6 Things to Consider Before Buying an Office Space

Every business is unique in its own sense; hence you must figure out several things before buying an office space. Below, we have given some points that will help you buy an office facility.

1. Set your budget

Your budget determines which properties you can afford and which you can't. If you start your exploration without setting a budget, you will end up disappointed; So, figure out how much you can invest in buying a commercial property/ office space in Canada. If you do not have enough money, you can consider leasing the property with initial down payments and then mortgage payment for the left amount.

2. Pick the right location

Location plays an essential role in real estate; The same is true for commercial spaces. Amenities and ease of access are vital to creating a perfect image of your business. Moreover, location decides the range of amenities available to the people who will come to your office for work every day. If your business is collaborative, pick a site with plenty of restaurants and bars. Similarly, if you want to keep your business anonymous, consider buying a less expensive office on a side street.

3. Find a space that suits your business domain

Choose a space that suits your business domain and your employees. Like, if your work involves a space where employees need to talk a lot on the phone or with clients, consider buying an office in a busy street. And consider a quiet office space in Cloverdale if your work involves lots of creativity and concentration. Likewise, a business that works internationally needs to find an office that can make its employees feel comfortable during day and night shifts.

4. Look for the future opportunities

Invest in a commercial space that can accommodate your business and employees in case of expansion- It may be difficult for you to find office space urgently. Moreover, there are chances that your business might not be received well, so you may need to sell the property for which you will need buyers.

5. Consider subletting the premises

Some companies buy a large office space to ensure they have enough space to accommodate their business and employees when they expand in future. You can consider subletting the property if your office space is too large. It will give you two benefits- first, a regular cash flow and second, a well-maintained office space.

6. Take the help of a realtor

A commercial realtor will help you find the office space that suits your business needs. Some legitimate realtors have the correct knowledge and experience to inform you about the current commercial property rates and negotiate the price of the property on your behalf.

At last, real estate investment is one of the crucial investments in anyone’s life. Therefore, it is better to make a decision that you will not regret in the future. We hope the above points will help you finalise your decision. To get more information on real estate investments, stay tuned.

Canada’s real estate market is expected to drop 24%: Will it impact you?

Oxford economics has predicted that by 2024 property prices will fall by 24%. Tony Stillo, Director of Canada Economics, states that the house prices themselves are the prominent reason behind this. In late 2021, real estate prices got 19% higher than a medium-income householder borrowing capacity. And in 2022, they are expected to increase by 38%, which is beyond the affording capacity of many average householders.

According to him, the second reason is the recent hike in interest rates by the bank of Canada. And it is predicted by oxford that this year there will be two-three more hikes. By mid-2024, the policymakers are expected to increase the interest rate to 2%. Oxford Report has also referenced the new policies made by the federal Liberal government.

How will it impact the investors?

Before jumping into this, let’s first remember the prediction made by oxford economics in the year 2020. According to them, the real estate market is expected to fall by 9% in 2021 but did this happen? You might have heard about the story of a gentleman named Marcus Licinius Crassus, who was the richest man in ancient Rome. He applied various moneymaking schemes, such as he used to turn up to burning buildings/houses and offering the owner to give them to him at decreased prices. If the owner refused to do so, he with his fire brigade would cheer the house burning. If he accepted the proposal, his slaves would put off the fire.

Real estate does not burn like houses, but the wrong decisions can make or break your investment.

If you get panic hearing such a forecast, you will be less likely to make a good decision. Rushing into a financial situation and selling your home at a price that is not worth its value will not give you profit at any cost, rather can drive you to huge losses. If you are anxious about your investment, it is best to take advice from the best commercial realtor in Cloverdale.

Why do you need to stay calm?

Oxford economics does not consider two crucial factors, such as:-

• The construction cost includes construction materials, labour costs, insurance requirements, etc.
• Every state and province in Canada is not the same. So, this report does not apply to all areas. Like, in the BC and Fraser valley areas, where the population is growing, and according to an estimate around 1.2 million immigrants will move to Vancouver in the next three years.

