Things to Consider When Buying Commercial Real Estate in Hamilton, Ontario
There’s a lot that goes into buying commercial real estate in Hamilton, Ontario. From checking the title of a property to reviewing a purchase agreement and closing a mortgage, every step is important.
If you’re getting ready to make your first commercial purchase, it helps to cover the basics. The following are essential points that should never be ignored when you’re exploring the market.
Has your Lawyer Read the Purchase Agreement?
Although this is one of the last steps when buying commercial real estate, have your lawyer read the purchase agreement, as it’s one of the most important things to do! No matter what stage of the process you are at, always keep in mind that you will need to have a lawyer check the purchase agreement before you commit to a property.
Sale agreements are written by lawyers and understanding the jargon and technicalities can be difficult. Hire an experienced property lawyer to review an agreement before you close.
Check the Property Records
Property records, including a full title search, will protect you from illegal sales where the property is encumbered with liens, mortgages, or other property issues. An unclean title could prevent you from taking full possession of a property, which would leave you out of pocket and behind in your search for the perfect commercial real estate in Hamilton, Ontario.
Title and land registration documents are available from Ontario land registry offices. However, finding this information can be cumbersome if you don’t have experience navigating the red tape. This is one area where the value of a professional mortgage broker becomes apparent.
Research any Maintenance Needs
Maintenance needs on an existing building could diminish the value in your investment. Have a complete structural inspection performed and check maintenance records/requirements before you invest in commercial real estate in Hamilton, ON.
Are the electrical systems in good order and ready for increased future demands? What is the condition of the plumbing? Will major renovations be needed before the property can be used or rented to a third party?
Understanding the maintenance needs will allow you to keep the value of the property in perspective.
Check any Zoning and Environmental Issues
You may have found a property that looks perfect for your business needs. You’ll also need to check that the property is zoned for the type of business you want to conduct. In some cases, you may also need an environmental impact report to ensure that you can legally operate.
Whether you are investing to operate a business as a first-party, or if you will manage and rent the property, zoning and environmental checks are essential. Failing to complete the necessary checks could result in a bad investment that doesn’t provide the return and utility that you expected.
Contact a Broker Before Buying Commercial Real Estate in Hamilton, ON
With so much to do when researching and buying commercial real estate, it helps to have representation on your side. Commercial mortgages should be purchased through a broker. There are several benefits compared to completing the process alone.
- A broker will have access to a professional support network for title checks, inspections, environmental impact reports etc.
- You’ll work with a single lending professional rather than taking weeks to explore the mortgage market through individual lenders.
- A broker can find the most cost-effective rates with terms that work for you.
Buying commercial real estate in Hamilton, Ontario can be time-consuming and stressful. A broker alleviates these problems while providing ongoing support throughout the application and pre-approval process.
Follow these simple tips and eliminate stress as you make your next investment.
To book an appointment to discuss your needs and learn more about how Mortgage Capital Investment can help you, call 416-877-7438 or