When you’re buying a commercial property, for your business or for investment, there are many things to consider.
That's why we have put together a list of a few things you should consider before you buy or invest.
Getting a good return on investment
A good return on investment is essential, both in the short term through rental yields, and in the long term through capital gains. We recommend that you research typical rental yields in the locations in which you are thinking of buying your commercial property. Depending on how commercial properties have performed historically in those locations, you may find that, while rental yields are relatively low, good returns may be made in longer-term capital growth.
Quality lease structure. Quality tenants.
The lease structure and the quality of your tenants can affect the value of your investment. Whereas residential leases are typically 12 months, longer commercial leases are generally welcomed by commercial property owners because they can often increase the property’s value. The quality of the tenant, the security they provide on the lease, make-good agreements, and the frequency of rent and market reviews are all important considerations.
Location, location, location.
Choosing a good location is extremely important when buying a commercial property. The availability of car parking and the proximity to public transport can increase a property’s value. For example, if there is a high availability of other similar use commercial property nearby, this could lower your property’s value as tenants seek the most competitive deal on their lease.
Development potential
Development potential is another important consideration. Long-term returns could be greater if the property has scope for improvement and expansion. Check your lease structure for clauses that may allow or prevent development.
The right commercial loan for you
Finding the right loan to finance your commercial property is just as important as finding the property itself. Liberty Financial’s commercial loans are broad, flexible and competitively priced. Whether you’re investing long term or you just need finance for a short-term project, Liberty can help.
We think this might be just what you need
Liberty Enterprise
Finance for commercial properties, with great rates and fast turnarounds.
You may also want to consider
 A low deposit, flexible loan term option that requires no additional financial verification. |
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