What does it mean for sellers and homeowners?

If you already have a home and don’t want to sell it, don’t worry; it will still be a valuable asset, which will benefit you in the long run despite the current projection. Continuing to pay for your house will help you own an asset that will pay you sooner or later. If the price drops as predicted and you are planning to buy a home, you can purchase a commercial property for sale near surrey at an affordable price. But before buying any property, make sure you have a pre-approved mortgage.

The bottom line

Real estate is a constantly changing market, so it is normal to get anxious. But ensure you don’t take big decisions in haste and cause yourself trouble. It’s better to consult a real estate expert before taking any big financial step.

Things to consider before buying a house

Introduction

If you're on the hunt for your first home, it's a great time to be on the market. Home prices are still low compared to historical averages, interest rates are relatively stable and there are plenty of commercial realtors available in most parts of the country. Still, there are many moving parts when buying a house — even if you've all the money and credit history in place. So before jumping headfirst into this process, here are some things to consider...

Rent or buy?

When thinking about whether or not to buy a house, it can be hard to tell if renting is right for you.

When deciding between renting and buying, there are some factors that should be considered. The first thing is whether or not you plan on staying in your current home long-term. If this is the case, then buying may be more financially beneficial because buying gives you an opportunity to build equity while still collecting rent payments from renters at their homes around yours—this means that if things don't work out as planned (such as losing your job), then at least there will still be something valuable left behind once all debts have been paid off and closed escrow accounts closed out by banks/mortgage companies etc., which could help ease any financial burden made during such times (and potentially save money).

Another thing worth mentioning here is how much money each option costs per month/yearly basis; renting tends towards lower prices but requires more effort/work overall; whereas buying allows one person access to multiple properties without having too much overhead involved such as maintenance costs associated with property upkeep during regular visits."

Where to live?

Where to live?

The first thing you should do when deciding where to buy a house is to find out what's offered in the area. The best way to do this is by looking at local real estate listings or websites such as Zillow and Trulia. You can also ask friends and family members who have recently bought homes in the area, but be careful not to rely too heavily on their advice—they may have different priorities than yours!

When choosing a neighbourhood, there are several factors that matter: crime rates; schools; commute times (which may include traffic); amenities like parks or grocery stores nearby; accessibility from public transportation systems like buses or trains; availability of services such as healthcare clinics nearby so that if something happens while you're away from home then someone else can take care of things without having any knowledge about how difficult it might be for them too

How much can you afford?

Calculate how much you can afford

When calculating how much you can afford, consider:

• Your income. This is the amount of money that you make per month, as well as any other sources of income such as pensions and savings.
• The cost of renting or buying a property in your area. If renting, calculate what it would cost to rent a similar property on an annual basis (for example, $2k per month). If buying a house outright then consider the purchase price and ongoing costs like mortgage repayments or maintenance fees over the lifetime of ownership (for example $450k v $350k).
• How much equity has been built up over time through saving into an account specifically earmarked for buying/building up this asset; this may require selling off some other assets first but will allow more flexibility when choosing where exactly within Australia's capital cities we would like our new home base!

What type of mortgage is right for you?

Before you decide to buy a house, it’s important to understand the different types of mortgages. Your credit score will help determine which mortgage is right for you, so if you have bad credit or no savings at all and want to borrow as much money as possible, then a high-risk loan may be best for your situation.

If however, like most people who want to buy their first home (or any other investment), then we recommend that our clients take out an adjustable-rate mortgage (ARM) with an interest rate cap or early payoff option available in order for them not have too much risk when refinancing later down the road when their incomes increase significantly over time.

What features do you want in a home?

When it comes to house hunting, there are many factors to consider. One of the most important is your own personal preferences and needs. Let’s take a look at some things you may want or need in a new home:

• Location: Where do you want to live? Is it near your family? Do you like the idea of being able to walk everywhere from work or school? Or would one more mile be too far away from what matters most in life (such as friends)?
• Size: How much space do you need? If you have children under 3 years old, then probably not much room would suffice—but if they’re older than that and still living at home with mommy & daddy then maybe two bedrooms plus an office/ playroom will suffice until such time when they move out on their own! However, if this isn't true then definitely look into purchasing larger properties because bigger = better quality materials used throughout the construction process - especially since these types Of buildings tend To last longer than smaller ones."

