Purchasing your own Business Premises
MFAA
Some businesses choose to buy rather than rent their business premises. To do this, they take out a commercial property loan.
Commercial property loan repayments - effect on cash flow
Many small businesses prefer to rent rather than buy for cash flow reasons. However, there are a number of factors that can make buying your business premises an attractive option.
Commercial property - self managed super funds
Many businesses these days have their own self managed super funds. Rather than invest in a share or property trust, some of these businesses choose to invest their super funds in their own commercial property.
Commercial property - interest is tax deductible
If the property financed by a commercial property loan is used entirely for business purposes, the interest charges on the loan are wholly tax deductible - as are any maintenance charges. If the property is partially used for personal purposes, only a commensurate proportion of your interest and maintenance charges is tax deductible.
Your commercial property could make a capital gain
Over recent years, property prices have appreciated markedly. If this trend continues, you might make a capital gain on your commercial property.
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