If you are looking to buy a commercial property, there is a lot that needs to be considered. Of course, one of the main areas of consideration is the monetary side of things. While most people recognise the importance of putting together a financial plan when making such a large investment, they often make the mistake of missing out some of the important expenses. With that in mind, let’s take a look at some financial considerations for those buying commercial properties.
The Cost Of The Move Itself
Moving to a new office space can be a costly experience. Make sure you calculate the cost of moving your stuff from A to B. This does not only relate to the expense of packaging your furniture, putting it into a removal van, and offloading it at your new office. You also need to consider any expenses you will face in terms of backing up your data, transitioning your clients to your new place of work, and so on. This can be a lot more substantial than most people account for.
Future Growth Potential
When choosing a commercial property, your future growth potential needs to be taken into account. Where do you see your business in say, three years time? Does the place you are considering have the capacity to accommodate this? If not, would it be better to look elsewhere? After all, do you really want to go through the hassle of having to move somewhere else in a few years time? If the commercial property you have your eyes on has excess land, there may not be any need to move. Companies like ArmstrongSteel design and construct steel outbuildings. This could be an option if your business expands. Therefore, it is worth finding out whether you would be able to do this, if you would need planning permission, and, if so, if you are likely to get it.
See The Full Picture
You need to ensure you have the full picture of all of the costs that are involved. You may be subject to VAT, so it’s worth exploring this further. You also need to consider how much the deposit amounts to, Stamp Duty Land Tax (SDLT), running costs, repairs and maintenance, insurance, and local authority charges for services. It’s worth splitting costs up into fixed and variable expenses. This will enable you to plan better for your expenses. It will also help you to manage cash flow better; you will know how much money you need and when you need it.
As you can see, there is a lot that needs to be taken into account when buying a commercial property. This may be a little frustrating, as now your purchase seems more expensive than it probably did a few minutes ago. However, it is important to have a realistic idea of what you could need to fund. This will ensure there are no nasty surprises later down the line.