The Advantages of a Commercial Mortgage

130419 Mortgage Options

Mortgage Options

Buying commercial premises is often a prudent investment and having your own property can be a major business asset. However, while there can be advantages of doing so there can also be some significant disadvantages too.

Why a commercial mortgage?

A commercial mortgage for property can be used to buy your business premises and the repayments can be structured either with fixed or variable interest rate payments. However, this type of mortgage can be used for more than just buying your business a new home. It can also:

  • Develop existing property
  • Develop new property
  • Extend current premises
  • Residential developments and projects
  • Commercial developments and projects
  • Buy land

Owning a commercial property has its benefits including:

Lower interest rates

Commercial property mortgages typically have lower interest rates than other unsecured borrowing. Choosing to have fixed monthly repayments means you can accurately use them in your business planning and forecasting, enabling you to structure the finances of your business with a bit more certainty.

Capital gains

Substantial capital gains can be made you when buy a commercial property. This can be a good way of realising capital growth over a long period as (long term) property prices always rise.

Renting potential

If you have any additional space in or on the property you own you can monetise it by renting out the surplus space to generate additional income.

Financial planning

Commercial property mortgage payment plans usually extend for a number of years which allows a business to focus on other important business matters such as sales, monitoring overheads and training staff.

No 'empty money' rent payments

Your mortgage payments will probably not cost you any more, per month, than what your equivalent rent would be. But as you own the building, your equity in the property will continue to grow with each mortgage payment, providing you with a more solid financial foundation.

Capital gains

Long-term property prices rise and buying your own premises is a form of investment - so long as the area you are buying in is right. Business property prices can often rise quickly in a short space of time, making your investment a shrewd one.

Ending a mortgage

If you find yourself unable to pay your mortgage, or you need to move to bigger premises, or if you decide to close your business, you are still left with plenty of options if your mortgage is commercial. While getting out of a long-term leasing arrangement can often be difficult, a mortgage can still be covered if you decide to sell the premises or if you decide to rent it out and maintain the asset.

Source: accesscommercialfinance

Financial Capital Group, LLC is a lender that provides home and commercial finance solutions for business, professionals, individuals and families since 1999. Our love and care for others is directed as much within our walls as it is outside of them. Our desire is to work together to meet the needs of our customers.

13 Mortgage Options

Mortgage Options.

Houston Mortgage Company, Houston Residential Mortgage, Commercial Mortgage, Construction Mortgage, Industrial Mortgage, Land Mortgage, Refinance Mortgage, Mortgage, Conventional Mortgage, Mortgage Insurance, Private Mortgage Insurance, Mortgage Options, Mortgage Programs, Mortgage Rates, Mortgage Professional, Mortgage Calculator, Mortgage Application, Mortgage Process, Mortgage Loan Process, Loan Options, Loan Company, Conventional Loans, Personal Loan Insurance, Loan Options, Loan Programs, Loan Professional, Loan Estimate, Loan Calculator, Loan Application, Financial Capital Group

Contact Info
Financial Capital Group Logo

112 W. 4th St Houston, TX 77007
M: P.O. Box 1319 Houston, TX 77251

Phone: 281-789-8975
E-Fax: 281-817-7707
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Company NMLS #1058422

FOLLOW US

facebooktwitterlinkedinparksgoogleyoutube 

   

Newsletter




Equal Housing Leader

© Financial Capital Group. Website designed by LaraNet | Expand Your Business!