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Property sold as "going concern"?

Discussion in 'General Property Chat' started by Daniel007, 11th Nov, 2015.

  1. Daniel007

    Daniel007 Well-Known Member

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    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
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    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.
     
  3. York

    York Finance Broker Business Member

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    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?
     
  4. York

    York Finance Broker Business Member

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    Or does it look like a house among other houses but actually is a mixed use zoning with a business operating inside?
     
  5. Daniel007

    Daniel007 Well-Known Member

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    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.
     
  6. wogitalia

    wogitalia Well-Known Member

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    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.
     
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It might be the agent is using the wrong terminology and just means that the tenants stay, I reckon.
     
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  8. Daniel007

    Daniel007 Well-Known Member

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    Nope, at least 30 years old.
     
  9. wogitalia

    wogitalia Well-Known Member

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

    hobo Well-Known Member

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

    See Change Timing Lord Premium Member

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    Agree with Jess

    Different states use different wording .

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

    Cliff
     
  12. York

    York Finance Broker Business Member

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    Yep...agree with you Jess.
     
  13. dabbler

    dabbler Well-Known Member

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    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.
     
  14. Azazel

    Azazel Well-Known Member

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    A growing concern for the current owners?
     
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  15. dabbler

    dabbler Well-Known Member

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    lol....yes could be, or growing concern for agent to sell :)
     
  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    The growing going concern

    [​IMG]
     
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  17. Azazel

    Azazel Well-Known Member

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    You would need that crop just to pay the power bills: power.jpg :
     
  18. JDP1

    JDP1 Well-Known Member

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    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
     
  19. York

    York Finance Broker Business Member

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    images (7).jpg

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

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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