30 Oct, 2014
Now is an opportune time to invest in a commercial property, with many people understandably interested in taking advantage of low interest rates and the weak Australian dollar.
But when making a decision to invest in a commercial property, you may find it hard to choose whether to buy or to build. To determine which option is right for you, you must first have a clear and accurate plan of what exactly it is that you want from the property.
Whether you are a business owner who needs a fit for purpose building, or a property developer looking for a sound investment, it is imperative to research and understand your options.
By looking closely at the positives and negatives of building a commercial property versus buying, you can make an informed and confident decision around which option is right for you.
What do you need?
What is it that you need- do you have specific requirements? If you are flexible in terms of you want from your commercial property, then choosing an established build may be an option.
Buying an established building however has a very significant drawback, as you will most likely have to compromise your requirements to adapt to what is available on the property market.
Building has a notable advantage, as you can design and customise your build to exactly suit your specific requirements.
For business owners who are planning to use the property as their commercial premises, this can be a long term investment for their business. Opting to build means an efficient and built for purpose property which will suit the business’ needs and encourage productivity.
Cost and timing
When considering a commercial property, cost and timing are two important factors which will influence whether to build or to buy.
Buying an existing commercial property comes with a variety of additional expenses such as appraisal costs, legal fees, surveying costs and fit-out fees to make the building ready to move in to.
Building a commercial property allows for far greater flexibility and means that you can avoid costly renovations and improvements which may be necessary to convert an established building to something more align with what you want.
In terms of planning and effort, buying established may appear to be the quicker and easier option.
There are many stages to a new build, however if you choose the correct builder, they can project manage and coordinate the building process to ensure it runs efficiently and within budget.
Many people fear construction delays and the spiralling costs associated with an increased waiting time for construction completion.
However a build does not have to be a lengthy and costly process. A reputable builder can work with you, to design a building which meets your budget requirements in a time-frame that will suit your needs.
The budget and time-frame can also be agreed upon from the project outset, so that the risk of project blow out is eliminated. An efficient builder will deliver a building that is on time and on budget.
Quality
Established builds may present a problem in terms of quality, as older properties can often require renovations and have often succumbed to wear and tear. The general upkeep can also be significantly higher than in new builds.
New commercial properties are often built to a higher standard using better materials, and are also more energy efficient.
When weighing up the benefits and negatives of building versus buying, the odds are in favour of building a commercial property. Why choose to compromise what you want from your build? By opting to build a commercial property to your specifications with a reputable construction team, you are in control of your investment.
RapidTilt are involved in every stage of the construction process. We work with our clients throughout every stage of the construction process from concept development, architectural and engineering planning, and council approval through to the finalised construction.
We are skilled project managers with an assembled team of craftsmen dedicated to producing builds of the highest quality, that are both on time and on budget.
