All Topics / Commercial Property / Buying a Commercial Property -Strata Title
Hi,
I’m looking at buying a commercial property and it’s Strata Titled. What are the pitfalls? Is there anything I should be aware of?
Many Thanks.Need more info….A bit vague
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi QM.
What kind of businesses are in the strata plan ?
How many? Who manages it? Who controls it ? What state of Australia ?
This was posted a few months ago QM, are you still interested or has this opportunity ceased for you ?
I’ve had experience owning a commercial property in a strata plan which I’d be happy to add here if you were interested.
Cheers
thecrest- This reply was modified 10 years, 5 months ago by thecrest.
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi QM
Is the property for investment or occupation?
If its for investment the lease covenants would be the most critical aspect? ie strength of tenant, what security is in place, remaining lease term before expiry, who pays outgoings? And almost forgot, how much rent are the obliged to pay?
The above aspects, inparticulary rent and lease term will also be important for debt funding. Commercial property lending isn’t like residential property in that a lender will like/need to see sufficient remaining lease term beyond the loan term.
Cheers
RhysRhys Adams
http://www.redcommercial.com.au/
Email Me | Phone MeCommercial Property and Construction Finance Specialist
I am totally agree with above statement If its for investment the lease covenants would be the most critical aspect? ie strength of tenant, what security is in place, remaining lease term before expiry, who pays outgoings?
However you need to think about it again.limited upside with strata
Andrew Pitt
Enhancing Commercial Property to Empower Business
Hi Andrew,
Will any of the following add more upside?1. further subdivide a large enough strata
2. consolidate multiple adjoining smaller strataIs buying strata in general a poor investment choice?
Thanks.
FXDProperty, an Investment in Life
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