Mortgage or leasing.

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Mortgage or leasing.

For 10 months 2006 of rate of a rent on uninhabited premises in capital have grown more than on 30 %. Realtors predict, that such rates of growth of rent rates will be kept still at least two years. Meanwhile an idea to get a uninhabited premise in property seldom visits tenants though today they have an opportunity to make it, not withdrawing greater money from business. More truly, such opportunities two - mortgage and leasing.
Leasing of commercial real estate while is less popular in domestic businessmen, than rent. Principal causes of this phenomenon are covered, in opinion of general director of " Leasing company URALSIB " Dmitry Shitsle, in insufficient knowledge of domestic businessmen of this product and wide prevalence of schemes of indirect sales of objects of real estate. Though advantages of leasing before rent for it are obvious.

" Many companies often collide with overestimated cost of rent of premises. Contract of rent frequently consist for term of no more year that does unjustified financial investments of tenants in furnish of office premises on own design-projects, - gives reason for Dmitry Shitsle. - it is obvious, probability is small, that tenant subsequently can redeem used real estate in property. Leasing enables without significant lumpsum financial expenses to receive in using real estate with subsequent right of repayment. For this reason recently interest to leasing real estate starts to grow ".

What else pluss at leasing? As Sergey Konanyhin, lawyer Renaissance Realty explains, frequently leasing is unique tool providing an opportunity of purchase of expensive commercial real estate. " If under mortgage on credit it is possible to receive no more than 75 % from cost of real estate in leasing this figure can reach 90 %, - it marks. - besides at leasing real estate carries over only after all leasing payments. Therefore there is an opportunity to save on tax to property and profit tax. Leasing is much more safe, than bank credit, from point of view of financing organization as subject of leasing is unconditional maintenance of transaction ".

Thus, leasing has powerful advantages not only before rent, but also before mortgage of commercial real estate, especially for enterprises of small and average business. As, as director of department of commercial real estate NAI Global Russia Vladimir Zhuravlyov speaks, " mortgage of commercial real estate while is presumed to themselves only by large companies: high requirements of banks to a financial condition of borrowers do not allow enterprises of small and average business to receive credit ". For large companies, in its opinion, mortgage practically is always more favourable, than a usual way of purchase of objects as, involving credit, company should not withdraw own capital from a turn.

" However even it is complex to large companies to receive bank crediting under purchase of a building for own using as in this case incomes of purchase of object are complex for predicting and for bank risks on non receipt of payments increase, - Vladimir Zhuravlyov continues. - it is much easier to issue credit for purchase of real estate with investment purpose - banks go on such transactions more willingly in connection with an opportunity more precisely to count profitableness ".

According to director of center of retail crediting bank " GLOBEKS " of Oleg Semkicheva, today many commercial banks render services of mortgage of commercial real estate. As borrowers various companies act, but in majority it is large and average product companies. " For mortgage of commercial real estate it is desirable, that a subject of mortgage were premises which can bring high income or possessing high liquidity ", - it speaks.

In other words, banks make demands to a premise on security of which give out credit, and these requirements far not always coincide with requirements of borrower. " From list of premises which correspond to requirements of banks, emergency objects or not last technical inventory and state registration at once are excluded, - Vladimir Zhuravlyov lists. - Besides mortgage in an ideal should represent profitable and stable business - for example, office building of a class " And ", having tenants. object is less liquid, it is more complex to expose companies it as mortgage and to receive credit ".

It is even more complex to find object which is on sale under scheme arranging creditor in market. " Banks while reluctantly finance purchase of commercial real estate, - Edward Animaev, adviser of department of commercial real estate of company Paul's Yard is distressed. - Basic problem consists that secondary market of commercial real estate has " grey " scheme of sales. same concerns and to a part of primary market. Also in many cases banks are afraid of falling market of commercial real estate ".

Demand for mortgage of commercial real estate, according to Vladimir Zhuravlyov, is high among large companies in which actives there are liquid buildings, capable to interest banks as mortgage, however in Russian market while it is a little such players. Similar transactions, as a rule, are not accessible to enterprises of small and average business, as it happens difficultly documentary to prove to bank, that their business is stable. " companies with rather high risks cannot receive hypothecary credit whereas in transactions with attraction of leasing by official borrower leasing company which bears financial responsibility under credit is, - it speaks. - thus unlike business deal at leasing additional maintenance from client it is not required ".

Is at leasing and other advantages before mortgage. " First, it is accelerated amortization and an opportunity of reference of leasing payments on cost price, and secondly, leasing of real estate as service, is more accessible, than crediting on security of got real estate. Bank, giving out hypothecary credit, as a rule, applies higher discount to an estimation of real estate - in connection with that object will be property of client. leasing company depending on potential client can apply lower discount to an estimation since object of real estate will be property of owner of leasing, - Peter Vanjukov, director of department of regional development of company " GLAVLIZING " lists. - Besides banks reluctantly grant a loan for term of more than three years, and at leasing probably conclusion of contract for term of 5-7 years, and on occassion till 10 years ".

Advantages of leasing to sellers of commercial real estate are even more obvious. In fact seller of real estate receives 100 % of a project cost without delays. And number of potential buyers at such scheme essentially increases.

Source: Info Cash Loan (22.12.2006)

Information.