Commercial real estate leasing: why choose it as an investment?
In fact, the purchase of a commercial property can be a problem if you don’t have the right amount to invest, for this reason there are different solutions for properties that are not for residential use; among the best known we find unsecured or mortgage loans , even if unlike mortgages for residential properties, the mortgage for the purchase of a commercial property has greater limitations and specific release conditions; precisely for this reason, the best solution today for the purchase of a property for non-residential use is the commercial real estate leasing which offers various advantages both for companies and for independent entrepreneurs houses for sale South Philadelphia.
What is commercial real estate leasing?
Commercial real estate leasing is a type of loan stipulated for the purchase, construction or renovation of industrial or professional buildings for all VAT number holders for investment purposes .
What is real estate leasing?
When we speak of commercial real estate leasing, we refer to a lease agreement stipulated between the tenant and the bank or other credit institution in which a periodic rent and a specific deadline are established. The lessee will lease the property by paying a monthly fee; at the end of the established period, having reached the determined deadline, the tenant will have the possibility to choose whether to redeem it by acquiring the property or to return it. The lessee will have the option of purchasing the commercial property against payment of the difference between the fees already paid during the lease years and the total value of the property.
Advantages of commercial real estate leasing
In addition to the convenience of the formula that allows you to try for a period and then decide whether to buy the property, there are other advantages that lead more and more investors to choose commercial real estate leasing.
Among the first positive aspects of commercial leasing we certainly find the formula of the leasing installments : the lessee can choose to pay a monthly, bimonthly or quarterly installment over a period ranging from 8 years to 20 years and combine, together with the installment, a solution insurance; you can also include renovation and adaptation works in the financing. The initial installment will fluctuate between 10% and 30% but the higher the initial installment.