Buying a commercial property
A commercial pre-purchase inspection is a building and timber pest inspection on a commercial property. Commercial properties can have many of the same issues as a residential property, so it is just as important to have a pre-purchase building and pest inspection on your commercial property. In addition to this, a pre-purchase inspection is part of your purchase contract.
Dedant Building and Pest Inspections has conducted thousands of commercial pre-purchase building inspections on all types of commercial properties from small offices to large warehouses.
What is included in a commercial pre-purchase inspection?
A commercial building inspection identifies safety issues, major and minor defects and maintenance issues. A building inspection is undertaken by a qualified building inspector. The inspector will identify any visible issues so that the buyer is able to make an informed buying decision based on the condition of the property. Defects are classified in the following areas
- Safety hazards, these require immediate repairs to make the building safe.
- Major defects, these defects affect the use the property and should be attended to as soon as practically possible.
- Minor defects, these are generally cosmetic or maintenance issues and can be attended to as part of regular maintenance
In addition, a timber pest inspection is conducted. The inspector is a licensed pest technician with QLD Health. The inspector will identify any visible signs of termite activity, past damage or conducive conditions for termites.
Difference between commercial and residential property
Commercial property and residential property are two very different types of investments.
Residential property is used as housing. It includes single family homes, townhouses, and apartments. Investors rent residential property out for tenants to live in.
Meanwhile, commercial property is used for business purposes.
Type of commercial properties
Commercial properties are used to undertake business activities. There are many different types of commercial properties and these can include –
- Offices
- Medical Suites
- Shop / retail outlets
- Shopping centres
- Factory / Industrial / Warehouse
- Hospitals
- Leisure facilities
Benefits of investing in commercial property over residential
Commercial property has many benefits.
They generally offer higher returns, have longer lease periods, fewer ongoing expenses, greater price stability and plenty of tax benefits.
However, it also comes with several risks.
Firstly, commercial properties are very sensitive to economic conditions.
During times of economic recession, as we see now, the demand for commercial property falls much faster than for residential properties.
While commercial leases can last for years at a time, there are often long vacancies between tenants.
The cost of maintaining a commercial property in relatively high. Even when your property is vacant, you must still bare the cost of maintaining it.
What is a commercial building and pest inspection?
A commercial building and pest inspection is a comprehensive examination of your commercial property by a qualified inspector.
Commercial property is non-residential real estate which is intended to generate profit for you.
Why a Building and Pest Inspection for my commercial property?
Unaddressed issues like structural cracking, leaks, rust, dampness and timber pest issues can make your commercial property unappealing to tenants.
By getting a Commercial Building and Pest Inspection, you will be made aware of any faults that exist in the property and you can address them.
As such, you will know exactly what renovations you need to undertake prior to your property being leased out, to make sure you have the best chance to attract tenants.
When should I get a commercial building inspection?
There are generally two key times you should get a commercial building inspection.
Before you buy it
When you inspect a property before buying, this is known as a pre-purchase inspection.
Getting a pre-purchase inspection is vitally important if you are buying a property to lease out.
This is because the previous owner was likely trying to keep costs down. This means repairs may have been put off or hastily covered up with an insufficient patch job.
The last thing you need is for your new tenant to complain about a building defect that interrupts their business or threatens the safety of their employees. If they are unsatisfied, they may not renew the lease or may move somewhere else.
Commercial building and pest inspection
Before you sell it
Inversely, if you are selling your commercial property, you may seek a pre-sale building inspection.
A pre-sale inspection will tell you exactly what is wrong with your property before it goes on the market.
This means you will not face any surprises if a prospective buyer organizes their own pre-purchase inspection. As such, you will likely have a much easier time negotiating the purchase price.
Alternately, you may wish to provide prospective buyers with a pre-sale report, so they do not feel the need to conduct a pre-purchase building inspection.
Contact us
Don’t delay. Contact Dedant Building and Pest Inspections today on 07 3807 0122
Comments
Post a Comment