Workplace Loan Calculation (Shop/Office)

What Is a Workplace, Shop, or Office Loan (Commercial Loan)?

When people invest in real estate or enter business life, they may not always have millions of liras (cash capital) available. Workplaces are immovable properties with commercial return potential in terms of physical structure and location (Shops, offices, clinics, production facilities, factories, etc.). The specific financing package provided to both individual customers who want to buy shops for investment purposes and rent them out, and commercial SMEs who want to take funds from the bank instead of paying rent and operate by buying their

Workplace (Commercial Property) Loan,

own property is called a

What Kind of Mathematics (Calculation) Do Banks Run for Workplace Loans?

The basic defensive weapon of banks against the possibility of the commercial loans you will use not being returned is to put a mortgage on the property you will buy, i.e., to have an appraisal done. Here are the basic rules to know:

Appraisal Ceiling Bar:

While banks can easily give credit up to 80% of the value of the house when buying a residence, this rate is usually left in the 50% - 75% bar in Workplaces (Shops). In other words, if you liked a plaza office worth 10 Million, you must have a 2.5 Million down payment in your pocket.

Tax Additions (Multiplier Effect):

Although the monthly interest rate seems to be 3.5%, the system does not perform a simple net interest transaction like us. Since the state adds fund (KKDF/BSMV) taxes on top of every commercial interest, the compound multiplier is reflected in the installments. Our tool adds these legal taxes automatically.

Income Test:

If you cannot show a corporate (Company) balance sheet (Corporate tax, trade registry) that can comfortably pay the installments, the limits are lowered.

Amortization Period (Investment Return Speed) Strategy

Many experienced investment advisors advocate buying shops (workplaces) instead of residences. The reason for this is the

Amortization Speed (Return)

calculation. When you buy a house, the speed of the house paying for itself with its rent is between 18-25 years (250 months) in Turkey. On the other hand, the monthly workplace rent of a reasonable small shop bought on good streets is 2-3 times higher than a residence because it is commercial, and it amortizes its price in 12-14 years. Therefore, the

"strategy of making the property's own rent pay the loan"

for a wisely bought office with very high rental potential is used as a golden rule in the business world.

Fixed Installments and Corporate Tax Advantage

When a normal individual (civil servant, etc.) takes out a loan, interest is a loss for them. However, if owners of a commercial limited or joint-stock company take out a workplace loan, the monthly "Interest amount" of billions of liras to be paid to the bank can be legally deducted from the holding's/company's Income and Corporate tax (Expense Ledger) at the end of the year as a

"Financing Expense."

Thus, your company's tax burden is almost spent on the investment capital (funding) of the new office you bought.