Residential properties are the default option when buying property for investment purposes. A new commercial property singapore, on the other hand, has grown in popularity in recent years.
Other motivations to buy a commercial property include the desire to own your own business space or reduce the amount of taxes you must pay.
Things to think about when purchasing a business property
From retail malls to factories to heritage shophouses, each type of property has its own set of dangers and rewards, as well as a wide range of prices.
Choose a property type that matches your first budget and offers the features you desire or are most comfortable with.
Meanwhile, choosing new commercial property in Singapore in heavily populated residential districts may be ideal, but be mindful that changes in the region, such as an en-bloc sale, may alter, which may affect human traffic and, by implication, your business.
If you plan to buy a commercial property to rent out, location is also an important factor to consider. Properties in densely populated regions adjacent to stations and bus terminals would almost probably see increased demand from potential retail tenants.
Furthermore, commercial property interest rates are greater than house loan interest rates, despite the commercial loan period being shorter than home loan tenure.
If the borrower is an operational firm, the evaluation will often be based on the company’s financial status, whereas purchasing as an individual will be subject to the total debt servicing ratio calculation.