On the Road to building an Empire, Investments are key.

Purchasing your own Business Premises

March 11, 2016

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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