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Acquisition of Commercial Property
The acquisition of commercial property is a significant investment. It's even more important to be well-prepared and to avoid common pitfalls. This article provides you with a comprehensive overview of all relevant aspects, from the initial assessment to successful completion. Do you need individual advice? Get in touch with us here.
The correct selection of a commercial property is crucial to avoid costly mistakes. Pay attention to the purpose of use, the buildability, and the valuation.
A professional valuation is essential to accurately determine the market value. Consider all relevant factors such as location, buildability and environmental issues.
A thorough Due Diligence minimises risks. Check the land register excerpt, development plan and soil report to avoid unexpected surprises and increase the return by up to 1%.
Definition und Abgrenzung: Was ist ein Gewerbegrundstück?
Ein commercial property differs significantly from a residential property. The main difference lies in the intended use: while residential properties are primarily for living, commercial properties are intended for commercial or industrial activities. This also affects the buildability, as commercial properties are often subject to specific conditions and restrictions tailored to the type of business. The valuation also differs, as factors such as potential returns and suitability for certain business models play a greater role in commercial properties. Choosing correctly is crucial to avoid costly mistakes in the acquisition of commercial property.
Types of Commercial Properties
There are different types of commercial properties that vary in their development status and usability. Building land is immediately buildable and intended for the construction of commercial buildings. Development land is not yet designated as building land, but it is expected to become building land in the future. Here, a direct inquiry with the local authorities is advisable, as recommended on bodenrichtwerte-deutschland.de. Raw land is intended for building but still requires development measures. Brownfield land is undeveloped or derelict land that can potentially be developed for commercial use. Choosing the right type of land strongly depends on your specific needs and plans.
Importance of Location and Infrastructure
The location of a commercial property is a decisive factor for the success of your business. The macro location refers to the regional environment, while the micro location concerns the immediate neighborhood. Good access to transport routes and public transport is essential to ensure accessibility for customers and staff. The existing infrastructure (electricity, water, sewage) also plays an important role. Inadequate infrastructure can lead to significant additional costs. Make sure that all necessary connections are available and adequately sized. The importance of location is also highlighted on immoverkauf24.de.
The Standard Ground Value as a Starting Point
The standard ground value serves as an initial reference point for pricing a commercial plot. It is determined by the appraisal committees of the respective municipalities and indicates the average value per square metre for a specific location. However, it is important to note that the standard ground value is merely a guideline. Actual market values can vary significantly, as Standard Ground Values Germany also emphasises. Deviations of up to 20% are not uncommon, as individual property characteristics and the current market situation play a major role.
Professional Valuation: Appraiser and Methods
For an accurate valuation, commissioning a qualified appraiser is essential. An appraiser considers all relevant factors and prepares a legally binding report in accordance with § 194 BauGB. This report is important not only for pricing but also for legal and tax purposes. There are various valuation methods that are applied depending on the type of property. The comparison method is often used for undeveloped land, whereas the cost method and the income method are used for developed plots. Choosing the right method is crucial for a realistic valuation. The importance of a qualified appraiser is also highlighted at Heid Real Estate Valuation.
Factors Affecting Property Value
In addition to location, there are numerous other factors that influence the value of a commercial property. Buildability is a key factor: What type of buildings are permitted? What restrictions are there? The layout and size of the property also play a role. An unfavourable layout or an impractical size can limit usability. The degree of development is also important: Are all necessary connections (electricity, water, sewage) present? Contaminated sites and soil conditions can significantly reduce the value, as there may be remediation costs. Encumbrances such as rights of way or pipeline rights can also affect the value. Usability is determined by the land use plan and the development plan.
Land Register Extract and Register of Public Charges
Before acquiring a commercial property, a thorough examination of the legal framework is essential. The land register extract provides information about the ownership structure and any encumbrances on the property (e.g., land charges, mortgages). The register of public charges contains information about public-law obligations that burden the property (e.g., building setbacks, construction bans). A careful review of these documents is crucial to avoid unexpected surprises. The priority notice secures the buyer’s right to property transfer.
Development Plan and Preliminary Building Inquiry
The development plan governs the buildability and potential uses of a property. It includes detailed regulations regarding the type and extent of the building use, buildable areas, and construction methods. If no development plan is available, a preliminary building inquiry can be submitted to the relevant building authority. The preliminary inquiry provides information on whether a planned construction project is fundamentally approvable. A strategic use of a preliminary building inquiry can significantly enhance a property's attractiveness, as Immoportal highlights.