The next steps in buying a house.

The next steps in buying a house involve:

• Make sure that you have the right financing. This can be one of the most important parts of your journey, as it will determine how much money you need to borrow and what type of interest rate you'll have to pay on top of that amount (if any). Make sure that whatever company is providing this service has experience working with people like yourself—and make sure that they're willing to provide references for other clients if needed.
• Identifying the right home for yourself and your family members. You may not be able to identify every single detail about every single room in an existing home before moving in, but at least start by looking at photographs online or at open houses held by real estate agents near where you live; then walk through each room with an agent present so he/she can point out any potential issues before making an offer on one particular property based solely on its features listed above without delving deeper into specifics regarding amenities such as extra storage space downstairs vs upstairs kitchen cabinets which could prove useful later down the line when planning meals together etcetera...

If you plan well in advance, with some research and expert opinion, finding your first home can be smooth.

If you plan well in advance, with some research and expert opinion, finding your first home can be smooth.

Start early: It's essential to start looking for a place as soon as possible so that you can save time and money by avoiding bidding wars.

Have a plan: You'll succeed more if you know what kind of neighbourhood or location is right for you before starting the search. Of course, this doesn't mean that it's impossible to find an unexpected gem later on—but if possible, try not to let such surprises keep from happening altogether!

Conclusion

You’ve probably heard the saying, “Location, location, location.” It is especially true when it comes to finding your first home. You want to be able to walk or bike to work or school and have access to transportation options like public transportation and biking trails so that you don’t have to rely solely on owning a car. Also, consider how much time it will take you each day in order for you get out of bed at 5am for an early shift at work or make sure dinner isn’t burnt by arriving home late from a long day at school!

What is the difference between Mutual Funds and Real Estate?

Do you want to invest your money for a good return on investment? Are you confused between real estate and mutual funds? While shortlisting these two investments, you may have discovered other instruments such as national saving schemes, gold, equities and many more. While all of these investments have their merits and demerits, some factors such as consistency, security, return potential, and performance must be taken into account while making a decision. Below we have made a comparative analysis of real estate and a mutual fund that can help you.

Consistent performer

Real estate is believed to be a long-lasting asset over the years of investment, and it is not a misunderstanding. If we keep a few slowdown periods to one side, property prices have increased throughout Canada. Though many factors such as physical infrastructure, social networks and amenities and many more affect the consistency of a property, it is still less volatile than the mutual fund.

On the other hand, mutual funds enable you to invest in different securities such as bonds, stocks, etc. As mutual funds offer a bucket of options, investor risk is distributed, and they get a good return on investment. Still, high risk is associated with mutual funds, and there are chances of significant losses if the money is not invested smartly.

Return potential

Though real estate experienced challenges during the pandemic time, mutual funds are still riskier than it. In mutual funds, your money will be exposed to the market, where there are more chances of losing money. Despite giving moderate returns on a commercial property for sale in Cloverdale, it is still considered a safe investment. Although mutual funds give a return of 10-12 percent for 10-20 years, several factors can adversely affect the market, such as recession and slowdown in the economy. If you are looking for a long-term investment, consider real estate over mutual funds.

Amount needed

A key difference between real estate and mutual funds is the amount required for investing. You can invest in mutual funds with an amount as low as 100 dollars, but this is not the case with property. Whether you want to invest in residential or commercial property, you should have a significant amount. In mutual funds, the investment can increase or decrease, which is not possible with real estate. One needs to have a large chunk of money to invest in a property.

Risk associated

In terms of liquidity, mutual fund and commercial realtor differ. Property is not volatile like mutual funds, but one fact that makes volatility a challenge in mutual funds is its market exposure and risk quotient. This is not the case with property investment. Even if it takes time to find a buyer for a property and close the deal, your money will still be intact. Also, one needs to spend a fair amount on brokerages.

