Are you looking to purchase your own commercial property space? Or are you an investor looking to invest in commercial properties for higher returns?
If your answer is a resounding “yes”, then you will want to read on as you will learn the two most important financial concerns you need to look out for when buying a commercial property.
Loan interest rates
If you’re not considering a commercial property loan when it comes to buying a business space, then you may be missing out alot. Smart investors know the power of leveraging on loans to build them build equity in their businesses.
Therefore, before you decide on any mortage loan, it is important that you understand the difference between fixed and floating interests.
Generally, fixed interest rates are more attractive to small business owners as the monthly loan repayments are fixed for several years, especially so when there’s higher fluctuations in the market, opting for fixed interest rate mortgages. can help businesses or investors limit their exposure to those fluctuations.
Like anyhwere else in the whole, commercial property rental in Singapore vaires considerably according to location.
Therefore, if you’re looking to get a commercial property for investment, it is important to conduct research on the rent prices in the area you are considering of buying at. Don’t forget to also examine the property type and location, as these can have a great impact on rental yield.
Take for example in recent years, commercial retail space prices are falling drastically. which will inevitably impact the retail commercial property rental yield as well.
For other commercial property types, like office spaces for example, the newly renovated unit in a new, nice building can for sure command higher rents as compared to a run-down office building in the same location. THerefre, it is important that you look at all aspects of the business property before deciding on one.