Investing in property always gives considerable financial gains in the form of either renting the property or selling the property in the future on a higher price than when the property was bought. Investors usually consider a lot of factors while buying a particular property, some of the main factors include the location, current and future value of the property. The investor also looks if the property would be ideal for either residential or commercial use. Regarding return on investment, the commercial properties give very lucrative annual returns which are more than residential properties. If a person does not have enough money to invest in commercial property, he/she can always contact banks and investment companies in hopes of getting a loan amount.
A person can apply for a mortgage after considering his monthly income and household expenses. The banks and other private lending firms have stringent rules which a person must comply with, some of the factors that banks analyze are
- Amount of loan asked by the borrower
- The loan repayment duration, whether it is 3, 5 or 10-year loan term
- The percentage of interest amount
Interest rate is one of the key deciding factor, and interest rate is applied on the principal amount deposited and the monthly repayments. The total loan amount may vary due to changes in the interest, the loan term and financial or credit history of the person. The interest a person pays for Buying and selling commercial property in Fairfax Virginia can be deducted from his/her tax payment. The procedure of asking for a loan from a bank involves a person submitting his documents along with financial history which can ensure if a person can repay his loan within the given duration.
Apart from the financial aspects of buying and selling commercial property, there are other considerations such as
- Making the right decision to buy particular property as in some commercial properties the plant and equipment are depreciated whereas some commercial properties have higher returns due to monthly rentals
- Consider the history of the property and its market value over the years; this will give you an idea at what price you can sell the property in the future.
- Make a report payment history and find if any arrears are left out by previous tenants. Do some negotiation with the owner to either settle the outstanding debt or include it in the purchase price.
- Know about any other running maintenance cost that the previous owner opted for and is still functioning
- Be mindful of the potential risk which may arise due to decline of property prices
The following people must be employed whether buying and selling commercial property in Fairfax Virginia
- A lawyer: He will oversee the entire agreement and check the legal aspects of the purchase or sale of commercial property.
- Mortgage broker: He will help a person with the financing of loan from banks, credit unions, and lending firms
- Commercial broker: He will be assigned to identify and search for commercial properties which are available and within the financial budget