Here are 10 tips to buy or sell commercial property for your business. Find your commercial property for sale in Lahore, Karachi, Islamabad Pakistan
Buying and leasing properties are two straightforward choices for carrying out your property business in Pakistan. To some leasing or renting is feasible while some purchasing provides a better value to the business. The latter nevertheless comes with much ease in the form of flexibility and freedom and is therefore essential for growing businesses. For businesses with small to the medium sphere, purchasing commercial properties has always been suitable. Also for the organizations looking to expand their business, it is much more suitable than to lease or rent.
Purchase of the commercial plots is however never easier. As for that matter a significant amount of investment, along with some good amount of energy and time is eventually spent. No matter if you seal the deal or not, time and energy are bound to spend.
One should find answers to a number of questions, before buying a (commercial ) property business, if there are. These questions could vary from one investor to the other. It could vary from the nature of one business to the other. One question could be the location of the property or more precisely that where one wants to have the business located. Another question could be how much money one is willing to spend or has in their budget. While some other questions could also arise and can have an influence due to the varying nature of the business or for that matter any other factor.
This article tends to explain the ten primarily followed practices while purchasing property business in Pakistan. Regardless of the business nature and size. Regardless of the investor’s psych or philosophy. Regardless of the budgetary capacity. These more than often not followed practices can be valuable to anyone interested in buying commercial plots for the business. Whether the property to buy is for a start-up business or it is to address the growing problems of the company. Whether the commercial property purchase is to expand the business or if the business is expanding and thus forced to grow in its size as well. This article explains it all and follows as:
1- Do complete research for commercial property:
Conducting thorough research is very important. Buying land in 2021, with the purpose of property business in Pakistan, it matters to a great deal. Even before one should buy some commercial property for sale in Lahore, for that matter, only after sorting-out its long-term business outputs. That is, evaluating that if there exists any potential to positively affect your business. At the same time, looking for such factors, relating to the property, which may hinder the growth of the business
It is also pertinent to mention that a decrease in the value of the property also adversely affects the property business in Pakistan. Subsequently, there is a decrease in the business capital. This is the reason why a fair amount of time spent on researching a suitable property retains a high importance.
2. Pay heed to the commercial property location:
Location holds a value which is second to none when it comes to property business in Pakistan. For that reason, purchasing a property for your business is of high significance just as the property location for a residential house matters a great deal.
The property’s location premises should be think in a rather logical manner. One should be able to address the key questions closely related to the property location: Will there be frequent visits from the clients? If yes, is the property location suitable for that matter? Will the location of the property help the business in any way? Is the property location easily accessible?
More often than not, it is preferable to have a property location near to the main roads and boulevards, due to the ease of access. With that said, if the clients’ visit is not involved in your business, if the clients’ dealing is mostly online or at remote locations, the location of the property may then be least of the worries; as for the property business in Pakistan. For that matter, a property with any location, and even far more from the town can be suitable. The property however would then be suitable for the operational purposes only.
3. Consider the parking and transport options:
Having appropriate transport and parking options near the property location can matter a lot. This not necessarily has to do with the clientele, but one’s own and staff’s ease and convenience for carrying property business in Pakistan.
Having the business property situated nearer to the public transports, as the metros, bus-stands, public-transport stops, railway stations, helps to a great deal. Reaching your business can become a headache if you are based far from the business’ location, and costs you a good amount of time and energy.
Buying a property near adequate transport options, also helps to attract valuable staff for your business, who otherwise may not join due to the limited transport options. Having a suitable car parking option also makes a great bit of a deal to employee and the employer’s life.
4. Be not be rigid but flexible:
When buying a property for your business, be flexible to the extent you can, and be not rigid as much as possible. This ‘being flexible’ and ‘not being rigid’ implies that when buying a property, that very time one should also consider the nearby available properties for the future strategy.
As your business will grow, you can’t help but have growing-problems of the business. To address such issues, one should also consider the nearby properties, while considering any single property. As your business will grow, the existing property would start becoming insufficient. Owing to that, the adjacent properties should also be a part of your future strategies, for a successful property business in Pakistan.
In addition to this, however, with human development, the adjacent locations may not remain vacant. For that matter, acquiring such a property, which one can modify as per the need in the near or far future, should be highly desirable. That nevertheless may not be permissible in certain property business in Pakistan.
Being familiar with the terms and conditions, before making a leasing and purchasing deal is highly important. Moreover, getting to know, if there exist any obligation and restriction, in regards to the change in the property structure, in accordance with the local housing authorities, can be a smart due-diligence.
