Commercial Property Uncovered: Beyond the Contract

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Commercial & Industrial Property Tax: What Buyers, Owners & Tenants Need to Know

Victoria’s Commercial and Industrial Property Tax regime is still relatively new, but its long-term implications are becoming increasingly important for anyone involved in commercial property.

In this episode, we break down what buyers, owners and tenants should understand about CIPT — and why it needs to form part of the due diligence process.

In this episode

00:00 — Welcome to Commercial Property Uncovered
Meet the three perspectives behind the podcast: property, legal and finance.

02:00 — What is CIPT?
We explain the transition from stamp duty towards an annual tax on commercial and industrial property.

04:00 — Understanding the 10-year transition
Why knowing when a property entered the regime is critical when assessing a purchase.

07:00 — A practical example
We use a $1 million commercial property to illustrate the difference between a property entering the regime for the first time and one that has already entered.

10:00 — What does CIPT mean for tenants?
Why tenants should examine their leases carefully and understand whether the tax can be passed through as an outgoing.

11:00 — Finding opportunities in the market
Could properties that have already entered the regime create opportunities for future buyers?

15:00 — Why property classification matters
We discuss zoning, property codes and the importance of reviewing the relevant documentation.

18:00 — A real-world regional property example
A client faced a choice between taking a regional stamp duty concession or potentially avoiding a future CIPT obligation.

19:00 — The transition loan program
We discuss the Victorian transition loan program and some of the practical challenges buyers need to consider.

22:00 — Can CIPT influence property values?
Why the market may start paying more attention to properties that have already entered the regime.

25:00 — A major saving for a buyer
A real-world transaction demonstrates how the CIPT position can create a significant difference between what a previous owner paid and what a subsequent buyer may pay.

27:00 — How to identify properties already in the regime
The importance of checking the transaction history and relevant Section 32 and State Revenue Office information.

30:00 — Looking beyond the purchase price
A $5 million property demonstrates why buyers need to understand the full cost of ownership, including land tax, CIPT, rates and other outgoings.

33:00 — Wins & Warnings
A rural property transaction uncovers title discrepancies and land encroachments — highlighting why detailed due diligence matters.

Key takeaways

• Understand whether the property is already in the CIPT regime.
• Establish when it entered the regime.
• Consider the long-term tax implications, not just the upfront purchase costs.
• If you’re a tenant, understand whether CIPT can be passed through under your lease.
• Compare properties based on total ownership costs.
• Get the right legal, tax, finance and property advice before committing.

The question to ask

When did this property enter the CIPT regime, and what does that mean for me as the next owner or tenant?

Commercial Property Uncovered: Beyond the Contract

Hosted by Vicki Likoudis, Richele Janjatovich and Nicole Faid.

🏢 Richele Janjatovic | Finance: [Mecca Finance Group] + LinkedIn
🏢 Vicki Likoudis | Buyer & Tenant Advocacy: [Impacta Commercial Advocates + LinkedIn]
🏢 Nicole Faid | Property Contracts: [Accord Conveyancing + LinkedIn]

📧 Have a commercial property question you'd like us to answer? Send it to [email protected]

Follow us on Instagram: @CommercialPropertyUncovered

Subscribe, follow and leave us a review wherever you listen to podcasts.

**DISCLAIMER:** This podcast provides general information and is for educational purposes only. The hosts are not financial advisers, and this content is not personal financial, legal or investment advice. Seek advice from appropriately qualified professionals before making financial, SMSF, investment or property decisions.

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Episode: Rising Interest Rates and What They Mean for Commercial Property

Interest rate rises can create uncertainty, but they can also open up opportunities for commercial property buyers.

In this episode, we explore how higher interest rates affect borrowing capacity, commercial property values, cash flow and buying decisions. We discuss the differences between owner-occupiers and investors, the risks of using residential equity to secure commercial debt, and why preparation and informed decision-making matter in a changing market.

Whether you're a business owner looking to buy your premises, an investor considering commercial property, or someone weighing up whether to buy now or wait, this conversation offers practical insights from the perspectives of commercial property advocacy, finance and law.

In this episode

00:00 Introduction to Commercial Property Uncovered: Beyond the Contract

00:25 How rising interest rates affect commercial property buyers and investors

01:00 How home loan repayments influence commercial borrowing capacity, including purchases through superannuation

05:07 Cross-collateralisation: using residential equity to support a commercial property purchase

06:26 How sensitive are business owners to interest rate changes?

08:40 How to assess your borrowing capacity when interest rates rise

10:18 Is using home equity a smart strategy, or does it add too much risk?

