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Tips for Buying and Selling a Property

Posted On : Jan-16-2010 | seen (1167) times | Article Word Count : 517 |

Your business has grown over the years reaching a point when you start debating whether to buy a property for expansion or continue with the leased space. You will find a number of classifieds where you will find real estate for sale. However, it is up to you to measure the pros and cons and then decide on the issue.
Your business has grown over the years reaching a point when you start debating whether to buy a property for expansion or continue with the leased space. You will find a number of classifieds where you will find real estate for sale. However, it is up to you to measure the pros and cons and then decide on the issue.

When a real estate is put up for sale, the owner expects a down payment of 10% to 25% of the purchase price. This is a simple logic. They are also here to do business and will try to benefit from the deal. In contrast when you are leasing a space, you need not pay that much. If you are planning to take credit for the deal, then you just have to pay the rent of the first and the last months, which amounts to 10-15% of the cash required for the down payment. When you are investing a certain amount of money, you will have to think about the opportunity cost. Always calculate on the terms of return you expect from the investment. Buying a real estate for sale is not difficult. Maybe you have the capacity to make the down payment. But always think of the recurring costs. You should also consider the fixed and the variable cost in the process.

Think of all the expenses in the coming months. If you have taken a mortgage on a fixed rate for a long time, then think about the ups and downs of the financial market. When you are leasing a space, the rent will be regulated by the market. Once you decide to buy a property for sale, you should be able to determine the growth rate of the business. Many, who feel a need for their own space, actually want to take their business to a new level. If the company is incurring profits, and there is a probability of tremendous scope of growth, you can start thinking of buying your own building for the business. If the company is relatively new, it is better not to take such a risk at an initial stage.

Once you have bought a commercial property for sale, you need to manage it properly. You can hire either professional help, or do it yourself. Lease payments are generally deducted from the salary. There are however options where the lease payment should be done away with within a period of 39 years. When you are thinking of the tax factors, it is always better to consult an attorney or a professional who can guide you in this field. As you plan to buy a building, you can prepare a comparative study to evaluate the cash flow. When you do this, you should keep in mind about all the future uncertainties, and a thorough analysis of the present condition which will help you to analyze the situation better. You can also get some advice from the professionals in the field of commercial real estate. They generally simplify the process by stating the factors both positive and negative.

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Keywords : submit article, real estate, buying, selling,

Category : Finance : Real Estate

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