Monitoring 

Property is a physical asset that requires monitoring and maintenance. In the absence of monitoring, there can be illegal encroachments. Along with this, one also has to spend money on maintaining a property. Although mutual funds are not physical assets, which you need to monitor regularly, you must pick the funds carefully. From a long-term perspective, property investment is still preferred over mutual funds.

Litigation

No one wants their investments to be caught up in litigation. Engaging in arguments for a long time can tire an investor. They may also have to spend their hard-earned money on litigation. All this will reduce their returns and property value. This is not the case with the mutual fund.

Passive income generation

Investment types such as multi-family homes, single-family homes, commercial properties, and office space can provide you with rental income. You can choose between short-term or long-term rental. With a long-term lease, the object is leased for a longer period, such as months or years.

People who want to generate long-term rental income can consider investing in commercial property for sale near surrey. In short-term rental, properties are leased for a short time, such as months, weeks or days. The best investment types that can help you generate short-term rentals are traditional home rentals and vacation rentals.

In the case of mutual funds, one can earn in two different ways- Dividends and Captial gains. Based on the market earnings, funds you have invested in stock will provide you dividends. You can also earn money through capital gains in which when the price of your unit of mutual fund increases, you can sell it and get profits.

Conclusion

You should understand your financial goals before deciding between real estate and mutual funds. Various factors determine the rate of return of these two investments, so you can't compare them. In addition to the above, research these two powerful investment options and combine them with your financial needs. All of these will help you make the best investment decisions. If you want to learn more about the investment opportunities in real estate, stay tuned.

 

Is it advisable to invest in real estate?

Do you know real estate is the top investment option across the world? And why not? It is one of the safest sectors to invest your hard-earned money. Real estate can give you excellent returns, consistent cash flow in the form of rental income, and tax advantages. And it can prove to be a good long-term investment if the property value appreciates over time. But before investing in real estate, make sure you are ready. For example, you need to have a significant amount of money to invest in a property. In addition, real estate properties are expensive and require timely maintenance. Apart from that, a few more things you need to know before investing in real estate are described below.

1. Cash payments

Financial experts like Warren Buffett warns against acquiring investments by borrowing money. So before you buy a land, house or apartment, think carefully. If you do not have cash, you should be able to provide mortgage payments without any rental income. No one can deny that you will make a lot of money from tenants. However, it is possible that you may not have any tenants at all for some time. In that case, you cannot use the rental income to pay the mortgage payments, which will make your asset more of a financial liability than a means of wealth accumulation.

2. Planning of expenses

While purchasing a residential or commercial property for sale near Cloverdale, you need to consider things like utilities, cost of taxes and repairs. Though you can do repairs and rent collection on your own, it will be easier for you to handle a rental property if you hire a rental company. Next is to fix the rent, which can cover expenses such as rental company fees, etc. In addition, you can also save the money that you get from the first few rents to cover the cost of repairing the property.

3. Have a thorough property research

It is critical to study the land deed thoroughly if you are planning to buy a property that you will sell later. While purchasing land, find out whether there is an ongoing construction of new roads surrounding the property and how it will affect the property valve.

Keep in mind while deciding on the property that investments are always risky. It can help you make money as well as lose money. The things that you think can increase the property value may or may not happen, so be prepared.

4. Take small steps

Instead of consulting a commercial realtor to buy land, start by buying a house with a basement apartment or duplex, where you will live in one unit while your tenants will live in the other. It gives you a great opportunity to learn about real estate, but remember that you and your tenants will be living in the same building.

As you become comfortable as a landlord and learn how to handle investment properties, you may consider purchasing a larger property. You will soon become an expert at buying and selling real estate and getting a good return on investment.

Benefits of investing in real estate

Tax deduction

Commercial realtors know that investors can save a notable amount through tax breaks in real estate. In other words, you will be successful in deducting the costs of managing, operating and owning a property.

Build equity

Giving mortgage payments to your lenders means that you will build equity, which is like an asset. You can use this equity to buy more properties, which will ultimately generate wealth.

