Important aspects before transforming a commercial premises into housing
Although it can sometimes be a challenge, there are certain benefits when a commercial premises is transformed into a home. For this reason, the following three aspects must be taken into account:
1-Beware of additional costs
Before you commit to buying a commercial property, evaluate all financing options and the level of renovation the local will be involved in. The advice of an official property accountant who is specialized in the real estate market and knows how this type of project works may also be important.
Calculating the cost of this conversion can be somewhat complicated since some aspects must be taken into account beforehand. It is important that you understand from the beginning what your project needs and that you comply with the necessary regulations. The vast majority of problems that arise in a change from commercial premises to housing come from not taking into account unexpected problems, such as a problem with the structure of the building.
2-Location is important aspect to consider
If you have in mind to create a family home, can you easily access the center and the services that the city offers? Or, is parking easy to find? Among other things.
Shoppers often want convenience, so the distance and time spent to the nearest shopping area will always be a significant factor in the decision. Make an immediate study of the surroundings of the property: How far is the nearest store and supermarket? How far is the public transport stop from the house?
On the other hand, it must be borne in mind if the house is located in or near an industrial estate, pollution and noise, since these factors can seriously affect the value of the project to be developed and who is going to invest. There may also be other types of limitations, however, the local authority can advise you on what you must do to have everything in order.
3-Know the market
Having a vision of current market trends is essential to ensure that your project produces the desired project. Having at least two different strategies, although three would be better, is very basic before starting the project.
Do you plan to sell the property once it is finished or will you have it as a rental property for a longer term capital growth? In both cases, choosing the right price is as important as the conversion itself.
Knowing your market allows you to even approach specialized lenders to obtain funds. However, if you can’t show how you will repay your loan, you simply won’t have a chance with them. They want to know how much money you need, how long and when you will return the money, with the respective interests. They will also need to calculate numbers to see if the project is viable or not. Research and establish a good plan before buying a place that you are going to convert into a home.
Do you want to start this new project?
If you are looking for a place, we will help you find it. For more information, visit our website or contact us through our e-mail inmobiliaria@hormicasa.es
