Purchasing your own Business Premises

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.