7 Steps to your Commercial Property Purchase, using Equity in your Property

Leveraging the equity in your property requires careful planning and strategic decision-making at every step of the way.

Step 1 – Check Your Equity:

‍Calculate your home's value, subtract the lender's margin and your loan balance to determine available equity.

Step 2 – Do Your Homework:

‍Research your desired commercial property to minimise investment risk. Know what you want to buy to minimise investment risk, know where you want to buy and what sort of return you want for your property (remember the higher the return the higher the risk)

Step 3 – Double Check Your Borrowing Power:

‍Assess your borrowing capacity based on targeted returns.

Step 4 – Get Your Buying and Borrowing Structure Right:

‍Consult with an accountant taking into consideration GST, gearing, and capital gains implications along with any ongoing reporting obligations.

Step 5 – Get a Good Lawyer:

‍Get a real good one! An accredited or experienced commercial real estate lawyer can successfully navigate lease terms and risks as well as impart some seriously good advice

Step 6 – Engage a Professional Property Manager:

‍Hire a specialist commercial property manager to oversee rent collection, expense management, maintenance, and lease renewal.

Step 7 – Finalise the Purchase:

Armed with the backing of experts, its time to get your loan approved and finalise the purchase. That’s where we come in, finding the best and most affordable loan for your situation.

From assessing your equity and defining investment goals to engaging with legal and financial experts, each step is vital in ensuring a successful commercial property purchase. Whether you're a seasoned investor or new to the game, these steps offer invaluable insights to guide you towards your commercial property goals.