All Topics / Finance / Profit rent on commercial property

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  • Profile photo of LouiLoui
    Participant
    @loui80
    Join Date: 2016
    Post Count: 13
    December 7, 2016 - 7:38 pm

    Hi guys,

    Quick one. If the rental on my commercial retail property is higher than what the market indicates, will the bank rest off the valuation figure based on the profit rental made or purely on the raw method of what rental the property should generate on the property? This could be a difference of 150k for me based on my sums.

    Thanks
    Loui

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    December 8, 2016 - 8:27 am

    Loui will depend on the Terms of the Tenancy and who it is.

    Decent tenant will probably reflect in decent valuation.

    As commercial servicing is totally different to a resi loan the calculation is not the same.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010
    December 8, 2016 - 9:55 pm

    For valuation purposes valuers will look at how the rental figure compares against the greater market, so they can very well discount the estimate accordingly.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

Viewing 3 posts - 1 through 3 (of 3 total)

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