucrative the property will be. First and foremost, you need to ensure your customers and clients will be able to easily reach you. However, it’s important to do as much in-depth research into the area as possible. For example, what is the cost of living in the area? Does it have a high unemployment record? Does it appeal to your target market? If you get the location wrong, you could end up losing the majority, if not all, of your investment.

Just as important, is figuring out the financial costs of buying and running the property. Will the building be subject to VAT and what level of stamp duty will you need to pay? Then there’s the cost of insurance and tax to worry about. You’ll also have to potentially find up to 25% of the deposit to buy. Ensuring you have a good understanding of all of the costs involved is what will determine your success.

Renting or buying – which is right for you?

Owning your own commercial property may be the most attractive option, but that doesn’t mean it’s the right one for your business. There are a lot of drawbacks that come from actually owning a building, rather than renting one.

For example, if you plan to expand and alter your business direction, you could soon find the premises you bought no longer fit your requirements. You won’t have the same level of flexibility as you would if you were to rent a property through a company like GVA Grimley Limited.

So, if you’re happy with the way your business is now and you have no plans to expand anytime soon, buying could be the better option. However, it is worth looking into the pros and cons of renting too before you make a decision.

Overall, before buying a commercial property you should always do as much research as possible. Consider your needs and the amount of space you’re likely to need. It’s also sensible to weigh up the pros and cons of both renting and buying in order to establish which is right for you.

Related Posts Plugin for WordPress, Blogger...

Filed Under: Growing Your Wealth, Real Estate

About Mich

Mich is your typical middle class guy with a house and 2 kids minus the dog. He works in the IT industry and likes to muse about how to achieve more for less when it comes to money.

About Invest It Wisely

Invest It Wisely is about evaluating the choices that each of us face everyday. It’s about investing your time, your money, and your energy wisely, in order to achieve your goals. The end goal is maximizing your life expectation, and exploring the ways to get there.

Subscribe!

Subscribe via RSSSubscribe via EmailSubscribe via TwitterSubscribe via Facebook

Most Popular Posts

  • How to Get Fit, Feel Better, and Get Rid of Your Foggy Head: A Few Simple Steps
  • 3 Frugal Ideas for a Romantic Valentine’s Day
  • What Would You Do with a Million Dollars?
  • The Importance of Opportunity Costs, and Why They Should Not Be Ignored
  • What Do You Need to Get out of the Rat Race and Achieve Financial Freedom?

Categories

  • Avoiding Scams
  • Book Reviews
  • Crypto Trading
  • Currency Trading
  • Economics
  • Financial Freedom
  • General Reviews
  • Growing Your Wealth
  • Healthy Living
  • Insurance
  • Interviews
  • Investing
  • Market Analysis
  • Miscellaneous
  • Motivation
  • Opinion
  • Paying Down Debt
  • Philosophy
  • Precious Metals
  • Reader Questions
  • Real Estate
  • Relationships
  • Saving Your Money
  • Small Business Solutions
  • Stories
  • Uncategorized
  • Weekend Reading

Archives

Invest It Wisely Copyright © 2016
Creative Commons License
This work by Invest It Wisely is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License
Permissions beyond the scope of this license may be available at http://www.investitwisely.com/contact