How Your Business Can Buy A Commercial Property

How much cash do I need to buy a commercial property?

Right now interest rates are VERY low. For proven clients commercial property interest rates are just above home loan rates. For many businesses the cost of a loan may be lower than paying rent. A commercial property loan can be taken out to purchase any non residential property which a business can operate out of such as: an office building, retail shop, warehouse or factory.

My clients ask me “How much cash do I need to buy a commercial property?” There is no one answer to this question. The amount you need varies according to your individual circumstances. You may even be able to borrow the full purchase price if you have enough equity in another property. Don’t worry though, even if you don’t own a property we can help. We have financed commercial properties on a standalone basis at up to 90 per cent of property value. This can work if your business has a strong cash flow.

Most of my clients who purchase commercial properties set up a new entity, and the business pays rent to this entity. As I am a qualified accountant I have the skills and knowledge to work alongside your accountant to structure the right loan to enable your business to buy a commercial property.


Published: 4/12/2014
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