Home          New Ventures Query         Guidelines          Our Offers         FAQ         Contact Us

7-Step Guide To Getting Your Business Premises

A simple guide to getting the most suitable premises for your business.

1. Understand The Real Estate Market

·         The real estate property market usually lags behind general economic trends.

·         As a result, prices can be relatively high even when the economy is facing a downturn. As a buyer, it is important for you to be well-informed about property market trends.

2. Decide On A Type Of Property

             Choosing a suitable type of property will depend on your specific business needs.         

              When deciding on a property, you may want to consider the following:

·         Type Of Business Activity
This affects the choice of property suitable for your business activities. Industrial properties mostly include manufacturing spaces while commercial properties include office and retail spaces.

·         Location
This depends on your need for proximity to your customers, suppliers, central business district, and so on.

·         Relevant Codes And Regulations
This may affect building plans.

·         Budget
This determines the property that you can afford.

·         Buy or Rent
This depends on the way you want to structure your asset portfolio, your budget and most importantly, your business plan and strategy.

·         Terms and conditions relating to purchase/rent

3. Get Professional Advice

·         The easiest way to find out more about a property is to enlist the help of an agent, consultant or developer.

·         They can provide information on available properties in the market, advise you on market prices as well as assist you in the procedures for obtaining a property.

4. Carry Out Due Diligence

·         Before taking any action, you need to carry out due diligence as the real estate market operates under the principle of caveat emptor (i.e. buyers beware)!

·         Some of the things to look out for include:

o        ensure the seller's title is complete and free of mortgages, easements, and so on

o        inspect the land for pollution

o        Check Government development plans for possible redevelopment, road widening, etc.

5. Close The Deal

·         A lawyer will be able to assist you in conveyancing matters such as drawing up the proper terms and conditions, and ensuring proper deed transfer.

·         You may also have to register your deed with the Strata Title Board.

6. Obtain Financing

·         If you are buying a property, you will need to pay in full upon closing the deal.  You have a few financing options:

o        take up a mortgage

o        approach property agents and developers for assistance

o        depending on the nature of your business, you may qualify for Government assistance

·         If you are taking a loan for your property purchase, the maximum loan amount for property purchase is 80% of the property's purchase price or its valuation, whichever is lower.

·         The loan period can be up to 20 years if the remaining lease is 30 years or more. 

·         Sometimes, a combination of term loan and overdraft facilities is offered to suit the company's needs.

·         Alternatively, consider renting your business premises - this requires considerably lower capital investment

7. Move In!