5. Do budgeting for Commercial Property
Buying property for your business is not generally cheaper, in comparison to the property purchasing for residential purposes. In addition, for the new business one has to spend an extensive amount of money. Thus the budgeting, one should make, in the light of initial, medium, and long term purposes.
The initial purpose includes buying new furniture. The medium term purpose includes the maintenance costs which in a way are inevitable to occur. The long term purpose includes the upkeep of the property after a certain period of time.
It is, therefore, necessary to have your budget made for the purchasing of the property in light of its continuous and long-term upkeeping as well. Those who allocate all their funds for the buying purpose only, without considering the after-purchase expenses, face inevitable undesired inconveniences.
6. Don’t spend money on show-casing property
One of the simplest and wisest tips to purchase property for carrying property business in Pakistan is to avoid renovating and decorating the exterior of one’s property.
Look.
The property you are purchasing for your business will still be giving you a value, if your exterior is not luxuriously depicted. However the suffice good exterior looks cannot go un-avoided as well, but spending an extensive amount of money on its apparent good-lucks is not wiser at all.
Paying enough emphasis at the exterior does not result in an increase of the property value and neither does it play any role in better operations of the business. Even when you have your clientele visiting you oftenly, an average exterior is sufficient. For that matter, spending beyond a certain limit is wasteful.
7. Conduct a professional survey of the property:
It is one of the important, if not the most important, activity before purchasing a piece of land for your business. To have a complete and thorough survey, and that too a professional one, of the commercial premises of the location is extremely important.
A basic kind of survey provides no good value. Having a professional survey conducted, even with a little cost, should not hurt; on account of the huge sum of money which one invested. Conducting a survey study, does not only enable properties with commercial purposes in identifying the existing issues, but for private residencies as well. As it helps in indicating any existing issues, and resolving them if necessary.
8. Making the most of the loans with the lowest interest rates:
If someone opts for a loan when making a purchase for the commercial plots business in Pakistan, it is a safer practice to have a constant eye on the dynamic and ever-changing interest rates. Even though keeping an eye on does not stop the interest rates from going constant, it is however still considered sound practice. That said, there is still a use of having the interest rates observed: one can avail of an additional mortgage amount whenever the interest rates go down.
Whenever the interest rate goes down, apply for a loan for your business property again, or more precisely, the re-mortgaging of the property, which helps in enhancing the capital. This strategy is, in comparison to the business loan, is much cheaper. In addition to this, the taxes on the commercial mortgage interest rates are not receivable, which makes it an even better deal.
9. Decide with your head straight:
A very natural and straightforward advice is to not make any decision in a rash. A property should also not be an official purchase for the business, based on the face of it only. A decision, made in rash, or decision taken without the logical considerations, results unfortunately in the chaos.
For conducting property business in Pakistan, without performing due diligence, conducting surveys and researches, and considering other available and viable options, bestes a business and the financial investments made on it.
When an investor buys property with the mortgage loans taken, the renting costs understandably increases. However, if the business is already well established and there is a further room for its growth and improvement, the investment in that case is well worth it. That said, for the startup businesses, one should have a second thought for carrying-out the same strategy.
10. Lease a part of your property:
The property which someone has an interest to buy for the business sake, can possibly be larger in its area and sphere. The property in question , however is feasible and ideal, making it a very logical choice to go for. The extended area however which is unnecessary for your business can prove counterproductive when it will be of no value to either your or the business, unless it is not made use of wisely.
Letting go of such commercial plots can be a professional loss.
Thus, leasing or renting the unwanted part of the very property makes sense. While your business would be operating with ease on the vast area, the remaining part of the property when rented or leased can provide much monetary value to you on the personal or professional fronts, and even both. One may even spend this monetary value on returning the mortgage interest rates, and can use it as additional capital in the business, or could further use in similar instances. Wherever required or it gives a value.
Not only this, but when your business grows, the very leased area can then be un-leased to become part of the business. Thus the business growth is not only addressed but the flexibility and the immediate availability of the area is something out of some fairy tale!
Nonetheless, the investor should contain the excitement of acquiring such property business in Pakistan until the time terms and conditions of the very commercial property are not well-read and subsequently understood. The reasoning solely being that some commercial properties may not have the privilege to lease or rent part(s) of them.
For that very reason, one should buy such commercial property, which is seemingly ideal and rational from each and every aspect, yet larger in the desired area, after its clauses relating to the leasing and renting are clearly understood. Based on which one should be able to make a decision.
