In the last three years, investing in commercial property has not been as rapid thanks to Brexit. However, this does not mean that investing in commercial property is a bad idea. As per the Property Data Report by PIA, around 13% of all the buildings in the United Kingdom are commercial properties with most being offices, retails, industrial, and leisure properties. Here are the steps you should consider following when looking to invest in commercial property in 2019.
Find a commercial property
When looking for a commercial property for sale or to let, you need to know the best time and place to find one. Generally, you should weigh your options in line with the value and supply of commercial property and also check how available mortgages are for commercial property. You could consult a commercial property agent to get a better direction on this.
Think of the main uses of the property in line with your needs and also with the needs of tenants if you are seeking to let out. The size, location, and infrastructure are also major factors when it comes to investing in commercial property.
Get Your Money Right
Investing in commercial property requires that you do your math right. First of all, for any property you think might suit what you want you should at least have its deposit upfront. Aside from the deposit, other costs will include VAT, Stamp Duty Land tax, renovations where necessary, maintenance and consultations. Also, do not forget that the building will need to be insured. For non-domestic buildings, business rates billed annually also apply.
With the help of a commercial mortgage broker, you could be able to secure a loan with a great deal. There are a lot of lenders in the commercial property market and repayment time ranges from about three to 25 years. Investing in commercial property demands a lot of money and commercial mortgages provide the solution to this fact.
Make an Offer
After you have found a commercial property for sale and have your money in place plus the commercial mortgage, you now need to make a written offer to the seller or the vendor of the property. Also, follow up with the local authority to make sure that the property is at a right standing with construction and property regulations. The vendor will either agree or decline your offer depending on their terms and conditions, your money offer and payment period.
Seek a Solicitor and Finish the Sale
After the agreement has been finalized and everything is in order as per commercial property laws, it is time to close the deal. A solicitor will help you make sure that the sales agreement is fare and all the key points in the written agreement are well outlined as per the satisfaction of both parties. Your solicitor together with your commercial property agent will play an advisory role to help you get the best deal.
In 2019, many investors are expected to still go with prime offices especially in the cities in Southern Europe and Germany. You could have a look at the top trends in the 2019 commercial property investment to see which side you would prefer leaning towards. An informed investor reduces the risk that comes with any type of investment.