Buying commercial property is always something you should be careful about, but you should be especially wary when buying commercial property somewhere such as London. Here are some tips on what to consider before making the next move of talking to commercial agents in London.
Carefully Consider Location
When considering buying commercial property you should consider the location very carefully before talking to commercial agents in London. If you pay a lot of money for property that is in the best area now, the case might be very different in years to come and you might waste your money. The reverse is obviously also true. Rather than choosing somewhere ‘in’ but unpredictable, it might be better to choose an area that is generally good but not risk massive loss. Similarly, you may also find that your budget doesn’t cover certain areas and in this case you should always go for something within your budget, rather than risk your financial stability.
Carefully Consider Costs
Another thing to consider before talking to commercial agents in London is the general costs of buying property, including deposits and any legal costs. Evidently it is expensive to buy commercial property, so you should ensure that you are not spending money that you might need if business slows. On the one hand, you will have property that you can sell. But you may also find that you have to sell the property for less than you bought it for and thus lose out.
Including Unexpected Costs
Similarly, you also need to consider unexpected costs associated with buying property – and these often depend on what you are buying the property for. If you are buying the property to rent out to people then you need to consider how you will cope if renters stop paying. Can you afford to cover costs if tenants don’t pay? Can you afford legal costs to chase these payments? If you are starting a business then you also need to evaluate the potential success or failure of the business – it’s generally not the best of ideas to buy property for a business that has not yet shown any success. Other costs, such as building repairs and commercial property tax, can also creep up on you so it is important that you consider this too.
For more information and to talk to commercial agents in London visit Davis Brown.