Five Mistakes Brampton Business Owners Make When Buying Commercial Property

Owning the building your business operates from is one of the best wealth-building moves an entrepreneur can make. It's also easy to get wrong. Karan Devgan, Commercial Real Estate Broker with Royal LePage Flower City Realty, shares the five mistakes he sees most often among Brampton buyers.

1. Skipping the zoning check

Buying a building and then finding out your use isn't permitted is a disaster. Zoning, site-specific exceptions and the cost of rezoning or a minor variance need to be understood before you firm up the deal.

2. Underestimating the true cost of ownership

The purchase price is just the start. Land transfer tax, legal fees, building inspections, property taxes, insurance, maintenance and capital repairs all add up. Karan builds a full cost-of-ownership picture so there are no surprises after closing.

3. Waiving conditions to win a deal

In a competitive market it's tempting to remove financing or due-diligence conditions. Sometimes that's the right strategy, but often it isn't. Commercial properties can hide roof, mechanical or environmental problems that cost more than the discount you were chasing.

4. Buying for today instead of the next ten years

Will the building handle more staff, equipment or inventory as you grow? Can part of it be leased out until you need it? Can it be sold easily if your plans change? Good buyers think about the exit before they buy.

5. Going it alone

The seller's agent works for the seller. Having your own commercial broker means having someone who negotiates price, terms and conditions for you, and who knows the market well enough to tell you when to walk away.

Work with a broker who has been in your shoes

Karan is an entrepreneur first. He has bought, built and run businesses in Brampton, so he advises clients like a partner, not a salesperson.

Talk to Karan before you buy. One conversation can save you a costly mistake.