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5 Reasons to Consider An Owner-Occupied Commercial Mortgage

Commercial Mortgages, Owner Occupier Mortgages
Commercial Mortgage

Many businesses start out operating from commercial property that they rent from a landlord. This can be the most viable option for many companies who do not have the capital or collateral to purchase a property initially, or this may be the only way to secure a unit in a desirable location where property prices are high.

However, buying your own property to operate from is a dream for many business owners who see this move as a long-term investment in their enterprise and a way to save money in the long-term. We discuss this topic and some key reasons to consider an owner-occupied commercial mortgage.

  1. Stop Dealing with Troublesome Landlords

A major complaint from many business owners is the unnecessary restrictions or expectations placed on them by landlords. This can include slow responsiveness when it comes to fixing or improving appliances and services, or issues with how the interior or exterior of the building is decorated as renting does not grant tenants the right to modify or change the property at will.

In some cases, property owners will increase the rent of their commercial tenants with minimal notice or justification. Having a long term agreement in place, such as a 5-10 year lease contract, can minimise the impact of this, but the risk that this could eventually happen will always be there.

  1. Long Term Security for Your Business And Staff

When renting a commercial property, there is always the chance that you and your staff may need to move out if the landlord decides they do not want to extend your lease after you have reached the end of your current contract. Doing so can potentially have an immeasurable impact on your operations as well as disrupt the lives and productivity of your staff.

Specifically, if you are running a food services business such as a restaurant, bar or coffee shop, building up local awareness in a new location can be incredibly hard. Alternatively, owning your commercial property will give you and your team longer-term security—allowing you to decide if and when you move.

  1. Benefit from the Sale of the Property

Owning your commercial unit through an owner-occupied commercial mortgage means that each payment you make will add to the return you’ll receive should you sell. If the property increases in value over time, you will also enjoy a better return on your investment.

  1. Build Brand Equity

As well as building financial equity through your owner-occupied mortgage, permanently owning a commercial unit can also contribute to your brand equity over time.

Catering to customers or clients through a fixed long term property can improve your reputation in the market and increase awareness among key demographics. Whether it’s a restaurant or head office, the right commercial unit can support your reputation and sales as you scale your business.

  1. Save Money In the Long Term

As well as saving money that you would pay to someone else to use the property, you’ll also protect yourself from increase in fluctuating rental prices. You can also choose to sub-let a part of the property to pay towards your mortgage payments and increase the status or foot traffic that your business and premises receives.

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