Buying a commercial property is a big investment that comes with
a series of benefits, but the commitment required shouldn't be
overlooked. If you've been thinking about whether or not to
make the leap, here are a couple of pros and cons to consider
before locking anything in.
Sell it and make more money
The property market in Sydney is booming at the moment, with the
Parramatta region in particular set for huge economic growth, as
per my blog "
The sky apparently is NOT the limit for Parramatta." With
all this growth there is potential for your commercial property to
increase in value so you could make a pretty penny when you decide
You've got the power!
When you own a property, you have the power. This means design,
time frames, fit out, layout, extension plans and all of your dream
ideas for a commercial space can become a reality. You have the
final say on all decisions which also makes it easier for you to
oversee how much is being spent and what work is being undertaken
on your premises – stay on top of it and you won't be
blindsided by unexpected costs as you may be if you were
Having the money to purchase
As I've already mentioned, the property market is booming in
Sydney at the moment which is excellent news if you're looking
to sell. However, buying can be a different ball game altogether.
Financing commercial property is expensive, with most sellers
wanting payments up front. This means that you will generally
require a large amount to enter the market.
You're locked in
Let's propose that your new business is more successful than
you anticipated and you need to move to a bigger premises to keep
up with demand. If you have a mortgage to repay, you may end up
having to stay in the same location for quite a while, which may
limit the ability of your business to grow and expand. Likewise,
there's a chance that your business may not take off the way
that you'd planned and you won't have the flexibility to
downsize premises as easily as if you were leasing – not an
ideal position to be in if your outgoings are less than you need
them to be!
Will you ever stop paying?
Sadly, even though you've purchased a property, you will
still need to make payments of some sort. Assuming that the
property is mortgage free there are still costs associated with all
of those amazing changes to the layout and the extension you
decided to complete - not to mention the ongoing payments such as
council rates, repairs and maintenance costs associated with owning
a commercial property.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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A lessee will need to demonstrate that the genuine interests of the lessor will be protected if relief is granted.
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