Contaminated Sites and Soil Surveys
Contaminated sites and soil pollution pose a significant risk. They can lead to high remediation costs and limit the usability of the property. A soil survey provides information about the condition of the soil and the presence of pollutants. If there is a suspicion of contaminated sites, such a survey is essential. The obligation to remediate typically lies with the property owner. It is advisable to gather information about potential contaminated sites before purchasing and to factor the costs of remediation into the purchase price calculation.
Financing Models for Commercial Properties
The financing of a commercial property requires careful planning and the selection of the appropriate financing model. The traditional bank financing remains a common option, typically involving a loan secured by a land charge on the property. An alternative is leasing, where the property is not purchased but rented. This can be particularly attractive for companies looking to save capital. There are also various subsidy programmes from the federal and state governments that support the acquisition of commercial properties.
Additional Costs When Acquiring Property
In addition to the purchase price, significant additional costs arise when acquiring a commercial property. The property transfer tax is a tax levied on the purchase price, the rate of which varies depending on the federal state. Added to this are the notary fees, which amount to about 1.5% of the purchase price, and the land registry costs for registering the change of ownership. These additional costs should definitely be taken into account in the financing plan.
Ongoing Costs After Acquisition
Even after acquiring a commercial property, ongoing costs will arise. The property tax is an annual tax levied on the value of the property, the amount of which is determined by the local authority. Additionally, development contributions may be incurred when the property is connected to the public road network or sewer system. These contributions can be significant depending on the municipality and the level of development.
Target Audience Definition: Who is the Ideal Buyer?
Successful marketing begins with defining the target audience. Who is the ideal buyer for your commercial property? Possible target audiences include property developers, project developers, investors, and private builders. Property developers and project developers typically seek large plots for residential or commercial construction. Investors are interested in properties with high yield potential. Private builders tend to look for smaller plots for building a family home or a small business premise. The approach to each target audience should be tailored to their specific needs and interests.
Creating a Compelling Brochure
The brochure is the most important marketing tool when selling a property. It should include all relevant information about the property, such as the location, size, buildability, and price. Professional photos are essential to showcase the property optimally. The descriptions should be detailed and precise. It is important to highlight the property's location advantages and development potential. A compelling brochure piques the interest of potential buyers and increases the chances of a successful sale.
Sales Strategies: Private Sale vs. Estate Agent
When selling a commercial property, you have the option between a private sale and appointing an estate agent. A private sale saves on agent commission, but it requires more time and expertise. An estate agent has a network of potential buyers and can professionally manage the sales process. The advantages and disadvantages of both options should be carefully considered. If you decide to use an estate agent, it's important to negotiate the agent's commission.
Capital Gains Tax: Deadlines and Exceptions
When selling a commercial property, tax considerations can play a significant role. The capital gains tax is incurred if a property is resold within a certain period (usually ten years) after purchase. The amount of capital gains tax is determined by the seller's personal tax rate. By adhering to the 10-year period, the capital gains tax can be avoided. However, there are also exceptions, such as when the property is used for personal purposes.
Business Tax: When Does the Sale Become Commercial?
Under certain circumstances, the sale of a commercial property may be classified as commercial. This is particularly the case if several properties are sold within a short period (three-object limit). In this situation, business tax is applicable. The impact on the tax burden can be significant. It is advisable to seek information on the tax implications before the sale and to possibly seek tax advice.
Property Acquisition Tax for the Buyer
The property acquisition tax is a tax that must be paid by the buyer upon acquiring a property. The rate of the property acquisition tax varies depending on the federal state and ranges between 3.5% and 6.5% of the purchase price. However, there are also exemptions and special regulations, for example, in cases of inheritance or gift. The property acquisition tax is a key factor in purchase price calculation.
Preparing for the Sale
A successful sales process begins with careful preparation. First, all relevant documents should be assembled, such as the land register extract, the development plan, and any appraisals. It is also advisable to obtain a financing commitment from the buyer to ensure that they can actually pay the purchase price. Good preparation saves time and hassle.
