Commercial Property Loans Versus Residential Property Loans
- A commercial property’s value may be less stable over the long term, as they are often dependent on uncontrollable factors such as economic conditions and the overall level of business activity.
- Commercial properties tend to experience higher tenant vacancy rates than residential properties. The income they generate is therefore less secure.
- Commercial properties can be more expensive to buy, maintain or and/or upgrade. It’s also important to understand that buying a commercial property requires you to pay 10% GST (a cost that you don’t incur when buying residential property in Australia, as they are exempt from GST).
You’ll be exempt from capital gains tax (CGT) if you sell your commercial property as part of selling a business as a going concern.
How We Can Help
Choosing the most appropriate lender and commercial property development finance option for your business is a crucial financial decision.
However, it’s often difficult to find and compare commercial property loan information on the websites of lenders. That’s because key information like commercial property finance interest rates and other commercial property loan terms and conditions are often negotiable. They depend on factors such as the type of business that requires the loan, the type of commercial property being bought, the location and the amount of collateral security that can be provided.
At ARG Finance, our experienced team of commercial property finance brokers can help you to find the right commercial property loan product. We’ll take the time to understand your business’ needs before recommending a lender and loan for you.
Contact us today to find out how we can help your business. You can also use our commercial finance calculator to determine your commercial property finance rates and repayments.
Frequently Asked Questions
How can I finance commercial property with no money down?
Financing commercial property with no money down typically involves creative strategies like seller financing or leasing. In seller financing, the property owner provides the loan, eliminating the need for a down payment. Leasing allows you to lease property with an option to buy later, potentially using rental income to fund the purchase. Each option comes with its own considerations and risks.