Hi and welcome to the forums salted,
If you’re looking to get a loan to buy a factory then you may need to present a strong case to the lender with details of your business and investment plans depending on the purpose of the purchase.
By presenting an acceptable case to the lender, you may be able to borrow up to 80% of the property price (freehold) with a maximum loan term of 20 years. Loans that are over $5,000,000 are assessed on a case by case basis.
Interest only payments as well as principal and interest (P&I) payments are available. As a general rule, the maximum term for interest only payments is 5 years. You may be able to get certain interest rate discounts depending on which lender you apply with and how strong your application is. Low doc options are also available.
However, it is important to note that not all commercial properties are valued in the same way. Some factories may be classified as mixed use properties, depending on the property’s adaptability in being used for either industrial, commercial or residential purposes.
Additionally, local governments may regularly review zoning based on factors such as gentrification (buying and renovating of houses and stores in deteriorated urban neighbourhoods). Lenders may consider these factors when assessing your application.
Location is also an important factor to consider whether you’re buying or using the property to run a business. You may therefore need to make sure that the property is close to good infrastructures and facilities, such as highways, motorways, rail lines and shipping yards.
Prime locations may include factories located in inner-city locations or central business districts (CBDs). You may want to stay away from factories that are located too far outside of city, with tenants usually looking to be near the city and its services.
Cheers,
Otto
Buying my first factory
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Buying my first factory
Hi salted,
Factory zoning generally falls under industrial zoning. However, the kind of work that can be undertaken in these zones vary among states.
Please note that you may need to check with the local council to learn about zoning requirements for the factory you’re looking at buying. The following is an example of the industrial zoning for one state in Australia:
Cheers,
Otto
Factory zoning generally falls under industrial zoning. However, the kind of work that can be undertaken in these zones vary among states.
Please note that you may need to check with the local council to learn about zoning requirements for the factory you’re looking at buying. The following is an example of the industrial zoning for one state in Australia:
- Industrial 1 Zone: Provides for manufacturing industries, the storage and distribution of goods and associated uses in a manner that doesn’t affect the safety and amenity of local communities.
- Industrial 2 Zone: Similar to 1 Zone.
- Industrial 3 Zone: Provides for industries and associated uses in specific areas where special consideration of the nature and impacts of industrial uses is required or to avoid inter industry conflict and to allow limited retailing in appropriate locations.
Cheers,
Otto
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Buying my first factory
Hi crusaders,
Choosing the right factory usually comes down to whether it meets the needs of your business or the tenants wanting to rent there. You may be required to have proper experience working in the same industry.
Here is a list of things that you may need to consider while surveying a factory:
The zoning in gentrified areas are re-assessed by the state government or local council. This may also include making improvements to transport links. You may be able to ask the local council for any development plans for the area, or you can have a look at government websites about plans for your state.
You can give us a call directly if you have further issues.
Cheers,
Otto
Choosing the right factory usually comes down to whether it meets the needs of your business or the tenants wanting to rent there. You may be required to have proper experience working in the same industry.
Here is a list of things that you may need to consider while surveying a factory:
- Good land space.
- Easy access for heavy vehicles.
- Good clearance height.
- Wide doors.
- Loading dock.
- Good security facilities.
- Office space.
- Engineering certificate.
The zoning in gentrified areas are re-assessed by the state government or local council. This may also include making improvements to transport links. You may be able to ask the local council for any development plans for the area, or you can have a look at government websites about plans for your state.
You can give us a call directly if you have further issues.
Cheers,
Otto