Are you keen on becoming a commercial property owner? If you’ve never been involved in the buying process, it’s essential to know that it can be complex, especially in the Australian landscape. In addition to knowing about building inspections and zoning laws, you will also need to assess environmental contamination and review any hidden easements. Sounds like a mouthful, doesn’t it?
Property experts are eager to advise first-time buyers to start the purchasing process by enlisting the services of the commercial real estate agent Essendon developers trust. The biggest advantage of enlisting the help of a professional is that you will have someone guiding you through the whole process, ensuring that nothing is overlooked. Keep reading as we share the top mistakes to avoid when you start the process.
Avoiding Basic Mistakes Makes Overall Navigation Simpler
Many locals have learnt the hard way that trying to navigate the commercial buying property can be tricky and, if not done properly, can see you having to cope with a significant financial loss. Our team of real estate experts has compiled a list of the top mistakes to avoid.
1. Mistake #1: Not Enlisting the Services of a Real Estate Agent
The number one mistake prospective property buyers make is to ignore advice to align themselves with a certified real estate agent who specializes in commercial properties. In addition to helping you navigate your way around all the red tape, estate agents can also assist with the following:
- Accessing exclusive off-market listings
- Securing more favourable purchase terms
- Using professional negotiation skills
- Sharing local market expertise
- Minimise risks associated with high-stakes transactions
- Manage property searches and evaluations
- Assist with admin and red tape
2. Mistake #2: Choosing the Wrong Location
A huge downside of being a first-time buyer is that many people are over-eager and tend to opt for the first building they can afford or where their bid was actually accepted. This sometimes happens without giving any consideration to factors such as accessibility, passing traffic, and future developmental potential.
Unless you’re purposefully looking for a property that’s remote (for industrial purposes), it’s essential to give serious consideration to how much traffic passes by the spot, and how accessible the area is for the intended target market. While you may not be planning to run a business out of that spot, somebody needs to, or else you won’t make the intended rental income. Ask yourself if you’d go to that building if you were a customer.
3. Mistake #3: Ignoring the Required Inspections
Another common mistake that first-time buyers make is to skimp or completely ignore necessary inspections. This means that you’re buying a space without knowing whether or not there are hidden defects that will cost you a fortune to repair after you’ve signed on the dotted line.
A few of the more common inspections to ask for include the following:
- Building inspections (plumbing, electrical, and fire)
- Structural reports (assessment of the roof and foundation)
- Pest inspections (especially termite inspections due to the structural damage)
Keep in mind that any of these issues can be costly to repair, especially if they are structural. Older buildings will also need to have switchboards and plumbing upgraded before you’ll be able to lease them out.
4. Mistake #4: Failing to Verify Zoning and Council Approvals
First-time buyers often forget to, or don’t know that they should, check the zoning for the intended property. This is because all commercial properties and building types are zoned and have different permissions allocated to them. Some zoning laws don’t allow an owner to use the building for what they had in mind.
There may also be outstanding council orders, previous building code violations, or fire safety compliance issues that need to be addressed before you can take ownership of the building. Keep in mind that if you have already signed the title deed, then problems become yours to finalise and sort out. This will not only be a waste of your time but could also cost a fortune in fines and penalties.
5. Mistake #5: Ignoring Environmental Risks
When you’re planning to buy property, you will need to be aware of what’s going on all around that specific piece of land. Failing to check for land contamination may see you being held liable for any future environmental penalties. This is especially crucial if you’re buying property that was previously used for fuel storage, chemical use, industrial use, or manufacturing processes.
Final Thoughts
Buying a commercial property in Australia can be complex and, if not done correctly, can lead to considerable financial loss. Key mistakes to avoid are trying to navigate the buying process on your own, not doing professional inspections, and failing to check zoning laws.
In addition to enlisting the services of a professional commercial real estate agent is not only recommended but crucial. This will ensure that the whole process happens according to legislation and with your best interests in mind. Make your purchasing experience easier and more efficient!
