smart mortgage corp logo text
Get a free assessment
Get stuck with your loan application? Drop us a line and get it all solved.
What are you looking to?
purchase a property
refinance existing loans
build a property
commercial loan
next
Let's talk to a smart mortgage broker brisbane
loading...

Commercial Property Investment & Financing

Investing in commercial property can be a highly rewarding strategy, offering strong rental returns, long-term capital growth, and portfolio diversification. Whether you're purchasing an office building, retail space, industrial warehouse, or mixed-use development, securing the right financing is crucial to maximizing your investment potential.

Commercial Property Investment & Financing

Why Invest in Commercial Property

Higher Rental Yields

Commercial properties often offer higher rental returns compared to residential properties, with net yields ranging from 5% to 10% depending on the asset type and location.

Long-Term Lease Agreements

Commercial tenants typically sign longer leases (3-10 years), providing stable and predictable income compared to residential tenancies

Tenants Cover Outgoings

Unlike residential properties, many commercial leases are net leases, meaning tenants are responsible for paying expenses such as council rates, insurance, and maintenance.

Diversification & Capital Growth

Investing in commercial property can diversify your portfolio, reducing reliance on residential markets and offering capital appreciation over time.

Types of Commercial Property Investments

Office Buildings

- Suitable for businesses seeking professional workspaces. - Demand fluctuates based on economic conditions and work-from-home trends. - Premium locations attract high-quality corporate tenants.

Retail Properties (Shops, Shopping Centers, Showrooms)

- Includes standalone shops, shopping centers, and large retail outlets. - Success is driven by foot traffic, visibility, and consumer demand. - Long leases with major retail brands offer investment stability.

Industrial & Warehousing

- Includes factories, warehouses, logistics hubs, and manufacturing plants. - High demand due to growth in e-commerce and logistics. - Typically lower maintenance and longer lease terms.

Mixed-Use Developments

- Combines residential, commercial, and retail in one project. - Offers diverse income streams and reduces reliance on a single tenant type. - Common in high-growth urban areas.

How Commercial Property Loans Work

Financing a commercial property is different from residential home loans, with unique lending criteria and deposit requirements. Key Features of Commercial Property Loans:

Loan-to-Value Ratio (LVR)

- Banks typically lend 65-75% of the property value, meaning investors need a 25-35% deposit. - Higher LVRs (up to 80%) may be available for stronger assets or owner-occupied properties.

Loan Terms & Repayments

- Loan terms range from 5 to 30 years, with interest-only or principal & interest options. - Interest rates vary based on risk, asset type, and borrower profile.

Security & Collateral

- Loans are secured against the commercial property itself. - Some lenders may require additional security or personal guarantees.

Tenant Strength & Lease Terms

- Lenders assess the tenant’s financial stability and lease duration. - Long-term leases with blue-chip tenants can improve borrowing power.

Owner-Occupied vs. Investment Loans

Owner-Occupied Commercial Loans

- Designed for businesses purchasing their own premises. - Can secure higher LVRs (up to 80%) and better loan terms. - Allows businesses to build equity instead of renting.

Investment Commercial Loans

- For investors looking to generate rental income and capital growth. - Lenders focus on property location, tenant strength, and lease agreements. - Typically lower LVRs (65-75%) and stricter lending criteria.

Testimonial
What our customer says about us
Testimonial
What our customer says about us
I have been with Ivy for 10 years. Ivy always exceeds my expectation and makes me feel my needs are a priority. Her professionalism and knowledge are of an extremely high standard and the communication and efficiency throughout the whole process was above and beyond. More than happy with the service from Ivy and Smart Mortgage and would not hesitate to recommend their services to others.
Yin Zhu
Onsite Manager of Rosewood Heights
My family uses Smart Mortgage to assist with the purchase of our home, investment, properties and commercial lending. Ben Ou, the Manager Director and his team are very experience and have always made our loan processes easy. I would highly recommend Smart Mortgage to my friends and clients who require finance for their properties. I am confident that the Smart Mortgage’s team will look after the customer’s best interests.
Simon Au
RE/MAX Number 1 Sales Team
Having worked with Angela for over 10 years, she has always been very professional and always puts my needs and interests first. Her work ethic is excellent and I trust in her abilities to always provide me with honest advice to help me reach my financial goals. My husband and I have several home and commercial properties with Smart Mortgage and I would highly recommend them to anyone who is looking for a company who truly puts your interests first.
Anh Pham
Manager at Queensland Soy Factory
I have dealt with Smart Mortgage for many years. There have been a few properties I have bought and sold over this period. Angela Duong is the person I have dealt with for my home loans. I have known Angela for over 10 years and have always found her and the staff at Smart Mortgage to provide outstanding services. Buying and selling houses are some of the most stressful things a person can go through in life. Knowing that Smart Mortgage are very professional and committed to the complete process from start to finish is a great relief.
Anne Poulton
Property Buyer
contact us
Having anything in mind? Get more information about your tailored loan.
You might have lots of questions to ask. That's okay. Drop us a line and we will get them all sorted.
I want to know...
the lowest rate I can get
how much I can cash out
should I fix my rate now
how much deposit do I need
Submit