Hey there Property Chatters I'm looking at potentially making an offer on a retail suite, which is located on a main road and suitable to be converted into an office suite, which is why I'm looking to make an offer to move the business to. My question, as I've never purchased commercial property before....the residential property market is obvious active and people are stepping on top of each other to secure a site, how is the commercial arena? I want to secure the site, their asking for offers over $900k, would it be wise to make an offer below the asking offer? Property has just come onto the property market. Thank you in advance for your input.
Just because they're asking doesn't mean that's what they want. You have to consider the property as an investment based on its return - what are similar properties getting in nett rent/m2? How big is this one? What is the range of cap rates for this type of property? Is GST going to be applicable?
