Five Benefits of a Commercial Mortgage

If you are considering purchasing a commercial property, you have the choice to take out a commercial mortgage that offers several benefits to your business. Instead of opting to rent the property or consider other finance arrangements, below mentioned are some of the benefits of getting a commercial mortgage:

1. The interest rates are low

When compared to unsecured borrowing, commercial mortgages tend to be more favourable. The interest rates are low when compared to other types of loans. When you are calculating your business outgoings, it would be better to have fixed monthly payments as it will enable more accurate forecasting. When you crack a fantastic commercial mortgage deal, the scheduled monthly payments will work out better than paying rent monthly. Over time, you will be saving money rather than occupying the building.

2. Capital gains

For many decades, the price of property has been on a rising trend, so there is a strong chance that the value of your commercial property may also rise. This can potentially provide you with a lump sum payment when you decide to sell the property. The money can be used during your retirement. However, keep in mind, that you are liable to pay capital gains tax on the profit received from the sale of the property. Renting property is usually seen by many as dead money. Instead of paying off the outstanding amount and taking ownership of that property, by renting out, you are just handing over money to the landlord.

3. Make income through renting a part of the property

If you own the property, you can rent the additional space that is attached to the property. This gives you an opportunity to make a significant additional income by renting out office spaces, storage space etc.

4. Gives you more control over building presentation

Your commercial premises can play a vital role in your business reputation. If your clients are visiting your premises to purchase products or for meetings, you have to ensure that the space is presentable. If you have full control of the property regarding exterior displays, decorating, and landscaping, you can dictate how professional your business is seen by others. If you are renting a property, the landlord has complete control over things like décor, facilities management, external upkeep, and other things. You might not even get permission to display your signage, including customizing your brand colours.

5. Easier to get out of

If you own a commercial property and choose to sell it, it is much easier to find a prospective buyer than getting out of some technical commercial leases. Commercial leases are often lengthy and at times, it can be difficult to leave the lease early.

If you are considering taking out a commercial mortgage rather than renting or leasing, please do not hesitate to get in touch with the experts at AKAL Mortgages. Whatever your mortgage needs, you can rest assured; that the professional and friendly team have got you covered. Call today to book an appointment.