With new commercial property developments becoming more attractive for investors and owner occupiers, lenders are increasingly more keen to finance any worthwhile commercial property transaction.
The property could be any of the following :-
- Industrial/warehouse
- Offices
- Retail shops with residence
- Boarding houses
- Childcare Buildings
- Medical buildingsLease Doc : This is a loan option where a lender may provide funding based on the lease of a commercial property.
However, loan terms and conditions may apply. Loan documentation is not onerous when compared to a fully documented commercial application.
The Victorian State Government recently abolished the stamp duty for commercial and industrial properties, replacing it with a Property Tax.
From 1st July 2024, commercial and industrial properties will transition to the new Property Tax system as they are sold. The new system features a new annual property tax that is payable for 10 years after the transition date.
This arrangement however, will not apply to the current owner, or any other commercial or industrial property being purchased by the middle of 2024.
The Annual Property Tax, which will replace the stamp duty, is set at a flat rate of 1 percent of the property’s unimproved land value.
In addition, the government will also reduce the tax-free threshold for land tax from $300,000 to $50,000 from 1st January 2024.
Owners who pay land tax will also incur a temporary fixed rate charge commencing at $500 for properties up to $100,000 in value, and $975 for owners up to $300,000 in value.
Contact Paul at Flakus & Associates to discuss your financial position or any other future commercial property finance requirements you may be considering to explore and discover your options.