Selangor commercial properties are very popular with locals and people looking to start a business in the area. There are many places for entertainment and of cultural value like Empire Subang (see here), Sunway Giza, Setia Alam and Setia Walk. Many plans are being made to update commercial properties in Selangor but it’s good to bear these tips in mind when buying or renting commercial property.
Get Insider Scoop
When buying or leasing property, the best thing to know is what the insiders know. Commercial property is bought differently than residential property. When commercial property is bought, there is a stake in return on the investment, so the figures are calculated in accordance with projected sales.
Research the Property
Square footage on a commercial property is important when for this reason. The larger the housing, the more return. Also it would be good to know what the rent goes for, if there are any renters already on the property, if so, how many units are being rented out and so forth. The lease agreement for an apartment or condo located on a commercial property is longer too, for monetary reasons. Residential property is based on the value of the property as it is.
Before a property goes into negotiations, the buyer is prequalified as to ability to pay and credit worthiness. Once that is established, the talks begin. The first thing an investor will need is a down payment. The bank requires a minimum which will be discussed once all other criteria is met. If one is seeking a loan in order to make the purchase or investment, then the loan terms and rates should be discussed.
Balance Your Payments
Sometimes it is possible make a purchase at lower interest in the beginning of the process while the interest goes up toward final payments. This may not be the best idea because no one can foresee the future and the monies available at the outset might not be available later on. This can easily cause a default on the loan. A better option is probably to pay straight across the board. That way headway is being made in the payments so the final payments will not have increased.