Buying commercial real estate 101
Buying commercial real estate 101
Please click podcast listen to Cantonese interview
Purchasing commercial real estate is much different than purchasing a home.
1) Before buying, make sure that you consult a tax adviser for assistance. A tax expert can advise you on how much the property costs and what amount of your real estate income will be taxable. Consider any tax deductions you might get from your commercial real estate investment. Investors can get interest deductions and depreciations benefits too. Work closely with your lawyer as well for all the local legal matter advice.
2) Secure appropriate financing before going forward. Commercial property loans and the establishments that finance them are not the same as the world of residential home finance.
3) Different commercial brokers represent different parties. eg. Retail, office, mall, hotels, apartment building, recreational properties, agricultural, etc. Some real estate agents will work with Landlords & tenants, but there are also some that only work with tenants.
4) Knows your needs before you even start looking for a commercial real estate. If you want to buy for personal use, draw up a list of specific attributes your office space must have, number of meeting rooms, and available bathrooms, etc. Keep in mind that the size of a property can be very important if you’re the owner of a growing business. To avoid the need to move in the future, invest in a piece of commercial property that allows for ample growth.
If you are purely investors, have your agent to provide you as much info as possible regarding the unemployment rates income levels, and expansion rates of the area. In addition, you want to keep in mind what else is close to the property. Any place that supplies a large number of jobs to the economy can raise the resale value of any property and make it much faster to sell if you decided to go that route. Big employers might consist of hospitals, factories, or universities.
5) When you’re a new investor, the best thing that you could do is to try to learn one kind of investment thoroughly. Select one type of property that appeals to you, and devote your undivided attention to it. It is in your best interest to stay focused on one type and do your best, than to spread yourself too thin and just do average at multiple investments.
Please click podcast listen to Cantonese interview
Purchasing commercial real estate is much different than purchasing a home.
1) Before buying, make sure that you consult a tax adviser for assistance. A tax expert can advise you on how much the property costs and what amount of your real estate income will be taxable. Consider any tax deductions you might get from your commercial real estate investment. Investors can get interest deductions and depreciations benefits too. Work closely with your lawyer as well for all the local legal matter advice.
2) Secure appropriate financing before going forward. Commercial property loans and the establishments that finance them are not the same as the world of residential home finance.
3) Different commercial brokers represent different parties. eg. Retail, office, mall, hotels, apartment building, recreational properties, agricultural, etc. Some real estate agents will work with Landlords & tenants, but there are also some that only work with tenants.
4) Knows your needs before you even start looking for a commercial real estate. If you want to buy for personal use, draw up a list of specific attributes your office space must have, number of meeting rooms, and available bathrooms, etc. Keep in mind that the size of a property can be very important if you’re the owner of a growing business. To avoid the need to move in the future, invest in a piece of commercial property that allows for ample growth.
If you are purely investors, have your agent to provide you as much info as possible regarding the unemployment rates income levels, and expansion rates of the area. In addition, you want to keep in mind what else is close to the property. Any place that supplies a large number of jobs to the economy can raise the resale value of any property and make it much faster to sell if you decided to go that route. Big employers might consist of hospitals, factories, or universities.
5) When you’re a new investor, the best thing that you could do is to try to learn one kind of investment thoroughly. Select one type of property that appeals to you, and devote your undivided attention to it. It is in your best interest to stay focused on one type and do your best, than to spread yourself too thin and just do average at multiple investments.
Tina Mak Personal Real Estate Corporation
Your Vancouver Radio Realtor
(The Bridge from East to West since 1992)
#1 Female Agent since 2002 @ Coldwell Banker Westburn Rlty
President of AREAA Vancouver
Canadian Ambassador of Coldwell Banker 2011
Co-host of AM1320 Radio Investment Show
International President's Circle Award
Gold Master Medallion Award in Vancouver Real Estate Board
5489 Kingsway, Burnaby
B.C. V5H 2G1
Tel: 604-412-5860
www.TinaMak.com (English)
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www.WestNoblerealestate.ca (Commercial site)
Email: tinamak@tinamak.com
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