Commercial Property Loans
Commercial Property loans cover a wide range of products from
- Owner occupiers and property investors for retail, office and industrial
- Property development loans for retail and industrial units
- Refinancing of commercial property loans
As a property investor commercial loans work in much the same way as residential home loans, with the same loan features like fixed or variable, interest only, line of credit or offset facility. However commercial property investment is considered a high risk asset and usually, you will need a larger deposit, at least 30% of the purchase price.
Investment in Commercial Property has some advantages over residential property investment.
- Commercial Properties provide greater certainty in rental income with leasing agreements over longer terms.
- Movement in the Consumer Price Index (CPI) is often used as a method of reviewing rent in a commercial lease.
- As a property investor when you purchase a commercial property Goods and Services Tax (GST) applies on the purchase price. However you can claim back the GST as an ‘input tax credit’ against the GST charged on the property’s rent.
- With a commercial property lease the lessee is responsible for the costs of maintenance, rates and repairs. This means a commercial lease offers higher rental income profits when compared to residential property.