The real estate market suffers a lot of crashes every year and creates a long lasting dilemma for a small business. But a frequent question that arises in the mind is whether it is better to rent or own a commercial property? Buying a commercial property is a difficult step that even experts find it complex to understand. It is a venture full of risk. Agents, buyers, sellers and renters all can suffer the penalties of a rise or fall in demand. But, at the same time, if everything goes correct the rewards can be generous.
If you are deciding to buy a commercial real estate, it is very important to know the potential risks involved in every deal. Do not jump into hasty decisions when buying or leasing a building for a business in greater Noida because the last thing that you would want is to buy a property and then realize after few years that renting would have been better.
Some of the potential risks that you might face when buying a commercial real estates are:
- Location is a big factor to consider. It is most likely to backfire. The location that you choose today may not be desirable tomorrow. Of course, it can also be the other way round as well.
- Businesses invest much of their liquidity buying real estate. It is not easy to sell real estate, when the business is declining. But at the same time, the businesses would at least have something to sell when they are experiencing a downfall.
- Renters often do not pay their rent in time. At other times, you will have to spend money in various expensive repairing and maintenance costs. Flow of cash will become compromised if you are continuously forced to pay for these repairs and attorney fees in order to handle a tenant situation.
To avoid all these risks, it is better to gather some knowledge before signing any contract. Make frequent visit to the site or office space for lease in greater Noida with your agent as you may come to know about various problems after it’s already late to fix them.
Being a small business owner, you might not be an expert in dealing with commercial real estates. It is very much important to stay in contact with experts like a lawyer, accountant, commercial broker, mortgage broker. These people can help you determine the right time to buy or sell property, locations to consider and close the deal properly.
Factors to consider while looking for commercial real estate to buy:
- Location is a big factor. You want to be close to your workers, vendors or customers.
- After knowing the location, consider how the property was used, if there are any environmental or legal issues etc.
- You have to make sure that the property you choose, allows you to do what you need to on that property.
- There may be certain limits to the changes that you can make to that property. In that case you may need to follow those rules carefully.