Commercial finance

Commercial finance is often used by property investors to move into the next investment market considering commercial properties are regarded as one of the safest investment with long term leases and national tenants you can secure a great commercial property that will pay itself off and put extra money into your pocket while also growing in value every year. This is what long term commercial investors do and is known as compounding interest so after 10 years this may have gone up say 50% which is 5% PA growth which is quite achievable if you have done your due diligence.

Although this sounds all great on a face value commercial property has many different criteria’s for example if you wanted to buy a motel you would need to have up to 50% of the costs as these types of properties are known as specialised security and usually have an lvr of up to 60%. Where as a retail office space you can lend up to 85% of the value of the building this is why you see many investors buying retail offices and industrial complexes as these two commercial properties are far easier to get finance for service station in particular are very difficult to get finance on as they are also a specialised security property and you will need around 50% deposit to even consider this option although if you can find a way around this most service stations have very good long term leases with plenty of positive cash flow so in conclusion if your looking for commercial finance you should look into retail shops, Offices and industrial buildings.