Tips for Buying a Commercial Real Estate

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<h1>Tips for Buying a Commercial Real Estate</h1><strong> Author: <a href='http://www.articleseen.com/profile_Articleseen Editorial Team.aspx'>Articleseen Editorial Team</a></strong><br /><p>A commercial Real Estate is a real estate or a place—a building, a one room office, a locality, whatever—which is used for commercial purposes, such as setting up an office, a factory, etc. But the first and foremost thing is to find such a place and get its possession. So how to buy the perfect commercial estate? We give you some tips in this article so that you get some basic idea about buying commercial Real Estate. Different commercial organizations have different needs and visions. Likewise, it has been noticed that they differ in their opinion on whether to buy a place for commercial purposes or to take it on lease. While some are keen to buy the place, some prefer to lease the space. The most probable reason behind taking the place on lease is the indecision about whether the business for which the place is taken will ultimately run successfully or whether it has to be closed down after sometime, depending on the profit that it’s making since the main aim behind every business is to make profit. The point to be noted here is that buying a commercial real estate or taking it on lease, both has its positive as well as negative sides and both has to be considered before coming to any decision. The most important point to consider while deciding on buying or leasing is the cost, and the cash or the credit you have in hand. If you decide to buy a commercial real estate, a minimum of 10% to 25% of the total sum has to be paid as down payment depending on how much credit you have managed to access. But in case you are taking the same place on a lease, your initial cost comes down to 10% to 15% of the cash which you need for your own payment if you were to buy it. Another important factor to consider while deciding on whether to buy or to take a commercial real estate on lease is to decide on the opportunity cost. This is to decide whether you would better profit from getting your own place for your commercial purpose, or whether you would prefer to save that extra money by taking the place on lease, thereby investing that saved amount in your business and get better return. The other factors that need to be considered while deciding on buying versus leasing a commercial real estate are the fixed costs and variable costs ratio, growth opportunities, appreciation, management of the property, rate of taxes, and last but the most important, the analysis of cash flow from your business. It is very necessary to understand all the factors therefore which are very much essential before going for the purchase of commercial Real Estate. Until and unless these factors are considered, business can never be profit-making.</p><strong>About the Author:</strong><br />This article is an exclusive work of the Editorial team of <a rel="nofollow" href=http://www.articleseen.com>ArticleSeen.com</a>. Feel free to republish this free article elsewhere, provided a link back to this source. To announce the updates in your site by distributing press releases, visit <a rel="nofollow" href=http://www.prbd.net>PRBD.net</a> and get more coverage by using the SEO services of <a rel="nofollow" href=http://www.submitinme.com>Submitinme.com</a><p> Article Source: <a href='http://www.articleseen.com/Article_Tips-for-Buying-a-Commercial-Real-Estate_8941.aspx'> http://www.articleseen.com/Article_Tips for Buying a Commercial Real Estate_8941.aspx</a></p>

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Category : Finance : Real Estate