When it comes to financing commercial properties, securing a commercial mortgage is an essential step for many business owners and real estate investors. AKAL Mortgage Inc. recognizes the unique needs and complexities associated with commercial mortgages and aims to provide valuable guidance throughout the process. Whether you’re looking to purchase, refinance, or expand your commercial property, understanding the ins and outs of commercial mortgages is crucial. In this blog post, we will explore the benefits of commercial mortgages, the various types available, and why AKAL Mortgage Inc. is your trusted partner in achieving your commercial property goals.
The Benefits of Commercial Mortgages
Ownership and Equity Building: Acquiring a commercial property through a mortgage allows you to build equity and gain ownership of a valuable asset. Instead of paying rent to a landlord, you are investing in your own property and potentially benefiting from its appreciation over time.
Cash Flow and Income Generation: Commercial properties, such as office buildings, retail spaces, or industrial warehouses, have the potential to generate steady cash flow through rental income. A commercial mortgage enables you to acquire the property and leverage its income-generating potential to grow your business or investment portfolio.
Tax Advantages: Commercial mortgages offer tax advantages, including deductions on mortgage interest, property taxes, and depreciation expenses. These tax benefits can significantly reduce your overall tax liability, providing financial advantages for your business.
Types of Commercial Mortgages:Traditional Commercial Mortgages: Traditional commercial mortgages are similar to residential mortgages but are specifically designed for commercial properties. They typically involve a fixed or variable interest rate, regular monthly payments, and a predetermined loan term. AKAL Mortgage Inc. offers a range of options for traditional commercial mortgages to suit various property types and borrower needs.
SBA Loans: Small Business Administration (SBA) loans are government-backed loans designed to assist small businesses in obtaining financing. These loans offer competitive rates, longer terms, and lower down payment requirements compared to traditional commercial mortgages. AKAL Mortgage Inc. can guide you through the SBA loan process, ensuring you meet the necessary criteria and maximize the benefits.
Construction Loans: For those looking to build or renovate a commercial property, construction loans provide the necessary funding. These loans are tailored to cover the costs of construction, including materials, labor, and permits. AKAL Mortgage Inc. can help you navigate the complexities of construction loans and ensure a smooth financing process.
Why Choose AKAL Mortgage Inc. for Commercial Mortgages
AKAL Mortgage Inc. is a reputable mortgage brokerage known for its expertise in commercial mortgages. When you partner with AKAL Mortgage Inc., you gain access to the following advantages:
Personalized Solutions: AKAL Mortgage Inc. understands that each commercial property and borrower is unique. They work closely with you to analyze your specific needs and financial situation, offering personalized mortgage solutions that align with your goals.
Extensive Network of Lenders: With a vast network of lenders, AKAL Mortgage Inc. has established strong relationships and can connect you with lenders offering competitive rates and favourable terms. This ensures that you have access to a wide range of financing options for your commercial property.
Streamlined Process: AKAL Mortgage Inc. simplifies the commercial mortgage process, guiding you through each step and assisting with the required documentation. Their experienced team ensures a smooth and efficient experience, saving you time and effort.
Commercial mortgages provide an avenue for business owners and investors to unlock opportunities and achieve their commercial property goals. AKAL Mortgage Inc. is your trusted partner in navigating the complexities of commercial mortgages, offering personalized solutions, access to a wide network of lenders, and a streamlined process. Whether you’re purchasing, refinancing, or expanding a commercial property, AKAL Mortgage Inc. has the expertise and resources to guide you towards success.
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.