As a successful business you may feel that you are able to gain a benefit or great return from owning commercial or industrial property. We are proud to be Australia’s Business finance specialist especially when it comes to finance for the purchase of Commercial or Industrial Property.
Why would you want to borrow money to purchase Commercial or Industrial Property?
There are many benefits to borrowing money to purchase a property as there are also some points to be aware of:
Purchasing commercial or industrial property can be a good investment for your business provided you have done sufficient research and the investment makes commercial sense.
You may be able to expand your supply chain and reduce operating costs through ownership of a factory/warehouse/industrial property or retail shop.
It may make financial sense to own the property you operate your business from rather than leasing.
There are great tax advantages to owing commercial or industrial property, particularly where it relates to your existing business.
Lending against property is the preferred option by many lenders and as a result accessing funds to purchase a commercial or industrial property is generally easier than some other purposes.
Some things to keep in mind:
You should consult your accountant prior to formalising any purchase agreement to ensure you have the best structure from a taxation view point. An incorrect structure can have a large impact on the return you can get from your investment.
Lenders have limitations on how much they will lend against a commercial or industrial property which is generally lower than the percentage of the value they will lend against residential property. This means you made need to contribute larger amounts of cash or equity to complete the purchase.
Commercial or industrial property investment is different to residential property investment. You should ensure you have adequately researched the purchase before committing your hard earned capital to ensure that you are aware of all aspects including ongoing costs associated.