What kind of service station should I buy?

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Otto Dargan
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Re: What kind of service station should I buy?

Post by Otto Dargan »

Hi and welcome to the forums daggy.

If you decide to purchase a service station and enter into a franchise model with a well-established company, then it may be easier for you to get approval on your loan.

This is because the company that owns the franchise is responsible for all tanks, pumps, and line work. The company is also responsible for ensuring that the station is legally safe for redevelopment. This means that since the franchise company bears the cost, the lender feels more secure while lending to you.

Moreover, a flagship brand may also support you in marketing, setting up your shop, and shipping fuel if you enter into a franchise.

However, this does not mean that you should not buy an independent service station. The benefit of going independent is that you do not have to answer to a larger company. You may create the business you want and keep the profit you make all to yourself.

Cheers,
Otto
Otto Dargan
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P | 1300 889 743
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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What kind of service station should I buy?

Post by Otto Dargan »

Hi daggy,

Purchasing an older petrol station may be risky because of the possibility of contamination risks. You may have to spend thousands of dollars just to bring it to a good condition.

However, purchasing an older service station may have its own advantages. You may not need to go through the hassle of getting a new permit for the development of a service station.

Moreover, many customers will be familiar with the location of an established petrol station whereas it may take time for customers to learn about a new one.

You may have to apply for a no doc commercial loan because you are not currently employed.

If you would like to know more then you can have a look at our website. You can also call us on 1300 889 743 or fill in our free assessment form to get in touch with one of our expert brokers who can help you find a suitable lender.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What kind of service station should I buy?

Post by Otto Dargan »

Hi diemen,

You may need environmental authority from your local council, however, it depends on the state in which you are operating. Generally speaking, a licence is an essential requirement in undertaking any environmentally relevant activity.

You may also have to organise a site assessment report with your state’s Environment Protection Authority before you are allowed to operate a service station.

Since you are looking into other investment options as well, you may be interested in buying a pub or restaurant.

You can check out our website if you want to find out more.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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