Property sold as "going concern"?

Hey everyone,

I was having a chat to an agent and they mentioned that the property would be sold as a going concern.

What exactly does this mean and what are the reasons behind it?

I found a thread on somersoft that mentioned gst is not payable, however the replies were in response to a commercial property. The property in question is residential, does this change the outcome?

Cheers

 

I might be more concerned that it was going.

Unless there's a business associated with the premises and owned by an entity which is registered for gst, subject to a commercial lease etc then it wouldn't qualify as a going concern.

 

Are you 100% sure this was a residential property? Can you describe the property ? Freestanding house? Apartment in a complex? Are there any signs of commercial activity directly nearby?

 

Or does it look like a house among other houses but actually is a mixed use zoning with a business operating inside?

 

It's just a duplex in a purely residential area, no signs of commercial or mixed use.

Both sides are currently tenanted, i assume for residential occupancy but i have asked for a copy of the lease agreements. I don't think it would be rented for mixed use though, because the rent incomes are spot on to other comparable duplexes in the area.

 

It is a new property?

It seems odd, selling as a going concern relates to commercial property/businesses and is done to avoid the GST on the sale.

 

It might be the agent is using the wrong terminology and just means that the tenants stay, I reckon.

 

Nope, at least 30 years old.

 

I've got nothing, Jess' suggestion is probably as likely as anything.

 

@Jess Peletier might have hit the nail on the head - perhaps the agent doesn't realise the standard usage/implications of that phrase...?

 

Agree with Jess

Different states use different wording .

For me implies that the tenants stay and you don't get vacant possession

Cliff

 

Yep...agree with you Jess.

 

Why ask us what they meant, ask them directly ?

If I were to guess, I would say it is being sold as is, with any/all cosmetic and other problems etc if tenanted maybe what Jess says.

 

A growing concern for the current owners?

 

lol....yes could be, or growing concern for agent to sell

 

The growing going concern

 

You would need that crop just to pay the power bills: :

 

In the financial world, going concern means the entity will not dissolve. I'd suspect the same here - that the property is not a pure knock down job as the only option

 

It's ok. It has solar power!!! Plenty of it.

 

Maybe it has a large overgrown yard and the agent has a mowing concern?