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Questions, newbie to Commercial

Discussion in 'Commercial Property' started by Darlinghurst Boy, 4th Aug, 2015.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

    Joined:
    29th Jun, 2015
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    Location:
    Darlinghurst Sydney
    i have been looking at Commercial Real Estate lately.
    Shops , i see for sale at 149k plus GST ??

    So Commercial Real estate the buyer has to pay GsT on top of the sale price?
    Do you use a normal Conveyancer if i bought a shop ?
    Is there Strata fees when buying a shop on the main Rd?
    Do banks lend you 80% the same as a house in equity if i wanted equity from it?
    What sort of rent should a shop on a main rd 40m2 selling for 149k plus gst ...be paying in rent???
    Do i have to charge them rent plus GST?
    Do i still do a building and pest inspection before i buy?
     
    Last edited: 4th Aug, 2015
  2. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Location:
    Darlinghurst Sydney
    Now I just rang up my Bank.
    They said i will need 30% deposit.
    They said they want the Land Title.
    They said they will ho and value it first.
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Adelaide, SA
    nice :cool:
     
  4. Pistonbroke

    Pistonbroke Well-Known Member

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    .


    We know that you're in Darlo but they're seriously taking advantage of you if they're gonna have a ho then value it.
     
  5. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    If the seller is GST registered then there will be GST on the sale. If the purchaser is GST registered then they can claim the GST back. If there is a tenant in place and both parties are GST registered, then the GST can be waived as a going concern.

    Yes its no different to a resi sale, but you would want a solicitor to review the lease if its tenanted to ensure that its not a sham lease or otherwise dodgy so A) you are protected and B) it will be acceptable to the lender

    Depends on if it a strata or torrens title building.
    No, 65% is preferred, 70% can be done at a loaded interest rate with higher upfront fees. There are some good commercial loan deals available. Commercial lending is not subject to APRA clampdowns.
    Depends on the location and the tenant grade and the building grade. Could be leased to a tier 1 phone company or leased to Mrs Smith and her secondhand goods store. As a general rule, you would want 8% gross as a minimum to consider.

    If you (or purchasing entity eg SMSF) are GST registered then yes. If not then you give tenant an invoice with no GST applicable.

    Generally advisable if torrens title, strata can be questionable due to them only inspecting the lot. If strata then a strata report may suffice.
     
  6. Chilliblue

    Chilliblue Well-Known Member

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    DaveM has answered your question and I have posted some basic information in this section for those who are looking at getting into commercial.

    The one main piece of advise is not to assume that commercial real estate is an easy cash cow.

    Best of luck.
     
    Nrupak Shah likes this.
  7. r3ckless

    r3ckless Well-Known Member

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    Location:
    Sydney 2219
    What is the purchaser was not GST registered, and used the commericial property for owner occupied/storage reasons, and thus non deductible/nil rental income?
     
  8. Beano

    Beano Well-Known Member

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    Generally they would charge you GST ,you would have to pay the GST and not be able to claim