Your Guide To Purchasing Commercial Property In South Africa
There are a number of advantages to purchasing a commercial property as opposed to renting premises. Before making the decision to purchase consider which option is best for your business and which is more affordable in the long run.
Buying commercial property is a big decision and represents significant capital outlay, however it can produce profitable returns on investment.
Advantages of buying commercial property
Being in a position to buy commercial property offers a number of opportunities to expand and grow your asset and equity base. Like with most important financial decisions it is important not to act impulsively and make a considered decision that is motivated by sound business objectives. Consultation with your financial advisor and your attorney will help you make the best decision for your business.
Expanding the company or business equity
Owning commercial property means that you are adding to your asset portfolio. Each bond repayment can be considered as an investment in the business rather than the expense of paying rent.
If you buy property at the right time and in the right location and invest in further developing the property, its value will increase over the years. Owning the property also means that as the owner you have the right to renovate and remodel at your discretion.
From a legal perspective, you are also free to lease out unused space, which can help with maintenance costs and loan repayments.
Consult with an attorney who specialises in commercial law
The commercial property market is complicated. Protect your rights and consult with a reputable attorney that understands the nuances of South African property law. Your appointed commercial lawyer will act in your best interest and assist in negotiating a favourable deal, draft the sales contract and register the transfer of ownership at the Deeds Office.