Assess the Situation before Buying a Shop

The crisis left empty shops even on high streets in the big cities. However, apart from the lower income of the traders it also provides good opportunities that have to be used as best as possible. The period is suitable both for buying a shop – because it is a good investment in the big city – and for renting a new shop - bigger and with better location.

Here are the tips of BULGARIAN PROPERTIES for buying and renting a shop:

• Do you really need a new shop? Buy or rent only if you really need a new shop and only if you can afford it. If you are planning to move shop by renting a better one assess carefully whether you have clients at your present location who accumulate most of your income who might not follow you to your new location. If you are planning to expand your activities draw up a strategy and carefully assess your potential for managing additional activities and the increased costs related to their launching.

• Know your potential. Prices of shops both for sale and rent have decreased and it is quite possible for you to feel that with the budget you have you could afford a bigger shop or a shop on a high street. However, do not overestimate your abilities but assess them well. Do not forget that owning such a property means considerable constant expenses for maintenance and taxes.

• Trading areas offer the biggest return on investment. Due to financial difficulties or for other reasons more and more owners of shops who rent them out decide to sell them. At present there are bargain offers for trade areas on the market which are offered with a signed rental contract and a long-term tenant which guarantees a good income. With shops one could get up to 9-10% of annual return on investment despite the relatively low rental prices.

• Buy and rent quality shops and shops with excellent location. At a time of crisis it is the price of properties of the lowest quality and of those with bad location that fall the fastest and the most. Go for a shop with a smaller area but located on a busy boulevard, close to public transport stops or in a pedestrian zone. When renting bargain for the best price and sign a long-term contract, but before that carefully plan your activity and you financial situation.

• Bargain the best possible price. In the process of bargaining you might get a price up to 30% lower than the offer price. Trust the advice of your real estate agent on how you should act and what you can get by bargaining with sellers/lessors. The discount should not be an ultimate goal as now more and more attractive offers come to the market. In order to be informed about the prices and the market trends read the analyses of the big agencies and experts in the field.

• If you are yet to start your business then choose renting over buying a shop. Rental prices fell by 25-30% since the beginning of the crisis, the supply is big and you can strike a bargain deal. That is the reason why many traders look to rent better shops and new traders open shops taking advantage of the crisis to position themselves on the market.

Luxury shops at a time of crisis
Despite the crisis there are no sale offers yet in the busiest locations. And if one finds such an offer the price is extremely high and the return rate – very low as rental prices have decreased even in top locations like Vitosha Boulevard in central Sofia. If you are looking to rent a shop on one of the high streets now is the time to look through the offers as you can bargain quite a good price.

In contrast to previous years when there was a very limited possibility to rent a shop on Vitosha Boulevard now there are quite a few vacant shops there. This is also valid for all main trading streets in the big cities around the country.

Compromises
There is no such thing as a perfect property and that goes for shops as well. There is always something you have to put up with. However, never compromise with the location, the functionality and the price. A shop with a perfect location and parameters is never too expensive. This is the concept of one of the big chains of stores selling clothes. If you find the shop that suits your needs perfectly and you can afford it do not aim at receiving a discount at any cost. It will give you a great chance to develop you business and make a good profit.

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