- Property Ownership
One of the most significant advantages of a commercial mortgage is that it enables your business to own property rather than rent. Ownership can provide stability, eliminate rental inflation concerns, and offer potential tax benefits. Property ownership also allows you to customise your space to meet your business’s specific needs.
- Building Equity
As you make mortgage payments, you build equity in the property. This equity can be a valuable asset for your business, providing financial leverage for future investments or expansion. Equity can also be used as collateral for additional financing needs. Please remember that the level of equity seen at any one time, depends on the value of the property and the level of borrowing that is lent against the property. As such the level of equity can fluctuate over time and may fall, as well as rise.
- Potential for Appreciation
Commercial property can potentially appreciate over time, increasing the value of your investment. The capital appreciation (of the property) can significantly enhance your business’s balance sheet and provide an upside if you decide to sell the property in the future. The converse is also true, in that the property’s value will fluctuate in line with market dynamics.
- Tax Advantages
Owning commercial property can potentially offer several tax advantages but you should you speak to an expert tax adviser about these.
- Rental Income Opportunities
If your business does not occupy the entire property, you can lease out unused space to other tenants. This rental income can help offset mortgage payments and other property-related expenses, providing an additional revenue stream for your business.
We can also provide Commercial Investment Mortgages, where the property being purchased is to be rented out to 3rd parties.
- Improved Cash Flow Management
We offer both fixed and variable rate Commercial Mortgages. With a fixed-rate mortgage, your business can benefit from predictable monthly payments, aiding in more accurate financial planning and cash flow management. This predictability is often more advantageous than dealing with fluctuating borrowing costs.