Home – New Forums Starting your journey Looking for advise re buying commercial property

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  • #980003
    gem0075
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    I have been running an online store for a few years now, and am making a nice little wage. However, my house is now starting to become overrun with stock. I have found a nice little commercial property which is not too expensive.

    So now my thoughts are, should I purchase, and move stock out of my house? The other pro would be that I could then have customers visit for pick up orders etc.

    The downside, is that I will loose some of my flexibility re working from home and having everything right here. Plus of course the added expenses with running my own property – however, that would lesson my tax obligations. My other option is to build a carport at home, so I can better organise all of my stock in the garage space.

    I would love any tips from anyone who has been in a similar situation or has any other great ideas?! Thanks!

    #1119072
    Kennethti
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    Have you considered leasing commercial warehouse space? There are also some firms that are specialised at handling storage and shipping for you, so that all you need to do is tell the firm where things need to go – it’s called freight forwarding.

    #1119073
    Jodie McLeod
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    Hi Gem0075,

    Just to let you know we’ve posted a callout on our Facebook page to try and source some more advice for your question – so hopefully that will draw some people with experience in buying/leasing commercial properties over this way! You can also keep an eye on comments here.

    Cheers

    jodie

    #1119074
    gem0075
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    Oh thank you Jodie, I will be watching.

    Kenneth, I have listened to some companies who do the freight etc, but it doesn’t suit what I do. For what I am selling (items and price wise) it suits me to do that myself. I suppose for leasing purposes, I just wouldn’t want to be spending too much money if I went down that track.

    #1119075
    bluepenguin
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    Just a random thought:

    Have you thought of getting hold of a shipping container and converting it to suit your needs?

    #1119076
    gem0075
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    bluepenguin, I have thought about that, but don’t really have the space on my house block for something like that. The best alternative for that would be a carport at the front (on my current driveway) to free up the garage.

    #1119077
    Cjay
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    gem0075, post: 133868 wrote:
    bluepenguin, I have thought about that, but don’t really have the space on my house block for something like that. The best alternative for that would be a carport at the front (on my current driveway) to free up the garage.

    Also consider the costs involved with purchasing. Commercial loans do require much larger deposits compared to residential lending and at higher rates. Type of security, business income etc. can also play a huge role in whether it is possible or not to purchase a property that you want.

    In saying that, there are a number of businesses whose directors will purchase the commercial property through a Self Managed Super Fund and then rent to the business. Guaranteed return for their super, don’t have to worry about landlord/tenant problems, potentially don’t have to take a large amount of capital from the business to purchase.

    This enters the realm of finance advice and taxation, to which it would be strongly advisable to seek professional advice.

    #1119078
    gem0075
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    Thank you Cjay.. that kind of thing crossed my mind too, but as it is not my area of expertise, definitely something to cross by my accountant if it is the road I want to venture down.

    #1119079
    Divert To Mobile
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    Hi Gem,

    I like the idea. You said it was priced well, and that business is growing. Take the plunge. Its hard to lose on real estate.

    Steve

    #1119080
    Zava Design
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    I like the carport idea myself. It sounds like something that wouldn’t be too expensive, and provides that “small leap” before the big jump to own your own commercial property. It certainly doesn’t rule out the possibility of buying/leasing commercial property down the track, but gives you a little more time to see if the business continues to grow.

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