Commercial property can be a good investment on a business standpoint and also for investment rental yield. If your business is currently paying a high monthly rental for the office space, buying a commercial property for your business operations can mean a much lower monthly payment and you get to have ownership of the property as well. For investment, you can be looking at a stable monthly stream of rental cash flow if your tenant is a stable business.

Small medium enterprises (SME) are really beginning to realise the benefits of owning a piece of commercial property utilising commercial mortgages. It can mean lower monthly payments that ease cash flow that is key to smooth business operations. When the company grows too big for the property in future and needs to relocate, the company will also make capital gains if the property is sold in the open market in future.

The lease period for commercial property tends to be longer compared to residential property. You can even add a clause to review rental annually. Businesses renting commercial property are more agreeable to this feature. Occupants of commercial property also tend to maintain the place a little better than a residence since the look of the office represents the image of the company.

In Singapore, you can purchase commercial property as an individual or as a company. Documents required for commercial mortgage when purchasing as a company differs a lot than if you were to buy as an individual. For an individual, the key documents for Singapore commercial mortgage loan are those that verify proof of income. For companies, the financial statements are must-have documents.

Commercial mortgage rates can also be different than those you see on residential mortgage rates. Among others, there are fixed rate mortgages, floating SIBOR and SOR pegged mortgage loans to choose from.