Taking the right steps to build equity in the commercial property
Owner Occupied Real Estate is where the business owns the building or space it occupies for commercial and operating purposes. Owners may purchase the property outright or take out a commercial mortgage to access needed funds. As you build equity in the property, your business gains another valuable asset it can use in the future. Many startups or small businesses begin by renting. but as they grow, these companies’ needs may change, or they may experience rising rent prices that negatively impact profit margins.
Advantages
- Low Financing Rates – the mortgage interest rate are low allowing your commercial purchase to be less than leasing.
- Equity Appreciation – As you gain equity in your business real estate it becomes an asset that you can leverage later on.
- Cash Flow – you can create cash flow to help pay down your mortgage and offset the cost of your commercial investing If you have extra space to rent to other tenants.
- Tax Advantages – Owner occupied commercial real estate allows you to depreciate the asset, write off the yearly mortgage interest and enjoy tax deductions.