11:48 Buying with family members or business partners: shared security, changing financial goals and risk exposure

13:23 Estate planning and protecting business partners when purchasing commercial property together

13:54 The biggest mistakes buyers make during periods of rising interest rates

15:47 Interest rate hedging: managing exposure to future rate increases

17:32 How interest rates influence commercial property values compared with residential property

20:09 The relationship between residential and commercial property markets

20:45 Why residential property investors are considering a move into commercial property

23:16 The risks of buying commercial property under $1.5 million, including vacancy, tenant turnover and asset selection

26:28 Will commercial property prices fall if interest rates rise further?

27:35 Should you buy now or wait for interest rates to come down?

28:33 Buying when you're ready: assessing your finances, business needs and professional advice

30:10 Why buyer choice can create stronger negotiating opportunities

30:29 What another interest rate rise could mean for investor cash flow and borrowing capacity

31:31 What lawyers are seeing in commercial property negotiations and contracts

33:05 Lease doc lending: how rental income, loan-to-value ratios and interest cover requirements affect borrowing

34:26 Wins and warnings: what happens when commercial property negotiations stall

37:04 Episode recap: interest rates, cash flow and the right time to buy

37:38 Closing remarks

Key takeaways

• Know your borrowing capacity. Speak with a specialist commercial finance broker to understand your options before committing to a property.
• Consider the full picture. Using residential equity may improve borrowing capacity and lending terms, but it also exposes additional assets to risk.
• Understand the difference between owner-occupiers and investors. Their motivations, financial considerations and exposure to market changes can differ considerably.
• Look beyond the advertised yield. Tenant quality, vacancy risk, lease terms, location and the potential for future costs all matter when assessing a commercial investment.
• Don't wait for perfect market conditions. Focus on whether the property suits your objectives and whether you're financially prepared to proceed.
• Keep your options open. As one of the examples in this episode demonstrates, exploring alternative properties can lead to a better outcome when negotiations stall.

Commercial Property Uncovered: Beyond the Contract

Hosted by Vicki Likoudis, Richele Janjatovich and Nicole Faid.

🏢 Richele Janjatovic | Finance: [Mecca Finance Group] + LinkedIn
🏢 Vicki Likoudis | Buyer & Tenant Advocacy: [Impacta Commercial Advocates + LinkedIn]
🏢 Nicole Faid | Property Contracts: [Accord Conveyancing + LinkedIn]

📧 Have a commercial property question you'd like us to answer? Send it to [email protected]

Follow us on Instagram: @CommercialPropertyUncovered

Subscribe, follow and leave us a review wherever you listen to podcasts.

**DISCLAIMER:** This podcast provides general information and is for educational purposes only. The hosts are not financial advisers, and this content is not personal financial, legal or investment advice. Seek advice from appropriately qualified professionals before making financial, SMSF, investment or property decisions.

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When Perfect Isn’t Perfect: The Hidden Risks That Can Change a Commercial Property Deal

Buying commercial property is about more than finding the right location and agreeing on a price. A property that looks like the perfect opportunity can reveal unexpected risks when you dig deeper into the contract, lease, planning requirements, finance structure, and long-term investment potential.

In this episode of Commercial Property Uncovered: Beyond the Contract, we explore why commercial property due diligence is critical and the questions buyers should ask before committing to a purchase.

We discuss:

• Commercial property contracts and special conditions
• Lease strength and tenant risk
• Planning and zoning considerations
• Finance approval and lender appetite
• Environmental obligations
• Future resale and exit strategy

Whether you’re a business owner, investor, or considering your first commercial property purchase, this episode highlights what to look for before settlement.

What You’ll Learn in This Episode

00:00 | Welcome to Commercial Property Uncovered: Beyond the Contract

Why successful commercial property decisions require more than choosing a property that looks right on paper.

00:25 | When a Commercial Property Looks Perfect, But Isn’t

A property can have the right location, price, and numbers, but deeper investigation can uncover issues that change the deal.

The team discusses why buyers need to look beyond first impressions and complete proper due diligence.

01:07 | The Risk of Falling in Love With a Property Too Early

Emotional attachment can make it harder to objectively assess:

• Contract terms
• Financial implications
• Long-term suitability
• Potential risks

The episode explores how confirmation bias can impact commercial property decisions.

03:01 | An Accepted Offer Is Only the Beginning

Once an offer is accepted, important investigations begin, including:

• Legal review
• Finance approval
• Lease assessment
• Planning checks
• Property due diligence

A commercial property purchase is a process, not just a transaction.

03:11 | Why Commercial Property Contracts Need Careful Review

Commercial contracts can contain complex terms and special conditions that impact buyers long after settlement.

