Thriving business investment sells for $1.5M in Perth’s western suburbs
A rare industrial warehouse in the western suburbs of Perth has sold for $1.5 million in an off-market deal.
A major part of securing a piece of commercial real estate is applying for (and getting approved for) a commercial real estate loan. To best improve your chances of approval, prepare yourself and consider these five things your bank will ask for when you apply.
The bank will want to see details about any leases you are currently on, including the type of property, the length of the lease and the monthly cost. When thinking about taking out a loan, make sure you're fully paid up on your other leases and don't have any outstanding debts. It will look better on your part if you were a good lessee with a track record of making full and timely payments.
According to Commercial Real Estate Australia, if you don't plan on subleasing parts of your building to independent tenants or businesses, you'll need to prove your income and assure the bank that you have the means to pay back on your loan. This proof could come in the form of a business plan for your own use of the commercial space.
In addition to your business plan, you'll need to provide a list of subletters or tenants for the property and your own income details, such as bank statements or pay stubs.
If you happen to own any other properties, the bank will want to see statements of your deposit and current equity. Owning other properties or coming close to full ownership through equity will help you make a strong case for yourself by proving that you're responsible and capable of paying back a loan.
In addition to a description of what you intend to do with the property, you must include the asset class of the space – i.e., office, warehouse or retail. The bank will also want the address and valuation of the property to aid them in finalising the amount and terms of your loan, according to Commercial Property Guide Australia.
If you are interested in purchasing property in the Gold Coast region, contact Ray White Surfers Paradise to learn more about the process and get started today.
A rare industrial warehouse in the western suburbs of Perth has sold for $1.5 million in an off-market deal.
As interest rates show some stability, there has been a renewed confidence in commercial property investment with enquiry levels reportedly up.