Industrial Property Loan
Industrial properties are generally classified under URA as light industrial buildings, General Industrial buildings, Special industrial buildings and warehouses. They are generally classified under B1, light industrial activity and B2 which allows for higher levels of pollution.
There are many types of industrial property types, such as: -
- Private industrial properties
- HDB industrial properties
- JTC industrial properties
Different industrial properties comes with leases of Freehold and leaseholds. Leasehold industrial properties typically comes in 99 years, 60 years and more recently even 30 years lease.
There are 2 ways to buy an Industrial property loan: -
- As Individual; or
- As Company
For buying under company name, generally it will be under Private limited company and there are 2 distinctions: -
- Buying for business own use; or
- Buying under investment holding company for rental purposes
The companies will need to have financial statements and proof of profitability to qualify for a bank loan.
For buying under investment holding company, directors or majority shareholders will need to be assessed for Total Debt Servicing Ratio (TDSR)
. This is where it gets complicated as many business people tend to have multiple holdings of properties. Hence the need for debt restructuring becomes important. iCompareLoan mortgage consultants can assist to assess your overall debt situation and devise ways to make suggestions for improvements.