CHAPTER 16 Expenses to Consider o Consider
Underestimating total costs by not including “hidden” fees of a real estate purchase is a common mistake made by business owners. There are obvious costs, such as paying a moving company, changing, or moving your service providers and even your down payment. The opportunity to buy and move into your own building will bring more costs than you think. Lost productivity and closing costs are an example of undercover costs. By planning out each cost, even if it isn’t obvious, you can successfully plan your budget without going over it.
Here are some expenses to consider.
RENOVATION AND REP N AND REPAIRS
When you lease, your landlord has a budget for improvements you need before you move in. Now that it’s your investment, that is on you. You get the property as is. Most likely some work will need to be done to the space. Besides the actual purchase, this is the biggest cost. You’ll need space planning, construction planning, and bids — then the real buildout. Usually, it enhances the building’s value and can be a worthwhile investment. When you do your tours and eventually make the deal, you will have determined how well the property can handle the weight of your company and your day-to day-business. The biggest renovations are the roof, foundation, floors, plumbing, and 93
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