The team discusses:

• Reviewing contracts before signing
• Understanding vendor-friendly conditions
• Identifying ongoing obligations

04:36 | Commercial Leases: Why the Tenant Matters

For investors, the lease is a major factor in property value.

Topics include:

• Long-term leases
• Tenant strength
• Operator risk
• Understanding what supports the lease

07:00 | Looking Beyond the Lease Agreement

A long lease does not automatically mean a strong investment.

Buyers should consider:

• Rent reviews
• Market rent
• Assignment rights
• Future ownership changes

09:32 | Planning Restrictions and Property Use

A property may appear suitable for a business but may have restrictions affecting how it can legally be used.

The team discusses:

• Zoning requirements
• Change of use
• Planning considerations
• Ensuring the property is fit for purpose

11:32 | Commercial Property Tax Considerations

The team explores why buyers need to consider long-term costs, not just upfront savings.

Topics include:

• Stamp duty considerations
• Commercial property tax implications
• Future ownership costs

13:18 | Commercial Property Finance: Policy vs Lender Appetite

Finance approval depends on more than whether a lender offers a particular type of loan.

The discussion covers:

• Different lender approaches
• Changing lender appetite
• Why specialist commercial finance advice matters

15:54 | Risks That Continue After Settlement

Some obligations can remain after settlement.

Topics include:

• Special contract conditions
• Environmental responsibilities
• Ongoing property obligations

17:01 | Environmental Risks and Hidden Property Obligations

Past land use can create responsibilities for future owners.

The team discusses:

• Environmental audit overlays
• Contamination considerations
• Understanding obligations attached to a property

19:52 | Thinking About Future Property Value

A smart commercial property purchase considers the future, not just today.

Key questions:

• Will the property support business growth?
• Will it appeal to future buyers?
• What is the exit strategy?

20:35 | Wins and Warnings: Creating Better Outcomes

The team shares an example of how careful planning helped a client with:

• Early access arrangements
• Fit-out planning
• Operational readiness
• Potential GST and stamp duty efficiencies

22:00 | Questions Every Commercial Property Buyer Should Ask

Before committing, ask:

Is the information accurate?
Challenge assumptions and verify the details.

Do I know exactly what I’m buying?
Understand:

• Title details
• Boundaries
• Contract conditions
• Existing obligations

Can I afford this property long term?
Consider:

• Finance structure
• Cash flow
• Future costs
• Business growth

24:58 | Final Thoughts: Slow Down and Do Your Due Diligence

The biggest commercial property decisions are made before settlement.

Take the time to:

• Review the details
• Ask better questions
• Engage the right professionals
• Understand the risks

Topics Covered

Commercial property due diligence
Buying commercial property
Commercial property risks
Commercial property contracts
Commercial lease agreements
Commercial property finance
Commercial property investment
Property zoning and planning restrictions
Commercial property tax considerations
Commercial property settlement process
Commercial property buyer mistakes
Commercial property investment strategy

Commercial Property Uncovered: Beyond the Contract

Hosted by Vicki Likoudis, Richele Janjatovich and Nicole Faid.

🏢 Richele Janjatovic | Finance: [Mecca Finance Group] + LinkedIn
🏢 Vicki Likoudis | Buyer & Tenant Advocacy: [Impacta Commercial Advocates + LinkedIn]
🏢 Nicole Faid | Property Contracts: [Accord Conveyancing + LinkedIn]

📧 Have a commercial property question you'd like us to answer? Send it to [email protected]

Follow us on Instagram: @CommercialPropertyUncovered

Subscribe, follow and leave us a review wherever you listen to podcasts.

**DISCLAIMER:** This podcast provides general information and is for educational purposes only. The hosts are not financial advisers, and this content is not personal financial, legal or investment advice. Seek advice from appropriately qualified professionals before making financial, SMSF, investment or property decisions.

Send us Fan Mail

The real cost of buying commercial property

Buying a $2 million commercial property doesn't necessarily mean you need $400,000 in cash just because the bank will lend 80%.

In this episode, we unpack the costs that sit around the purchase price and the cash a buyer may need both to complete the transaction and after settlement.

What we discuss

00:00 | Introduction
Welcome to Commercial Property Uncovered and today's discussion about the real cash requirements when buying commercial property.

00:44 | The $2M commercial property question
Why an $1.6M loan on a $2M property doesn't mean $400K is all you need.

01:59 | The five categories of costs
Government charges and GST, due diligence, lender costs, legal and accounting fees, and post-settlement costs.

03:03 | Commercial valuation costs
Why commercial valuation fees work differently from residential lending and what buyers should budget for.

