วันจันทร์ที่ 21 ธันวาคม พ.ศ. 2552

Commercial Real Estate - If you are a home or property?

The owners of the establishments to check often, whether it employs to build their businesses, or should have for rent. Common sense says that the contractor must acquire their structures and "pay" the rent and then build long-term capital. So this big decision, but are rarely so simple and have both objective and subjective factors that cloud the issue further.

For example, objective factors include financial constraints (I've really had enough money?) Tax breaks(Do I really have enough money to tax havens?) The potential for long-term capital created to qualify (Is My local real estate market rises or falls) or space for their growth (I need to go to a larger building in the short term?). Subjective factors include the company's image, control, or pride of ownership, etc., has powers beyond the control of the owner of the company, as the global economy, interest rates and the appreciation potential for the future (or detriment) the complexityQuestion.

For many businesses owners, the main question is really in A. I have needed to submit by 10-20% and as my business really afford to tie money in real estate? Commercial real estate is illiquid. And once there cash, there are only 2 ways to get out. 1. Getting a new loan 2nd Sale of the property. If you buy a property means that your company will be cash poor, you should be your plans for the purchase or put on waiting to find a lower priceProperty or scrap it altogether.

The payments the borrower to obtain more financing at a fixed rate to 90%. In fact, it is still common practice to obtain loans of up to 90% of the cost of financing. Meaning if you're thinking of buying a property for $ 1,000,000 $ 300,000 and had in improvements / build outs. The possibility of 90% from $ 1,300,000 to finance only $ 130,000 out of his pocket to.

In addition, many entrepreneurs are curious to know whether it would be a money economytheir monthly payments from the owner. The answer to deposit and current interest rates in general this question. Although obvious, the more the borrower is the payback period and the rate - the higher the monthly payment. But now it is common to see the prices of 6% s' to save a little money if the loan is 90% per year for 25 or repayment plan.

Another aspect, in addition to the plans for the growth in prices. When the company at the originCycles, and expects to grow faster than the entrepreneur should have an idea what to do when they leave the building - rent, sell or hold part of their activities in it. These are simple questions with complex answers.

For example, if the plan is to rent the property and move into a larger, not how long will it take to actually It Out Who knows really, Let? It is not unusual to take 6 -12 months to rent a commercial property. How sadIf the owner? Can you afford it?

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