All Topics / The Treasure Chest / Finally an 11sec property – its commercial help

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  • Profile photo of hgwellshgwells
    Member
    @hgwells
    Join Date: 2003
    Post Count: 127
    September 11, 2003 - 8:27 am

    Ok – after months of searching i’ve found a +ve property[:D], but its commercial and i’ve always bought residential. Its 159,000 renting at 330pw and tenant wishes to stay on for 12 months. Building only a few years old 100m2 with shower toilet aircon kitchenette and parking provided. What is the difference in buying commercial to residential and what pitfalls should I look out for? HG

    Profile photo of --Brett--–Brett–
    Participant
    @–brett–
    Join Date: 2003
    Post Count: 20
    September 11, 2003 - 9:06 am

    check what LVR you can get, commercial loans are generally 70% max, some go to 75%.

    Profile photo of caddy222caddy222
    Participant
    @caddy222
    Join Date: 2003
    Post Count: 24
    September 11, 2003 - 11:00 am

    Don’t forget that commericals are subject to GST on the purchase price. I know you get back and all …eventually…but you have to find it in the first place.
    Caddy

    Profile photo of darrenbdarrenb
    Member
    @darrenb
    Join Date: 2002
    Post Count: 71
    September 11, 2003 - 11:05 am

    It will be GST free if it is a going concern (currently tenanted).

    Profile photo of MJKMJK
    Member
    @mjk
    Join Date: 2003
    Post Count: 157
    September 11, 2003 - 10:47 pm

    Speak to your mortgage people about the,
    LVR
    Interest rate
    If they are prepred to fund it.
    The lease.
    You will discover a lot about commercial from talking to financiers.
    The return looks OK. You just have to assess the risk.

    MJK

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