A huge part of real estate is knowing when to buy and when to sell. Keep in mind that an influx in the market can be a precursor to your financial success. With that being said, it’s important that you don’t rush into things when you’re looking to get into commercial real estate. This is because purchasing real estate takes a big commitment, so you’ll need to be knowledgeable and prepared about what you’re getting yourself into.
In this article, we will share four factors that you must consider when buying commercial real estate:
The main factor that you have to consider is whether or not you can afford to buy a piece of property. The state of the market matters very little if you can’t afford to buy the property. The last thing you want to do is to make a purchase that you can’t afford solely because you’re getting a property for a good price. Even if the property has prices that are trending down, your budget and resources must be the deciding factor when making purchases. Likewise, you’ll need to understand that there is a risk to purchasing property, so it’s best to err on the side of caution when making significant financial decisions like real estate.
Jumping off from the last point, you also don’t want to buy commercial space if it requires you to take on any form of short-term financing. Although it may be convenient, short-term financing can get rather expensive down the line due to high-interest rates.
To add to this, you also have to be prepared for any unexpected scenarios that could affect your finances. The recent global pandemic should be enough to emphasize how volatile commercial real estate is, as things can turn from good to bad almost instantly. This, on top of the loans, could cause you a lot of trouble if the situation goes awry!
If you have your finances in order, it’s time to think about the state of the market and only invest at the right time. You have to think about supply and demand before making any commercial real estate purchases. To understand this fully, you must take the different types and markets into consideration, and a great example of this is buying into office spaces in a post-pandemic world. In fact, former Google CEO Eric Schmidt has emphasized that there will be a massive demand for office spaces as the world approaches normalcy. If you’re looking for office commercial real estate, do check out the listings on our website!
You should also look at a property’s potential for growth when deciding to make real estate purchases. The main point that you have to understand is that cities are constantly growing and developing. What may have been considered a stagnant area of a city could eventually grow into a bustling and desirable piece of commercial real estate. What you’ll want to keep an eye out for are any signs of movements within a city. If a big corporation moves into a city, it would be a safe bet to invest and buy property in that area!
It’s important to be thorough when making big financial decisions. Rushing into things will just make you more vulnerable to unnecessary risk, especially when it comes to commercial real estate purchases. Hopefully, you will keep all of the factors included in this list in mind when you’re looking to invest in commercial real estate!
If you’re looking for a real estate agent to help you find the right property for you, look no further as I can help you with any and all of your real estate needs. I can help you find the commercial property that’s right for you in Brandon, Virden, and Manitoba areas. If you want to know more about the properties, check out the listings posted on the website today!
The Myth of “Love at First Sight” When Home Buying
“Love at First Sight” should be replaced in your mind with “look before you leap.” The myth of love at first sight when home buying has gotten many people in trouble financially and emotionally – and it could all be avoided by keeping some tips in mind before choosing based on love at first sight.
You may fall in love with the first house you lay eyes on. It may seem to have everything you’re looking for in a dream home. But, you’d be wise to check out and compare others to be sure it’s what you truly want.
In fact, it’s best to view as many homes as possible to ensure you’re making the correct decision. You don’t have to look at every home in the area, but comparing at least three is the rule of thumb.
One reason to compare and shop around is that you may find other features you like more in another home. You can then compare the features and decide which you like best and which would benefit you the most as a homeowner. And it could have a lower price tag.
Rushing to closing without the proper inspection and close examination for red flags that might haunt you later is one of the worst things you can do in the home buying process. A property inspection performed by a certified Inspector is a must with older homes as they may uncover deficiencies such as suspect foundations, issues with the furnace and/or homemade plumbing sytems put together during renovations that don't meet code regulations.
Checking out other homes can also give you a good idea about the resale value of homes in the neighbourhood or other neighbourhoods you may be considering. When you purchase the best home in the area, know that your home may not appreciate in value as much as other homes surrounding you.
While you may love the home – take into consideration where it’s located. A great house in a bad neighbourhood may become a nightmare you have to live with even if you’re in love with the home itself.
Think about your future plans before falling in love with and purchasing a home. Is public transportation something that you need to look at? Are you far away from your work and would have to spend hours in traffic both to and from work? Look at your lifestyle and find out what’s really important to you.
You’ll likely walk through the home several times before you sign on the dotted line. Each time, be sure to scrutinize the property like you’re making one of the most important decisions of your life – because you are.
If you take your time, be honest with your real estate agent and your lender and don’t jump in to buy a home at first glance, you’ll be much more confident in the decision you make.
Whether you live in Brandon MB, Virden MB or searching for acreages in these surrounding areas, the search can be strenuous and time consuming. You can call on me to be your trusted go to REALTOR®, with insight on all new listings and recent home sales, within our local real estate market.