As a commercial property investor, you may be considering your next big purchase, and in a lot of cases, you have an important choice to make. On the one hand, you could purchase (or self-finance) a new construction that has never been used before, or an existing building that may have been around for decades. Each comes with its own pluses and minuses, so you need to weigh your options carefully.
The obvious benefit of a new build is that everything should be in great shape and could be easier to modify to suit the needs of your business, or those of your tenants. Commercial Property to Sell noted that there shouldn't be any big surprises about how systems like heating or plumbing actually work, giving you more peace of mind on an ongoing basis.
Perhaps the biggest benefit of buying a long-standing building is that it isn't likely to cost as much as new construction, but it could also be more likely to sit in a good location. That twin factor of cost and prime location could make it easier to attract tenants on an ongoing basis, reducing vacancies and giving you greater return on your investment.
The most significant hurdle when buying a new building, such as it is, will be the cost of doing so, according to Appro Development. With a host of modern features and amenities, that may not be a deterrent, necessarily — especially because you can build that added cost into the rent you charge — but it will likely require more planning before the purchase.
With that lower initial price tag for an existing property comes a caveat: You may end up paying more for maintenance and repairs, among other things, in the long run. As such, you may need to account for those extra costs in your budgeting efforts, and also risk tenant dissatisfaction with the property if the need for such work is all too persistent.
Whenever you're looking to make a commercial property purchase, it helps to have an experienced professional by your side every step of the way. At Ray White Surfers Paradise, we are committed to guiding you through these processes with ease, so get in touch with us today to learn more about how we can help.