For years, buying a home had been his priority.
He had been renting for several years and eventually made the decision to purchase the property he lived in.
Once he became a homeowner, a different question came up:
“If I can own my home, could I eventually own the building my business operates from too?”
It was a question he had never seriously considered.
The Business Was Already Paying Rent
His business had been operating from leased premises for years.
Every month, rent was paid as another business expense.
The business was growing, but the premises were still owned by someone else.
So we started looking at the bigger picture.
Rather than simply asking, “Can he get a commercial loan?”, we looked at whether owning the premises could make sense for his business long term.
We considered:
- Business income and cash flow
- Existing home loan
- Available equity
- Current rental commitments
- Borrowing capacity
- Future business plans
- Commercial property options
But Buying Isn’t Always Better
This is an important part of the conversation.
Owning commercial property isn’t automatically the right decision for every business.
There are additional costs, responsibilities and risks to consider.
For some businesses, continuing to rent may provide greater flexibility.
For others, purchasing the premises could provide greater certainty and the opportunity to build an asset over time.
The right answer depends on the business, the numbers and the long-term strategy.
The Question Worth Asking
His home purchase changed the way he thought about property.
He realised that the place where his business operates could potentially become more than just another monthly expense.
It could become an asset.
The question isn’t:
“Should every business owner buy their premises?”
It’s:
“Have you looked at whether owning yours could make sense?”
Thinking About Your Business Premises?
Whether you’re renting a warehouse, office, retail space or industrial property, understanding your options is the first step.
Loans Sorted can help you explore the commercial finance options available for your circumstances.