Over the last few years, lower interest rates have come along, making it more affordable than ever to buy real estate for your own business instead of renting. When most people stop and give it some thought – buying real estate for your business use makes a lot more sense than renting.
In order to buy real estate for your own business in Ohio, you’ll need to start building up reserves and have enough for the closing costs and down payment. Your down payment will normally need to be around 10-15% of the price or the value of the property (SBA loan). To be on the safe side, you should always try to have 20% to put down.
In most cases, the closing costs will run you around 5% of the property price. Before you purchase real estate for your own business, you should always get an estimate to get the space customized for your business needs. An estimate won’t be the exact price, although it will be really close. You should always plan to save up a bit more money than you need, just to be on the safe side. It’s always best to have more than enough than not enough.
You’ll know you’re ready to buy real estate for your own business when you know exactly how much you can afford, and you’re willing to stick with your plan. When you buy your own real estate for your own business and get your monthly mortgage payment, it shouldn’t be any more than the rent you are paying. Although there are lenders out there who will say that you can afford to pay more, you should never let them talk you into doing so – but stick to your budget instead.
Keep in mind that there is always more money involved with your own real estate for your own business other than the mortgage payments. You also have to pay for utilities, property insurance, property taxes, and maintenance. Owning and caring for your own commercial space requires a lot of responsibility. If you’ve never owned a commercial space before, it can take a bit of time to get used to it.
This applies to any property that gets used for business needs.