I have never purchashed a commercial property but may have the opportunity to do so in the near future. Could anybody please tell me what costs are assossiated with purchasing and leasing a “work shed” type property. I beleive that the rates are paid by the tenant but have no idea apart from that. Cheers![tired]
With commercial loans/property, rule of thumb is most lenders will restrict you to a 70% LVR. (for documented loans. For Lo Doc Commercial loans be very careful – they get ugly pretty quick..)Tenant usually pays all the outgoings, rates, water, etc, in addition to the rent.
Another rule of thumb – price should be reflective of 10% rental return – and that actual return, NOT potential return..
Good luck.
theloanarranger
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