SRI BALAJI COMPLEX
SIVANTA COMPLEX
Faq’s
A commercial property is one which is used for commercial or business purposes, like to run an office or a warehouse. A residential property can be used only for people to live in.
These are the major categories of commercial properties: office spaces, retail spaces, industrial/warehouse spaces, hotels and mixed-use properties(they combine multiple property types like offices and shopping spaces in the same building).
Bank loans are the most common financial options in this regard. These include term loan(issued for a short period), letter of credit(a letter issued by a financial institution attesting the borrower will make regular loan repayments, and if not they would pay on the borrower’s behalf), collateral-free loans for SMEs and bank guarantee.
A lease term refers to the period for which you can lease a commercial property for your own use from the owner. Instead of paying monthly rents, you pay a lump sum at the start of the term.
Multiple factors are relevant in this context. These include the property size, location, the average footfall it attracts in the case of a retail space, the prospect for development of the neighborhood in the near future and prices of similar properties in other areas for comparison.
If you buy a commercial property using a business loan, you can get a deduction of 30 percent of your taxable income that has been invested in the various aspects including equipment and construction materials that went into the making of the shop/space. Please note that all answers provided here are for general information and not meant as legal/financial counsel.
FAQ’s
What are the different types of commercial properties?
These are the major categories of commercial properties: office spaces, retail spaces, industrial/warehouse spaces, hotels and mixed-use properties(they combine multiple property types like offices and shopping spaces in the same building).
What are common financing options for commercial properties?
Bank loans are the most common financial options in this regard. These include term loan(issued for a short period), letter of credit(a letter issued by a financial institution attesting the borrower will make regular loan repayments, and if not they would pay on the borrower’s behalf), collateral-free loans for SMEs and bank guarantee.
What is a lease term, and how does it work for commercial properties?
A lease term refers to the period for which you can lease a commercial property for your own use from the owner. Instead of paying monthly rents, you pay a lump sum at the start of the term.
How is the value of commercial property determined?
Multiple factors are relevant in this context. These include the property size, location, the average footfall it attracts in the case of a retail space, the prospect for development of the neighborhood in the near future and prices of similar properties in other areas for comparison.
What are the tax benefits of owning commercial property?
If you buy a commercial property using a business loan, you can get a deduction of 30 percent of your taxable income that has been invested in the various aspects including equipment and construction materials that went into the making of the shop/space. Please note that all answers provided here are for general information and not meant as legal/financial counsel.
