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A SHORT GUIDE ON COMMERCIAL PROPERTY LOANS

by Harry

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Finding a right commercial property to make an investment needs much more
efforts than a residential one. It’s obvious that it’s better to buy the
property than renting it. As buying will offer you capital returns and will
remain your investment until you sell. A commercial property includes retail
premises like shops and supermarkets, office spaces, business centres,
warehouses and hotels. Owning a commercial property also offers tax advantages
to the investors adding diverse properties in their portfolios.



Do you ever think what is the difference between financing commercial property
and financing residential property? Here some of the major differences are
given:

 * In residential property, you can finance 90%-95% of the amount usually. On
   the other side, in commercial property, you can finance nearly 70% of the
   property value.
 * The commercial property loan terms are lesser, between 15-20 years, whereas,
   the residential property loan term is for 30 years.
 * The lease terms also differ. The commercial property lease term is longer
   generally and the residential property lease term is between 6-12 months.

Searching a commercial property to invest might be easy, but its purchase is
not. Get the right experts to help you through the commercial property financing
and its process. Commercial property is not an asset that you just purchase and
sit back. Scenarios and conditions change, especially the economic ones, thus,
it is imperative to stay updated. Thus, there are certain merits of involving a
mortgage broker while applying for Commercial Property Loans in Australia, such
as:

 * Tracking the appropriate lender –It is not an easy task to find out a perfect
   lender for your business loans. You will have to waste a lot of time in the
   search of the lender. For this purpose, a well-qualified and highly
   experienced mortgage broker is required who will find a lender for you
   without wasting your time. Mortgage brokers with good relations with the
   lenders will help you get best loan options.
 * Dealing with multiple lenders – There is always a risk in dealing with a
   single lender as it takes a lot of time for the completion of whole process
   and approval of loan. However, in case, if the loan is not approved by the
   lender, you will have to repeat the whole process for other lender. Thus,
   with the aid of an experienced mortgage broker, you can deal with multiple
   lenders and can submit your loan application to them for approval.
 * Comparison of costs offered by lenders – With the help of mortgage brokers,
   you could easily compare various interest rates, costs and the fees offered
   by different lenders. The brokers will help you to choose the lenders
   offering reasonable rates among other lenders.

A broker can help you explore multiple financing options as per your borrowing
power and repayment capacity, such as –

 * Low doc/no doc commercial loans-This loan type is ideal for those who are
   self-employed, small business owners or someone with irregular income
   sources, low doc/no doc loans are available from top Australian lenders.
 * Commercial property finance-Whether you need funds for expansion, purchase,
   leasing, investment of refinancing a commercial property like offices,
   factories and retail sites, you can get Interest-only or Principal and
   Interest Loan, Variable or fixed rates, Construction loans, Full doc, Low doc
   and No doc funding options.

Take the help of a broker when you have made up your mind to go for Commercial
Property Loans in Australia. A broker is of great help when it comes to
evaluating financial capabilities of a borrower, find appropriate loan as per
the needs, works on repayment plan, handle the entire paperwork and follow up at
all stages.

A professional mortgage broker will definitely help and follow up at every
point. They will be with you from the pre-approval to the settlement stage.

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 * Next article The Basic Habits To Be Good With Money


WRITTEN BY HARRY

The author is a veteran from the field of finance, who works at Loans Direct and
is writing a lot of informative stuff since long. Follow him here.


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