I am currently looking at buying my next property and have come across a few good commercial properties.
My questions are, do the bank look at lending money to buy a commercial property differently?
what other responsibilities do i take on as a land lord of a commercial property?
Yes bank do look at it slightly differently – Lower LVR, depending on the property type the rental income can be discounted by 50% for serviceability + not all banks will accept the commercial security – ie diff bank have diff niche when it comes to commercial.
Example:
ING commercial hates hotels while ANZ has a niche for it and would offer a competitive rate + a great LVR.
Here a list of commercial type properties + business loan as a guild
http://www.shapehomeloans.com.au/commercial-loansI terms of responsibilities as a “land lord” i would say it’s the same…take care of your tenants and they would take care of your asset.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Processes in getting the loan approved and buying a commercial property is very simliar if not the same..
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Ohs obligations.base building compliance. asbestos survey..
Danny F wrote:what other responsibilities do i take on as a land lord of a commercial property?I just want to add this:
Tenants are typically responsible for internal repairs and maintenance. However, in some cases you will also be responsible for external maintenance. This is more likely if you’re the sole occupant of a building.
Thanks everyone for the feedback.
Much appreciated.I agree with investorjohn tenants responsible for internal repairs but they do not repair and maintain the home. Some time they can not submit rent on time. Everybody have some problem to his tenants.If the tenants are good,they maintain your properties in a better way.
I think real estate has become more difficult business that main reason now more competition in market becuase this business is one of the best option that more earn .
Danny F wrote:I am currently looking at buying my next property and have come across a few good commercial properties.My questions are, do the bank look at lending money to buy a commercial property differently?
what other responsibilities do i take on as a land lord of a commercial property?
With regard to finance, there are a myriad of options for financing commercial property. There are a number of lenders whose processes are very similar to residential lenders, while others are very different e.g. in some circumstances you can obtain a commercial loan without giving personal guarantees and there are products such as true asset lends with no servicing calculation required and other products that assess servicing solely against the lease over the property. Commercial property is a great area, good luck with your investing.
Commercial investment is considered to be one of the secure investment nowadays. If you want to some extra monthly income then you may give it for the rent also. There are lot of commercial properties available and you have to choose one.
Is it possible to buy Commercial investment with smsf?
Hi there,
Yes you can and its one of the best ways to own property. To quote from http://www.superguide.com.au.
‘Business real property’, such as commercial or industrial property, or a shop, or even a farm, can be a legitimate SMSF investment in the same way that residential property can be. In terms of superannuation investments, the key difference is that, unlike residential property, a SMSF can buy business real property from fund members, and fund members (or relatives of fund members) can use that asset if they choose to do so. Any lease in place must be at market rent and in line with the terms and conditions of a typical commercial lease.
Business real property can also be transferred as an in specie (non-cash) contribution, subject to contributions caps, and any small business retirement exemptions available (if applicable).
Any capital gains tax payable on the transfer is a tax bill for the individuals who originally owned the asset rather than the SMSF, although, with tax advice, there may be opportunities to reduce or eliminate that tax.
In some states, stamp duty will be payable on such a transaction. You need to check with your State Revenue Office whether stamp duty is applicable.
Regards
David
One of the responsibilities of being a landlord is monitoring tenants and their comfort on the property that they are renting…
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