What to consider when purchasing Property?
What to consider when purchasing Commercial Property? Are you in the market for commercial property but wanting to make sure you’re buying right? If you answer ‘yes’ to this, there are certain things to look out for and investigate.
Are you in the market for commercial property but wanting to make sure you’re buying right? If you answer ‘yes’ to this, there are certain things to look out for and investigate. As an informed person, you can watch for the ideal property and market conditions to suit your budget. ‘Timing is critical’ with property purchases, for all locations and property types.
If you are an investor and considering a property purchase, there are certain precincts that are in high demand and active; research the property opportunities and the location as your first step in the process.
City and suburban property markets are different and are driven by contrasting key performance indicators. Consider this list for starters, as there are cycles in commercial, industrial and retail property:
- Vacancy factors by precinct and property type
- Supply and demand factors for property types
- Enquiry rates for locations and space to purchase or lease
- The number of properties on the market currently
- The time on market for achieving a sale versus a leasing transaction
- Prices and rents and the variations during the year.
Different times of the year will see modified market conditions; they can be suburb or precinct specific. You can choose the ideal time to move on a property purchase.
If you are a potential purchaser of property in Durban over the next 12 months, consider undertaking research into these factors:
- The market rents that are being paid by tenants for existing leases by building type and location.
- Prices per unit of area for the different property types that you are interested in, because these differ significantly from one area to another.
- The business sectors of the property market that are showing growth or change.
- The supply and demand for property currently and the predictions over the coming 12 months.
- The overall business sentiment for the city and the suburbs.
- The employment rate and the levels of change over recent time.
- The growth suburbs for newly constructed buildings, be they office, industrial or retail.
- The capitalisation rate that you can achieve for investment property locally considering values or prices paid and market rents.
When you consider these property facts in and around Durban, there are opportunities to work with and watch. In addition it is critical to work with property specialists that can guide you and advise on factors to consider. Contact in2assets to assist with the purchase of commercial & industrial on 0861 444 769, or visit their website www.in2assets.com