4 Extra costs you might have to bear for buying a Commercial Property in Ahmedabad
When you look at a Commercial Property in Ahmedabad, you will be thinking about only a few things – the location, the property’s quality, the developer and the probable returns.
What most of us usually forget, is that there are ton of transaction and other costs, when it comes to investing in Commercial Property in Ahmedabad.
When you buy a new car, you end up paying for the petrol, the accessories and insurance before you start using it. There are similar costs attached to your commercial property, before you are able to use the property for its intended purposes.
This list will help you account for the 4 most prominent costs you might have to bear for buying a Commercial Property in Ahmedabad
1. Brokerage.
If you have taken the services of a broker, you will end up paying brokerage. Most brokers that cater to the retail segment of Commercial Property in Ahmedabad, tend to have fixed percentage of fee structure.
They would either charge you 2% of the entire transaction value or ask for upfront payment of a certain amount, before you can avail their services. If you have an established relationship with the broker, you might be able to negotiate the brokerage.
2. Renovation Charges.
The seasoned investors in Commercial Property in Ahmedabad know for a fact – renovating and selling a property is more profitable than buying and holding a new property.
When you buy a new property, you are paying a good amount of margin to the developer. Sometimes, you might also end up paying a lot for the premium of the locality.
Renovation costs on the other hand would include the expenses you incur to make the property’s value go up. These might include plumbing, repainting, redecorating or even reconstructing the property.
3. Compliance and Legal Fees.
There are a few expenses you might have to incur to get the sale deed made and for getting the necessary licenses, if you are planning to set up a business in your soon to be Commercial Property in Ahmedabad.
Beyond this, if you don’t conduct the necessary due diligence on the ownership of the property, you may end up paying huge fees in the future for defending the ownership. Several property cases tend to go for years, where you might have to pay the fees of the lawyers plus calculate the cost of the sunk cost you have incurred to buy the property. So, make sure you are entering into a legal deal with the rightful owner of the property who is authorised to sell it.
Having the right broker in place will attract some brokerage costs you might have to bear. But it will also ensure that you get immunity from several other potential expenses you have not yet considered.
What most of us usually forget, is that there are ton of transaction and other costs, when it comes to investing in Commercial Property in Ahmedabad.
When you buy a new car, you end up paying for the petrol, the accessories and insurance before you start using it. There are similar costs attached to your commercial property, before you are able to use the property for its intended purposes.
This list will help you account for the 4 most prominent costs you might have to bear for buying a Commercial Property in Ahmedabad
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| Commercial Property in Ahmedabad | Iconic Shyamal |
1. Brokerage.
If you have taken the services of a broker, you will end up paying brokerage. Most brokers that cater to the retail segment of Commercial Property in Ahmedabad, tend to have fixed percentage of fee structure.
They would either charge you 2% of the entire transaction value or ask for upfront payment of a certain amount, before you can avail their services. If you have an established relationship with the broker, you might be able to negotiate the brokerage.
2. Renovation Charges.
The seasoned investors in Commercial Property in Ahmedabad know for a fact – renovating and selling a property is more profitable than buying and holding a new property.
When you buy a new property, you are paying a good amount of margin to the developer. Sometimes, you might also end up paying a lot for the premium of the locality.
Renovation costs on the other hand would include the expenses you incur to make the property’s value go up. These might include plumbing, repainting, redecorating or even reconstructing the property.
3. Compliance and Legal Fees.
There are a few expenses you might have to incur to get the sale deed made and for getting the necessary licenses, if you are planning to set up a business in your soon to be Commercial Property in Ahmedabad.
Beyond this, if you don’t conduct the necessary due diligence on the ownership of the property, you may end up paying huge fees in the future for defending the ownership. Several property cases tend to go for years, where you might have to pay the fees of the lawyers plus calculate the cost of the sunk cost you have incurred to buy the property. So, make sure you are entering into a legal deal with the rightful owner of the property who is authorised to sell it.
Having the right broker in place will attract some brokerage costs you might have to bear. But it will also ensure that you get immunity from several other potential expenses you have not yet considered.
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