04:14 | GST and stamp duty
How GST treatment can materially affect the amount a buyer needs to fund, including the impact on stamp duty.

05:17 | Going concern vs vacant possession
A discussion around GST treatment, leasing arrangements before settlement and the importance of having the right advisers involved.

07:36 | GST and SMSF purchases
Why GST funding can be particularly important when buying commercial property through a self-managed super fund.

09:23 | The costs buyers overlook
Due diligence, lease reviews, building reports, legal costs, relocation and fit-out costs.

10:44 | How do you value commercial property?
Why commercial property valuation is different from residential property and the role of yields, comparable sales and independent valuations.

14:04 | Valuation as a negotiation tool
Why getting a valuation doesn't automatically give a buyer leverage in a negotiation.

15:53 | When should you get a valuation?
Why buyers considering an independent valuation should think about doing it before signing a contract.

17:46 | What happens if the bank valuation is lower?
How finance conditions and lender valuations can affect a transaction.

19:08 | Hidden costs in contracts, titles and leases
Land tax, congestion levies, easements, outgoings, make-good provisions and environmental considerations.

23:43 | How much cash should you keep after settlement?
Why buyers need to budget for repayments, relocation, fit-out and other post-settlement costs.

25:34 | Why fit-outs often cost more than expected
The importance of allowing a contingency for fit-out costs and unexpected expenses.

27:48 | Adding value before you own the property
How a tenant's investment in a fit-out can potentially increase the value of a property they later want to purchase.

29:29 | The $2M commercial property case study
A worked example looking at the cash requirement for a $2M vacant possession purchase.

32:37 | The GST surprise
A real-world example where an unexpected GST issue arose shortly before settlement.

35:19 | Don't skimp on your professional team
Why the right commercial lawyer, accountant, finance professional and property advisers can be important to the transaction.

36:15 | The big takeaway
The purchase price is only the starting point. Buyers need to understand the total cash required, the costs of making the property operational and the buffer they need after settlement.

Key Takeaways

1. The deposit isn't the full cash requirement.
GST, stamp duty, professional fees, finance costs, due diligence and post-settlement expenses can materially increase the amount required.

2. Understand GST before you sign.
The GST treatment of a commercial property transaction can have a significant impact on the funding required.

3. Valuation needs to happen at the right time.
If you're using an independent valuation to assess the property before committing, consider doing that before signing the contract.

4. Budget for what happens after settlement.
Fit-out, relocation, ongoing repayments, repairs and other costs need to be considered alongside the purchase price.

5. Don't assume the bank's valuation solves the pricing question.
A bank valuation serves a different purpose from determining what a buyer should be prepared to pay.

6. Build the right team early.
Commercial property transactions can involve significant financial and contractual complexity. Getting the right advisers involved early can help identify issues before they become expensive problems.

Resources:

Property Budget Checklist - Download Here

Commercial Property Uncovered: Beyond the Contract

Hosted by Vicki Likoudis, Richele Janjatovich and Nicole Faid.

🏢 Richele Janjatovic | Finance: [Mecca Finance Group] + LinkedIn
🏢 Vicki Likoudis | Buyer & Tenant Advocacy: [Impacta Commercial Advocates + LinkedIn]
🏢 Nicole Faid | Property Contracts: [Accord Conveyancing + LinkedIn]

📧 Have a commercial property question you'd like us to answer? Send it to [email protected]

Follow us on Instagram: @CommercialPropertyUncovered

Subscribe, follow and leave us a review wherever you listen to podcasts.

**DISCLAIMER:** This podcast provides general information and is for educational purposes only. The hosts are not financial advisers, and this content is not personal financial, legal or investment advice. Seek advice from appropriately qualified professionals before making financial, SMSF, investment or property decisions.

Send us Fan Mail

In this episode of Commercial Property Uncovered: Beyond the Contract, Nicole Faid, Vicki Likoudis and Richele Janjatovic unpack the key considerations for business owners buying commercial property for their own business.

Unlike an investment property, an owner-occupied commercial property needs to work for the business today while also making sense as a long-term asset. The team explores the current opportunities in the Victorian market, how to negotiate effectively, why due diligence needs to happen before signing a contract, and the risks business owners can face when their lease isn't properly managed.

In this episode, we discuss:

• Why it's currently a buyer's market for vacant possession commercial property in Victoria
• How increased land tax and other holding costs are motivating some property owners to sell
• Why having multiple property options is one of your strongest negotiation tools
• The difference between how residential and commercial properties are generally marketed and priced
• Why commercial property valuations are more complex than residential valuations
• How valuations, finance approvals and contract conditions can affect the purchasing timeline
• