When you are thinking of buying your first commercial property, there are a lot of things you will need to consider about the process. Perhaps the most important is making sure you are capable of making that purchase without endangering other aspects of your personal or professional finances – and there may be more that goes into doing so than you realise.
First and foremost, you have to understand that in most cases, any lender you work with to help finance the purchase will require a deposit of at least 10%, and often you will need to have quite a bit more than that, according to Smart Property. This is due, in part, to the fact that closing a loan of this size requires you to pay a slew of fees and a sizable stamp duty. This is likely to add thousands of dollars to your costs that aren't built into the price of the property itself.
Of course, simply being able to put up the tens of thousands of dollars necessary for a deposit is just part of being ready to buy property. You also have to make sure your credit rating is as strong as possible, not only to ensure your application is approved, but also to help you get the best and most affordable loan terms, such as the interest rate on your new debt.
Furthermore, you will need to be able to prove that your finances are stable, meaning that you have a solid employment situation and you haven't moved around frequently in recent years.
In many cases, lenders will also ask you to detail your plans for the property, according to Commercial Real Estate. As they are trying to determine whether you will be a good investment, you might need to provide information about how you will be able to afford maintenance and management of the property and other considerations such as how you will deal with tenants and vacancies.
As a first-time commercial property buyer, you have to accept that there may be many things you just can't be expected to know about the process. For that reason, working with a reputable, experienced real estate agency like Ray White Surfers Paradise will help you ensure you get every aspect of the buying process right. We've closed countless sales for our clients and would love to be able to do the same for you. Get in touch with us today to find out how we can help.