There are many reasons why you might find yourself in the market for a commercial property. If you’ve been successfully running your business in a rental unit, it may be time to look into buying something that could also potentially provide a great profit for you down the line.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Maybe you need a bigger space or your rent is becoming too high. Whatever the reason, it’s possible you could be better off buying your own property.
You must take into consideration, however, that owning your own company as well as a commercial property is a big undertaking, and not just financially.
Put your money and mind to good use
Probably the most convincing argument for purchasing your own property is that you’re making an investment. By paying the mortgage every month you’re that much closer to owning your home instead of throwing away money on rent.
Of course, before you buy anything, you need to consider every aspect of becoming a property owner and manager. You’ll need to have a good, solid plan for your business and be prepared for the added responsibility. It’s important to not only think about the short-term benefits, but also the long-term effects. You’ll also need to come prepared: preferable location, good transport links, room for expansion, building condition – the more questions, the better.
The next logical step after purchasing the property is to understand exactly what it takes to be a building owner.
Due to the current high demand in the rental sector, an investment property could be an ideal venture for the right minded person.
Financing the dream
Once you’ve found the right commercial property, your next mission is to secure it as a reasonable price and with a great mortgage deal. Commercial mortgages also come with certain benefits – regular monthly payments help you balance your budget and they come in handy because your mortgage interest is actually tax deductible.
There are a variety of providers that offer commercial mortgages and they all have different criteria for lending that you’ll need to meet. They each have unique terms and conditions and fixed loan-to-value ratios for their loans. This is where a commercial mortgage broker comes in handy.
A broker will help you to navigate the market and guide you towards a lender that not only understands your industry but also your individual business’ needs. It might be particularly tough for many self-employed doctors and dentists because banks tend to favour stabile income when lending, pushing borrowers to find providers that offer flexibility.
Adding a commercial property to your savings and investments portfolio could be a wise choice, indeed.
As specialist mortgage providers, Dental & Medical Financial Services give dentists and doctors expert professional advice on a whole range of products, including commercial mortgages. If you work in the dental and medical professions and are thinking about moving out of the rental market by purchasing a property for investment or income purposes, then we’ll be happy to help you in your journey.
Commercial loans for doctors and dentists
Practice purchase | Practice expansion | Healthcare specialists
Dental & Medical Financial Services have been helping doctors and dentists to realise their business goals for over 25 years.
Call Kevin to discuss your options.
Tel: 01403 780 770