Some people dream of opening their own shops and living right above it. It’s a very convenient arrangement, as you don’t have to worry about the traffic or your commute. Plus, you get to keep an eye on your property day and night.
But will you be able to find a property that will suit your needs? Should you start looking at browsing commercial real estate listings or search for a residential property instead?
What You Need to Know About Mixed-Use Properties
Before you get excited about the prospect of owning a live/work property, there are a few things that you should know. This kind of property is not exactly the most common option out there, so a little overview can really help you make the right choice.
Commercial-Residential Properties Do Exist
The very first thing that you need to know is that these properties do exist. A lot of old commercial buildings have residential apartments above them so they’re not entirely impossible to find. It’s just that they’re not very common. You might not be able to find them in abundance if you’re thinking of taking a pick from what’s available.
Depending on your location, you can find a property with a commercial space and residential units attached to it. However, if you want to build a mixed-use structure in a commercial property, things can be trickier. There could be zoning laws in your city or province that can prohibit you from doing so. To be safe, make sure to check with a real estate lawyer if local laws and regulations will let you proceed with your plan.
These Properties Tend to Be Expensive
Commercial properties are often located in commercial zones so there’s a good chance that they’ll come with a hefty price tag. As most of them are also buildings, the square footage can also add up to the costs.
Then there’s also the fact that not every mixed-use building is actually maintained and approved for residential use. Residential properties are subject to stricter building codes in some areas and old commercial buildings might not be up to code.
You should also consider the electric and water rates you’ll need to pay for living in a commercial district. In many areas, commercial properties pay for higher rates because of local regulations, so you should check out how this can affect you.
Make sure to also consider the additional costs that repairs and maintenance will add to the property. This way, you can be sure that it will still be a wise investment for you.
There can be a Literal Hunt for These Properties
As mentioned above, mixed-use properties are not always readily available. In many cases, you will need to go on an actual search for one. You might have to go driving around and looking at ‘for sale’ signage to find a good mixed-use property that you can buy. Of course, you can also just enlist the help of a realtor to make things simpler.
In any case, there’s a good chance that you can’t just check out commercial real estate listings for these properties. They’re not often categorized as a mixed-use property as not every listing website has that classification. So if you’re really interested in one, you have to be ready to go on a house hunt.
Loans can be Trickier to Get
Buying a commercial property is not the same as purchasing a residential home. It will help if you’ve already bought a house before, though, so you’ll know the basics. A good deal of research can also help you, so make sure to do your homework on property investments.
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