By Indhira Desangles
Buying or renting a property is one of the most significant and financially impactful transactions a company can make. Even if a company might relocate in the future, the capital required to acquire real estate, along with the associated expenses, makes constant changes of location impractical.
And if we add to that the fact that when companies or investors decide to take the plunge and become owners, the question of whether that decision is right becomes especially important. Therefore, I want to offer some tips that might help you avoid these common mistakes made by some buyers:
- Dismissing a property for not meeting all the requirements they want (space, specific layout, area, price, payment plan) without first analyzing possible solutions.
- Selecting a bad location and/or poor quality property for a low price.
- Do not buy a property unless it is at a bargain price or with a payment plan that is below normal.
- Judging properties by square meters and not by the property's layout and amenities.
- Calculate the property price per square meter only, without taking into account important factors that influence the price such as: market, location, type of property, builder, design and finishes.
- To stop buying a property because of the opinion of family and friends who don't really know the market.
- Wanting to pay for the entire property in cash when you can finance it and not deplete your capital, or use that extra money to invest in real estate.
- Do not pre-qualify and know how much you have for monthly payments (financing or down payment) before starting the search.
- Not calculating fixed and variable costs, such as tax payments associated with the transaction, legal and accounting expenses, remodeling and adaptation, furniture, maintenance, among others.
Take your time with the process, constantly review and study the market with the help of a corporate real estate professional. This is crucial: having a specialist as an ally who will ensure your interests are protected, who will be involved in the search, and whose first action will be to listen to you as the buyer and understand the need behind that initial contact. Above all, they should be dedicated to organizing the buying process strategically, providing the necessary tools and eliminating improvisation.
