Looking to borrow sub 500K to buy commercial property. Can anyone recommend the loan providers?
Looked at ANZ but their annual fees ($750) and establishment fees ($2000-$3000).
Looking for any recommendations in that category.
Who to Reach out for Commercial Property Loan?
[Deactivated] on 03/07/2023 - 11:16
Last edited 03/07/2023 - 11:17
Last edited 03/07/2023 - 11:17
Comments
Probably start with your current finance provider / bank. Use that relationship as your starting point and then see if others would be better.
sub 500K to buy commercial property
Sounds like a risky small property. Can you provide more detail?
Might be best to self fund or sophisticated investors. Else, financial institutions will charge exorbitant rates, or avoid due to high risk, not worthwhile.
Just a retail shop. That is market rate.
Just a retail shop. That is market rate.
Log into the wrong account ?…..
I'm with ING https://broker.ing.com.au/commercial-loans.html though I went through a broker. Suncorp had a similar commercial loan, they no longer publish rates but it was roughly the same as ING.
Even though it says minimum loan amount 500k, I was able to borrow less than that.
thanks a lot
Have you considered a REIT?
Why not rent the property, do you plan on being in business for a long time? Or hope that the property will go up in value when it comes time to sell?
Perhaps OP's business is owning commercial property for rent?
Ooo, that's a good business. His tenants work hard to turn the location into a good business, increasing foot traffic, adding value to the location, increasing rents later on. Of course if the tenants own business sucks that won't add any value to the location.
That is how the businesses work.
If you run a cafe, you focus on the cafe business.
If you run a homewares shop, you focus on the homewares business.
If you run a commercial property business, you focus on the property business.…if the tenants own business sucks that won't add any value to the location.
As long as the tenant pays the rent, is doesn't matter.
@GG57: Surely you would prefer the cafe becomes very popular and attracts thousands of customers daily. When the lease is up suddenly you own a very popular location with a lot of foot traffic, when five years earlier that location was dead. You can charge a lot more because other restauranteurs would be happy to take over that location now. I guess if business is doing so well for the cafe they will be more able to pay more rent so it doesn't really matter to them other than having less profits at the end of every week. But for the landlord they would rather own a popular location than a dead one because they can charge more rent, yeah?
@JIMB0: Nah I love it. Why shouldn't most of the wealth in the country be tied up in a property bubble. Other countries have their wealth going into science and industry, but here in Australia we prefer to put self interest first.
https://www.finder.com.au/commercial-loans
Or just check the major banks and look at their rates, see how they hold up.