A few things to few consider when it comes to commercial property
As a business owner, you could be able to take advantage of a variety of options with regard to holding your commercial property. It can be owned by the proprietors (that’s you), by the business itself or possibly through a trust.
Each of these choices involves different pros and cons. The choice best suited to your needs will depend on your circumstances and how the ownership and operation of your business is structured.
Commercial property loans
Lenders offer a wide variety of commercial property loans. The sort of loan best suited to your needs will depend on whether you are buying commercial property as an investor or as a business owner.
Commercial property loan rates vary between lenders though they are often higher than for a normal home loan. That’s because commercial property can be seen as a riskier investment.
Offering residential property like your home or rental property as security could help to lower commercial property interest rates.
Be prepared to pay a higher deposit
Commercial property loans usually need a deposit of at least 30% of the purchase price.
Different types of commercial property loans
Most commercial property loans work in much the same way as a home loan. With options to choose between a variable rate, fixed rate, split rate, principal and interest or interest-only loan. Many commercial property loans also come with useful features like fee-free additional repayments or an offset facility.
Alternatively, if it is an option for your circumstances, you may prefer a line of credit commercial property loan. This gives you funding up to a predetermined limit and you only pay interest on the funds drawn down.
Expert advice matters
If you’re looking to take the leap into commercial property, give Your Mortgage Choice broker a call today. They can provide you with the expert advice you need when it comes to selecting a lending solution suited to your business needs and budget. They can also work with your accountant to find the lending solution and ownership structure that’s right for your circumstances.