I never thought I would be in a position to purchase Toronto commercial real estate. However, my mother received a substantial inheritance from my great-aunt and great-uncle, a couple that had no children of their own and clearly favored her among their various nieces and nephews. She shared that good bit of fortune with me, giving me quite a bit of money with which to invest. I immediately began to research to see how to go about purchasing a commercial investment property. It was a dream that I had for the past several years, but I did not think it would turn into a reality. The following tips stood out to me.
Commercial real estate is different than residential real estate. It even has its own vocabulary! In order to understand what is truly taking place in meetings and when reading through contracts, it is important to know what these common terms are. For example, the vacancy rate is the number of properties that are unoccupied in a certain area during a certain period of time. The loan-to-value is a number that shows how much you intend to borrow in comparison with the value of the property. Familiarize yourself with terms like these.
Take Your Time
Do not buy the first property that jumps out at you. Take your time, and see a number of different sites. Location is obviously important, but the price also has to be right. It is also crucial that the property meet your needs, which are unique to the buyer. Each time you tour a site, ask yourself how you can use the property, how much taxes will be, and what type of condition it is in.
Consider a Partner
Toronto commercial real estate listings are expensive. Regardless of the money you have available to invest, you may not be able to qualify for a loan on your own. Therefore, it is a good idea to research possible partners to work with. He or she can help you afford the property that you want but that might be out of your reach if you tried to get it on your own.
There is a lot to think about when it comes to investing in commercial real estate. The three tips listed above should help you get started on this journey. It may be a long road, but it is well worth it!