The Sales Contract at the Notary
The sales contract is notarised by a notary. The notary ensures that all legal aspects are taken into account and that the contract meets both parties' interests. The sales contract contains all essential agreements between buyer and seller, such as the purchase price, the transfer date, and the payment terms. The notary plays a central role in the sales process.
Payment Processing and Transfer of Ownership
After the notarisation of the sales contract, the payment processing takes place. The buyer transfers the purchase price to a notary trust account. Once the purchase price has been received, the transfer of ownership occurs. First, a priority notice of conveyance is entered in the land register, securing the buyer's claim to the transfer of ownership. Subsequently, the buyer is entered as the new owner in the land register.
Dealing with Legacy Contamination and Soil Pollution
Legacy contamination and soil pollution pose significant risks. They can lead to high remediation costs and limit the usability of the property. In the worst-case scenario, there might even be a remediation obligation. It is important to gather information about any potential contamination before purchase and consider the remediation costs in the purchase price calculation. Liability issues should also be clarified.
Disputes with Neighbours and Authorities
Disputes with neighbours or authorities can significantly delay or even prevent the acquisition of commercial property. It is advisable to seek dialogue with neighbours before purchasing and inquire about any potential conflicts. Additionally, the feasibility of the planned construction project should be clarified with the relevant building authority in advance. Good communication can help to avoid conflicts. If necessary, legal advice should be sought.
Buyer's Bankruptcy
The buyer's bankruptcy poses a significant risk to the seller. In the event of insolvency, it can be difficult to realise the purchase price. It is advisable to check the buyer's creditworthiness before the sale and, if necessary, arrange for security, such as a bank guarantee. Withdrawal rights should also be stipulated in the purchase contract.
The acquisition of commercial property is a complex process that requires careful planning and preparation. From accurate valuation to financing and legal security, there are numerous aspects to consider. With the right knowledge and a strategic approach, you can avoid costly mistakes and lay the foundation for your entrepreneurial success. The information on immobilien-abc.de can help you gain an overview.
Auctoa supports you with cutting-edge technology and comprehensive expertise in the assessment and selection of the optimal commercial property. Our AI-driven analyses provide you with precise and market-based valuations, enabling you to make informed decisions.
Key Benefits of Commercial Property Acquisition
Here are some of the main advantages you will gain:
Accurate Valuation: Avoid overpayments with precise AI-driven assessments.
Risk Minimisation: Identify potential issues early with comprehensive analyses.
Strategic Decisions: Make informed decisions based on real-time market data.
Are you ready to successfully acquire your next commercial property? Discover our solutions for commercial and building land and benefit from our expertise. Contact us today to start a personalised consultation and optimally prepare your project. Register for free and receive an initial assessment of your property's refurbishment needs immediately. Get in touch now!
Bodenrichtwerte Deutschland provides information and guidance for the valuation of properties.
Heid Immobilienbewertung highlights the importance of a qualified appraiser for an accurate valuation of properties.
Immoportal emphasizes the strategic use of a preliminary building inquiry to enhance the appeal of a property.
What differentiates a commercial property from a residential property?
The main difference lies in the intended use: commercial properties are intended for business or industrial activities, while residential properties are primarily for living purposes. This affects the buildability and valuation.
What types of commercial properties exist?
There are various types such as building land (ready for construction), land awaiting development (future building land), raw land (requires development) and derelict land (potentially developable). The choice depends on your specific needs.
How important is the location of a commercial property?
The location is crucial for success. Pay attention to good connections to transport routes and public transport as well as the existing infrastructure (electricity, water, sewage).
What role does the standard land value play in pricing?
The standard land value serves as an initial reference point, but the actual market values can vary significantly. A professional valuation by an expert is essential.
What factors influence the value of a commercial property?
Besides location, the buildability, layout, size, degree of development, contaminated sites, and soil condition influence the value.
What legal aspects should be checked before purchase?
Check the land register extract (ownership details, encumbrances) and the register of public charges (public-law obligations). The development plan regulates the buildability and usage possibilities.
What financing models are available for commercial properties?
Common options include bank financing (loan with a land charge), leasing (renting the property), and various support programs from federal and state governments.
How can the tax burden be optimised when selling?
Consider the speculation tax (deadlines and exemptions) and the trade tax (when the sale becomes commercial). The property transfer tax is payable by the buyer.
