Thinking of Investing in Commercial Property?
Need office space, warehousing or retail units?
Buying commercial property can feel overwhelming but you can rely on us to walk you through your options.
With a large range of commercial finance solutions available from a variety of lenders, we can help you find the right deal for your business expansion plans. Whether you’re looking for a substantial loan for a complete refit or a smaller loan for a minor upgrade, we’re here to do all the legwork on shopping for the right finance option.
Find out more about how we can make it work for you
5 Questions Smart Business Owners Ask Before Investing
#1 – Where do you see yourself in 1, 5 or 10 Years?
According to Bill Gates, “most people overestimate what they can do in one year and underestimate what they can do in ten years”. Consider if your commercial property investing will move you closer to your long-term goals and if you’re unsure, talk to our financial adviser.
#2 – Do want a long-term lease?
It’s not uncommon for commercial property leases to run for several years rather than months, which makes them a longer term investment than a residential lease. If you’re renting this property then the bonus is there’s increased continuity of rental income, but on the flip side, you may have longer vacancy periods.
#3 – Have you factored in GST?
Have you allowed for the extra 10% that will be applied to the cost of your commercial property? Goods and Services Tax (GST) will apply when you purchase a commercial property but you may be able to claim this back – talk to your accountant to see.
#4 – Will rental returns be higher in commercial property?
Returns on commercial properties can be higher, but the flip side of this is they are considered to be a higher risk asset. It’s important to make sure you have a risk protection plan in place that’ll bring you peace of mind – ask us to help protect you and your business.
#5 – Who is liable for ongoing maintenance costs?
Commercial property can bring you a higher return as, typically, the lessee pays the costs of maintenance, repairs and rates, which means bigger rental returns for you. But make sure you check the fine print in the lease agreement before you are committed.