It’s great that you’re planning to buy a commercial property in Canada to realize your entrepreneurial ambitions. You however should never rush ahead with the transaction before understanding the market well, and also before considering the key aspects involved with it.
After all, there will obviously be many questions in your mind, and some doubts as well, when you decide to buy a commercial property. You should be confused about where to buy that property, how much to save for the down payment and how much finance, whether should to buy at all or rather lease, and all that.
Make sure you have all the bases covered before reaching the table to seal the deal. If possible, seek professional help along the way to make the entire process smooth, and to get the best possible commercial property across Canada.
Here are some of the key things you should look for when buying a piece of commercial property.
1. Thoroughly assess the location on key parameters
Location is everything when you have a business idea in mind. If the location is not helpful, chances are your business too might fail to prosper beyond a point. The key is to assess the neighbourhood thoroughly on various parameters before taking a decision. You should always be checking whether the locality has all the amenities you may need to run the business successfully. Make sure you have checked the area on the basis of the transportation facilities, proximity to the utilities, future growth potential, crime rate etc. Once you’re fully convinced about the location’s viability for your business, you can always think of the next step in the buying journey.
2. Know the finances involved with the deal
When you’re planning to buy a commercial property, you know nothing would come cheap. And chances are, you must have done your maths, and calculations as well, in advance to handle the budget swing that is so common with real estate transactions. While you’re ready on your part, how about the scenario where the asking price of the property goes a bit beyond what you’d imagined? And what if the down payment you planned paying upfront is not what you thought? These types of challenges are fairly normal to commercial deals and you can navigate them successfully if you know how to get approved for the finances. A broker can help you get both, a good mortgage financing and a decent rate as well.
3. Do some search on the builders
You’d ideally not want to deal with a builder who is notorious for shady commercial real estate deals. Worse still, you’d want to avoid a situation where the builder has the habit of running out of money for their on-going construction works yet always looks for new parties to finance their dream projects. Good builders are out there as well and you should bump into them rather than engaging with those with bad repo in the market. After all, when the builder is dishonest with money, there is a high probability that their projects too would reflect some of their character traits. So, make sure you choose the right builder with an impressive track record, and a good repo in the market as well.
4. Consider due diligence
Due diligence is a must when you’re out in the market looking for a commercial property. It can bring you all the information worth knowing about the property. When a due diligence is performed, the focus is on reviewing and verifying various elements related to the property such as the site assessment from environment perspective, building condition inspection, knowledge gathering on the title, taxes, owner’s expenses on repairs, bills for maintenance, utilities etc. When you have done a due diligence on the property, you can be sure about its authenticity, and thus move ahead without any apprehension in the mind.
5. Understand the various terms of the purchase agreement
For an entrepreneur, buying the right commercial property is always important to expand their operations and achieve the true potential of the business. Since commercial real estate transactions tend to be complex, it makes sense to seek professional help in the form of a lawyer and a broker to get familiarized with all the various terms and condition of the purchase agreement. Some of the key things to understand would include the rights in regard to easement, encroachment, encumbrance, title search, property’s legal address, environmental site assessment and so on. Once a buyer is aware of the key terms of the agreement, chances of getting hands on the right property are always there. The broker will obviously help with other key aspects as well including mortgage financing and low interest rate.
Real estate deals may not often decide the fate of a business but sometimes they become the key factor in the growth and success of an organization. Keeping this in mind, you should always focus on buying the right commercial property to put your business on the right track and achieve value for years.
FRENCH TAGSAcheter un immeuble commercial | Immobilier commercial Montréal