Inflation hedge

Real estate provides a hedge over inflation as, unlike other investments, it has a negligible correlation with stock and bonds. According to experts, real estate is a hot and competitive market and therefore buying a real estate property is a good bet.

Appreciation

Cash generated through rents tends to increase over time. Moreover, with a good investment, you can earn good profits when you sell it.  `

At last, there are numerous benefits of investing in real estate, but one of the main drawbacks is a lack of liquidity. Real estate transaction takes months to close, unlike stocks and bonds, even if you hire a broker. Still, real estate is a less risky and high-return investment. So, you can invest in real estate without worrying much.

Everything you need to know about Money Laundering in the Real Estate

Money laundering is the process of investing a large amount of money obtained illegally into a legitimate source. Though there are many ways of money laundering, the most attractive is real estate. And why not? It comes with several benefits, such as property can be purchased with cash, ownership can be concealed, and much more.

 

Some commonly used money laundering techniques in real estate are:

 

1. Use of third parties

 

Criminals invest in real estate using a third party or family member (without a criminal record) as the owner. Offenders purchase property on behalf of a third party or deposit funds into their account to complete the purchase. In this way, criminals can not get directly mentioned in the deal.

 

2. Manipulation of property values

 

Criminals work with real estate agents to underestimate or exaggerate a property value.

 

Undervaluation

 

Proposing the contract sales value of property lower than its actual price is undervaluation. The difference between the price is paid secretly between the purchaser and the vendor. Through this, the buyer (criminal) claims that the contract amount was paid by his financial means. Many people use this method to save stamp duty. You can keep yourself safe by buying from the best Commercial Realtor in Surrey from Jas Oberoi Group.

 

Overvaluation

 

Evaluating the price of a property lower than its actual price is called overvaluation. Offenders overvalue property to get larger loans from a bank.

 

Increase rates

 

To confuse the audit trail, criminals can resell the properties in a row for higher values. They generally sell the property to a known third party or a company controlled by them. Criminals do this to show legitimate profits while maintaining total control over the sold property.

 

 

3. Use of loans and mortgages

 

Loans and mortgages provide another way for money laundering. In this, criminals give lump cash repayments to mix illicit funds with legitimate money.

 

 

4. Using rental income

 

Criminals can rent out a property and give funds to tenants to cover the rental payments. In this way- they adjust their money backdoor.

 

They purchase these properties in the name of a third party name and provide rent to the leaser. This way, they disguise their illegal funds.

5. Purchasing property for illegal activities

 

It doesn’t matter from where the offenders buy property- they start doing criminal activities as soon as they enter the property, such as drugs production, etc. The revenue from this illegal activity might be used to purchase additional real estate properties.

 

6. Renovation in the property

 

Offenders can use illegal means to renovate the property, which increases the property value. And then sell it at a higher price.

 

7. Structuring money in the banks

 

Offenders deposit money below the reporting threshold at different banks to avoid triggering transactions. It will help them obtain bank cheques to buy real estate properties.

 

 

Warning signs in a real estate transaction

 

Though all the above money laundering methods are likely to continue in the real estate sector, some warning signs can help you identify money laundering through the property market.

 

1. Someone who is hesitant to share information

 

If the customer/individual does not agree to share information, documents, or data you require is a big red flag. And you should avoid doing business with him.

 

2. Someone who pays only through cash

 

You might have remembered how you paid when you buy, your first property from the best commercial realtor in South Surrey - Read more. Obviously, you didn’t pay through cash. Cash-only payment is a sign of money laundering. You should avoid taking all money through cash for your property.

 

3. Someone offers your large cash lease payments

 

You own a commercial property, and someone pays the lease in huge cash beyond market rates. In this scenario, the person making the rent payments has a large amount of money. It can be a clear sign of a money laundering case. Do not rent out your property to anyone trying to invest money in real estate from criminal activity.

 

Conclusion

 

Before selling/purchasing your property, you should make yourself fully understand the warning signs of money laundering in real estate. It will solve the possible troubles that you will get in the future.