A Commercial Mortgage is a Fruitful Investment for Growing Your Business in Today’s Economy

Any business needs a commercial property to operate from. When starting a new business or expanding an existing one, a business leader is faced the choice of either buying or renting a suitable commercial space. For a lot of business owners, renting seems the simplest option. However, there are several advantages to getting a commercial mortgage and buy a suitable commercial property. Let us take a look at some important reasons which make getting a commercial mortgage and buying the property is a great option.

It makes long-term financial sense

If you like making long-term business plans, then a commercial mortgage option should be on top of your list of considerations. A mortgage instead of rented commercial space makes a lot of financial sense, especially in the long term. When you pay rent, it is basically a pure expense, you don’t get anything more than the right to use the property for the stipulated time. However, if you buy a property for a mortgage, the instalments can be considered as investments, since you own the property at the end of the repayment term. The extra expense here is usually the interest on the mortgage, which is often tax deductible. You can also get lower instalments for a longer term of payment. The instalments are usually fixed, and even with a variable rate of interest, there is not as much variation as is possible with rent. If the property value increases, the rent can increase significantly, thus costing you more. However, if you own the property, this can actually be your advantage.

Greater flexibility

A commercial property mortgage allows you greater flexibility. You have the option to pay lower or higher instalments by varying the repayment period based on your business finances. But in case of rentals, you will have to pay the fixed amount regardless of anything else. You can also choose market-based or fixed interest rate to have greater security against fluctuations in the market interest rate. If you need to make any renovations or other changes, you don’t need to seek anyone’s approval since you own your property. This enables you to make decisions faster.