Buying Commercial Property for Personal Use

Residential real estate is a process most people are familiar with, but buying a commercial property may be a new endeavor. Therefore, it’s important to note the differences between these two processes before buying your commercial space. For example, rather than lending being based on the buyer’s credit, those looking to secure lending for commercial property will need to show the income and expenses of the business that will occupy the space. The commercial loan process may add challenges for first-time buyers. 

If you’re considering buying commercial property for personal use, it’s beneficial to use an experienced broker specializing in commercial real estate. They understand the local area and can help you navigate the process of finding the right location for your business.

Is It Hard to Buy Commercial Property? 

Navigating the process of buying a property can certainly be confusing if it’s your first time. You may want to consider hiring a lawyer and accountant to review contracts and advise you on financial decisions. Do your research, and always hire a real estate professional with local knowledge. They have the expertise to help you make the right choice for your individual business goals.

How Much Money Do You Need to Buy A Commercial Property?

Purchasing a commercial property typically requires a 20-25% down payment. There are a variety of real estate loans available for commercial properties. They each have different terms, so it’s crucial to work with a commercial mortgage banker to determine which one meets your needs. 

Is It Better to Buy or Lease Commercial Property in Melbourne, FL? 

As a business owner, you may be considering leasing a space rather than buying one. However, buying and leasing commercial property both have their benefits and drawbacks. 

The benefits of buying your own office include:

• Equity. Your ownership stake in the property would grow as you pay down the loan principal and interest. 
• Tax breaks. Your depreciation is considered tax-deductible. 
• Rental potential. As the owner of a property, you can develop a passive income stream.

The benefits of leasing include: 

• Lower upfront costs.
• Sharing the maintenance costs with a landlord. 
• Affordability in competitive real estate markets. Rental payments make it easier to get your foot in the door of a hot real estate market.
• Tax breaks. You can deduct the entire monthly lease payment as well as ongoing costs such as utilities.

Whether you’re ready to buy a commercial property now, or you need to establish your business so you will have the backing of lenders when the right property is available to purchase, the Ullian Realty team is here for you.  

Check out our listings page for more information about properties throughout Central Florida for lease and purchase. As experts in Brevard County commercial properties, Ullian Realty is committed to helping you find the right property for your business needs. Contact us today to schedule a meeting.