Most of the population is under what can be seen as “pandemic fatigue.” It’s caused most people to ignore safety precautions. It’s also the reason why people are seeking to travel, even when restrictions have not yet been loosened.
If you’re in the business side of things, you’re mostly pining for a return to the days when you can look at different properties easily. It’s not whether they’re passing EICR testing or whether they’re structurally sound but it’s when you can buy without having to go on a virtual tour or transact purely online. The question this time, too, is whether you should buy a property during this time or not.
Here’s a collection of tips for when you need to buy that property. It’s not an easy decision, but it’s one you’re eventually going to have to make.
Why do you need to buy it?
You should mainly ask yourself why you need to buy a property for your business. This is important especially if the property is a “commercial” property, which you usually use for your business. There are many reasons behind this investment, but you should ask yourself if it’s worth it.
Having a commercial property does come with its perks. You enjoy fixed rates and tax breaks given to you because of the purchase. You also get direct control of the property, including how much the tenants should pay in rent. If you need to, you could also customize and tailor the building as needed by your business.
Questions to ask yourself
Commercial buildings are always a good investment but there isn’t one rule you should follow in buying such a property. There are, however, common guidelines that can help any small business owner get the start that they want. This also happened when you ask the right questions.
You should know what kind of property you’re after and what you’ll be using it for. If you’re expanding your business, most likely you’re going to rent it out. If you’re into the business of improving finances, then you might be buying to build equity.
There are lots of other questions you want to ask, but these stand to be the most important questions. You also need to set your objectives and know exactly what you want from that purchase.
Remembering what you know about properties
When you ask “when is the right time to buy?”, the answer will always be right now, at the moment. Markets are a bit tricky to navigate, and they are especially volatile during the pandemic. Investors that are veterans and know how to ride the market, however, should know how to navigate the tricky market.
Stick with what you know. You can also talk to people more knowledgeable about the market than you if you want. CRE investors that know what they want and know when to back out will undoubtedly score a lot of wins above others who are still trying to figure things out.
Things to consider when buying
If you are decided to buy, there are some questions you need to consider. Figure out if the location is somewhere you really want to be and review any legal considerations. You should also check out the physical condition of the area, as well as any zoning rules or building codes you may be aware of.
Lastly, you need to have adequate features like parking spaces as well as the flexibility to grow your business. Will this be able to add to your company or will it become something you’ll have to sell eventually? Consider these options to grow your company.
Can you afford it?
Finally, when you’ve decided about buying, ask yourself if you can really afford this property. In commercial real estate purchases, there is no waiting for a down market nor should you wait for a “steal” price. If a property falls within a range that you are comfortable with, then just buy.
People have a different definition of down markets and an okay price depends on your budget. What would be okay for you won’t be okay for others, the same as what’s a nice price for them isn’t so nice for you. Jump the gun when the price and all conditions meet your demands for purchase.
Buying commercial real estate is a lot like starting your business. There is never an okay time for you to start but now, at the moment, when you’re truly driven. If you’ve decided to expand your property with a commercial building, then that should be an iron-clad decision that you’ve picked right from the start.