Owning commercial property is the dream of every individual. Commercial property is among the most lucrative asset an individual can have. However, acquiring a commercial property using your savings may be impractical. The good news is that there are mortgages which you can use to own business premises.
You will also realize that commercial mortgages are more flexible. They can also be used to develop a property that is already existing, buy land, finance commercial projects, and expand current premises.
Here are the benefits that you are going to enjoy once you get a commercial directors mortgage.
1] Low-interest rates
One of the significant advantages of commercial mortgages is that they have a lower interest rate in comparison to other forms of borrowing. More so, you can choose the fixed repayment option. It is easier to plan with this, you can be able to come up with a repayment structure that is certain as you forecast your business revenue.
2] Capital gains
This is because there is no point in time that the prices of the property will decline except in the instance of a major market crash. In the long run, you will realize substantial capital growth – such as, for example, when you sell the property.
3] You can monetize it
Commercial property can be rented out. This probably makes it the easiest kind of mortgage to settle. By renting out spaces in the property, you can generate additional income, which part of it could go to making monthly payments. The burden is usually less with a commercial mortgage, considering that the interest rate is also low.
4] Financial planning
As previously mentioned, commercial mortgages are favorable when it comes to financial planning. There is another way that they facilitate that. Remember that the mortgage plans usually extend for a certain period.
While that may be the case, businesses have enough time to focus on production and profit-making. This also allows them to come up with a fixed repayment plan and avoid defaulting.
5] Increased equity
The most fantastic thing about commercial mortgages is that the monthly payments will never cost more than your monthly rent. In this case, you will be better off than someone who is just paying for rent. Every time you make a monthly payment, you increase your equity in the property.
6] Getting out of the mortgage is easier
A person with a commercial mortgage has so many options. For instance, if you have a business, you can comfortably close it. As much as ending a mortgage involves tedious processes, the implications are less. For instance, you can easily sell the property, lease it, or rent it out and maintain it as an asset.
If you are looking to invest in commercial property, consider getting a commercial mortgage. The options are many, offering you a lot of flexibility. Talk to your lender and find out more about the terms of your commercial mortgage.