Commercial Property - Assessing Rental Income

Discussion in 'Loans & Mortgage Brokers' started by trentcroad, 11th Sep, 2020.

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  1. trentcroad

    trentcroad New Member

    Joined:
    11th Apr, 2018
    Posts:
    4
    Location:
    Perth
    Hi Guys

    With a commercial property with a net lease in place - one where the tenant pays all outgoings - would a lender assess that income at 100%?

    Or will they also look to take 70-80% to protect against vacancies for example? Even with a long lease in place.


    Cheers
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,225
    Location:
    Sydney or NSW or Australia
    From the rental perspective, which outgoings are not paid by the tenant (land tax, management, brokerage & other costs)?