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.