Although leasing real estate is far from as well known and used as leasing when buying a car, the volume of real estate financed in this way reached 12 billion last year. There are a number of reasons for grinding – and during the construction or reconstruction of the production hall and you office space (and other business buildings) – about financing by first leasing.

In the first place, for example, it is the willingness of companies to finance leases and 100% of the acquisition costs for the construction or reconstruction of real estate, and therefore it is not necessary to invest their own capital as usual in bank accounts.

Each of the leasing companies has differently set limits for the lowest funding limit. The project is interesting if the investment costs reach, for example, at least 20 million crowns.

Flexibility allows set time to be met. The average duration of lease contracts has been around 16 years in recent years. Leasing can agree on individual payment periods and the value for real estate tax is limited.

Leasing real estate also equals complete construction management

The approach of leasing companies to the whole project is completely different from the mere management of the contract. Because the leasing company is the owner of the property, it also follows the same terms as the client. An overview of the financial efficiency of construction or reconstruction, technical parameters of the project and all the first actions are performed by the first to specialize in real estate. The leasing company is based on the experience of a number of implemented projects and thanks to that I can save the clients financial resources, as, as well as prevent me from various mistakes.

Because the leasing company concludes a number of insurance contracts, it is able to offer, under suitable conditions, secured risk coverage through individual connection packages. The insurance property is closed both during the construction of the palm and after its completion. An example is the “All risk” cover for the establishment of an international insurance program. In addition, they can be negotiated and specially arranged, such as the risk of environmental damage, terrorism and insurance claims in the event of leasing (lease) contracts.

etn view of leasing real estate

From the point of view of corporate ethnicity, leasing real estate, balance sheet breeding is neutral and thus improves certain balance sheet indicators. Leasing is a so-called “off-balance financing”, in which leasing payments as rental costs are deductible from the tax base.

This is especially useful in connection with the transition of banks and other financial institutions to the rules of BASEL II. According to these rules, thanks to which banks should take into account in their risk levels the profile of the company – the applicant for the company, it is not appropriate to have fixed assets (for example, the first real estate) in the company’s balance sheet. This worsens the liquidity ratio, and this leads to a hormone rated by the company’s bank. Therefore, companies use the form of so-called leaseback, where the building is owned by the company, the sale of leases of the company and then fulfilled. In this way, the company requires real estate from fixed assets and at the same time gains free funds.

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