Case Study – Commercial Office Purchase Made Easy

Commercial Office Purchase – Finance Made Easy

Background

James and Brian were referred to First Point Group by a friend.  They run an office based business, and wanted to purchase the premises they were currently leasing. The office was in a high quality eastern suburbs of Melbourne location. The purchase would enable them to own the premises and effectively pay rent to themselves.

Keys to buying a Commercial Premises

First Point Group takes pride in being able to offer our clients solutions for all their finance needs, no matter how simple or complex.

The clients had considered multiple options with assistance from their Accountants and Financial Advisers, including the potential to purchase the office as a superannuation investment. Their advisers recommended that they purchase outside of superannuation via a Unit Trust structure.

The Challenges

James and Brian had an existing Business Bank ‘relationship’, however they felt that their Banker did not understand their business. Their Banker had also changed several times over the past 5 years. James and Brian were interested to know what finance options were available from a range of competitive commercial lenders.

Due to other commitments, the clients required a higher than usual Loan to Value Ratio (LVR) of 75%. Many mainstream commercial property lenders / banks prefer 60-65% LVR, which forces the business / investors to contribute a lot more capital upfront.

The Solution

First Point Group was able to arrange a Commercial loan pre-approval to enable James and Brian to negotiate on the purchase price, rather than negotiate without finance approval. This pre approval was incredibly valuable as James and Brian were able to enter negotiations with complete confidence. We also secured a loan at 75% LVR with a very competitive interest rate and fee structure.

James and Brian intend to also try and secure the adjoining office space over time. First Point Group are assisting them to understand their potential borrowing capacity.

If you would like to talk to the team regarding your next purchase, review or refinance whether you are seeking residential, commercial or asset finance, please contact us to find out how we can help you.

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