Hi all, im just stating out and buying a commercial property positivly geared appeals to me as im leaving the Australia for a few years and i would like to get a long term tennant for 5 to 10 years. can someone with experience please give me an idea of the costs involved in purchasing a commercial and also any on going costs that i would have. i was told that the mortgage application fees can run into thousands, why would this be so high.
With commercial property, you usually can only borrow 70% from the bank, so you have to stump up large deposits (round 30%).
If your looking for a secure tennant then you should probably buy something close to the city as it’s easier to get another tennant if they move out.
Mortgage application fees might be higher because banks may have to spend more time on these applications (assesor, then try to gague the demand the building has in it’s present locaton, etc).
Rgds.
Lucifer_auOriginally posted by Lucifer_au:With commercial property, you usually can only borrow 70% from the bank, so you have to stump up large deposits (round 30%).
not necesarily. You may be able to borrow 80% – in fact on one of my deals, I borrowed 90% – it’s all in a contract.
Mortgage fees were nothing for us as the bank waved the fees just to get us to become their client.
Commercial properties in my view are always greater if you get the deal right as all the rates are paid by your tenant.
Kind regards,
George.
P.S: hey pgrim, where are you off to?I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
George,
I was told that when “residential property is flat commerical usually starts flying….” has this been your experience????We own an industrial property we purchased a few years ago and prices are now moving and also easier now to rent.
cheers.[biggrin]Originally posted by Marisa:George,
I was told that when “residential property is flat commerical usually starts flying….” has this been your experience????Hi Marisa,
To my experience, I haven’t been in an era where residential is flat – or at least I wasn’t aware of it or what was happening. Since I began investing in property, it’s only been going up, residential and commercial – but anything can happen.
Best Regards,
George.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
thanks for the replys guys. im getting married to an irish princess half way through next year and i want to make use of my salary before before we go and live over there, (to be closer to her family and support group!) we all know what that means!!
i dont have much of a deposit so the high deposit worries me with commercial, but im going to look into it moreOriginally posted by pgrim:im getting married to an irish princess half way through next year…
congratulations mate [thumbsup2]- all the best for your wedding and the future[strum]
I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
To begin, I do not own commerical properties.
I do know that banks are not always the best place to head for lending on those. There are brokers out there willing to deal without large deposits as someone else said.Commercial properties are generally higher risk than residential
As with most things, developing a relationship with or a network of people is important and leads in directions that opens doors.
I just enquired about a loan for commercial premises the bank offered 65%, but other contacts have offered stand alone deals with better prospects. I am just working on serviceability
cheers
elves
” a blind man may see what a sighted man may not”
well in my searches into commercial property ive come across “Gardner And Lang” property syndicates. has anyone heard of them, they are based in melbourne.
Gardner and Lang have been around for a while although I personally have not had dealings with them.
Try reading a book titled “How investing in Commercial Property really works” by Martin Roth and Chris Lang.
Furthermore the majority of fulltime property investors will prefer commercial to residential for investing. Residential is generally a stepping stone to commercial property investment. While there can be higher risk, the options and profits can be huge
Cheers
Jeffcheers jeff ill have a look for the book. Ive had residential property overseas and had many problems with tennants, im not comfortable renting to residential tennants while im not in the country so i pretty sure commercial is the way for me.
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