Investing in commercial property comes with a different set of advantages than that of investing in residential real estate. Commercial property has the ability to offer a higher rate of return but this must be weighed against the potential of longer vacancy periods. Due to these special circumstances and pressures, commercial property loans come under different assessment criteria to residential loans.
The amount that you can borrow for a commercial property is largely dependent on the type of property to be purchased and the purpose of the loan. Purchasing for investment for example, is considered a lower risk to the lender than purchasing property for your own business premises.
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If you are unfamiliar with the key differences between commercial and residential properties, we have listed a few key points below.
