Commercial property questions

Viewing 7 posts - 1 through 7 (of 7 total)

hoarel
Participant
@hoarel
Join Date: 2003
Post Count: 39
February 2, 2004 - 12:40 am
Hi All,
I have a couple of commercial property questions I hope someone might be able to help with.
1. What do people consider to be outgoing expenses. The ones that the tenant would pay as part of there lease. EG power, water, rates, insurance.
2. Is there anyway to minimise the cost of GST when buying a commercial property. Any tax breaks/claims that can be made, ways to get around paying GST.
3. What do people think of this commercial deal.
Price $165,000 + GST. Building can be leased as 2 shop fronts but is currently leased to the 1 tenant @ $320 + GST per week. The owner currently pays the outgoings as the tenant is a friend.
Thanks in advance for any info.
Luke…
_se7en_
Member
@_se7en_
Join Date: 2003
Post Count: 100
February 2, 2004 - 12:49 am
Look at buying a business that is being sold with land and building.
You do not pay Gst on the purchase of the business.
The down side is that you needed to keep busines going for 3 years or you will be liable to pay GSt.
yack
Member
@yack
Join Date: 2003
Post Count: 1,206
February 2, 2004 - 4:59 am
ALARM BELLS – “tenant is a friend”
A commercial property is only worth what income you can get from it. Does the tenant have a long lease?
If the tenanat leaves and you are stuck with no income the property is not worth having.
The bank will value the property and risk according to the lease agreements.
I am presently looking at a commercial property for the first time. I have several residential properties and can use the equity in those to purchase the commercial property. I am paying the bank $550 to value the commercial property. I will get a copy of valuation as I am paying for it. If they think its ok, I may proceed.
The interest rate is determined by the risk according to the bank and they take into account the term of the lease agreement and the state of the tenant business.
hoarel
Participant
@hoarel
Join Date: 2003
Post Count: 39
February 3, 2004 - 12:46 pm
Thanks for the replies,
Could anyone recommend a website or 2 that have some general commercial property for sale so that I can get a rough idea of how this property stacks up against others.
_se7en_ what sought of businesses do you general find are sold with the building included.
Thanks
Luke….
showmethemoney
Participant
@showmethemoney-2
Join Date: 2003
Post Count: 103
February 3, 2004 - 3:49 pm
Hoarel
Generally the outgoings are paid by the tenant in a commercial lease.
As for GST, if the commercial property is purchased as “a going concern” there is no GST payable. A going concern is a property that is tenanted.
I would have thought the deal you quoted would be a going concern.
As mentioned previously the quality of the tenant and the duration of the lease are very important.
Websites try http://www.nsc.com.au, http://www.cbre.com.au, http://www.dtz.com.au, http://www.mcgees.com.au. There are others but can’t recall them.
SMTM
Administrator
Keymaster
@piadmin
Join Date: 2013
Post Count: 3,225
February 3, 2004 - 11:53 pm
The tenant and the length of the lease aren’t anywhere as important as the location.
Anyway, what do you mean by ‘commercial’ ?
Pisces
.
hoarel
Participant
@hoarel
Join Date: 2003
Post Count: 39
February 5, 2004 - 2:56 am
Hi Pisces
The property was advertised as a commercial premise. The business using it is a textile type company using it as a shop front. What do you think it should be classed as?
Luke…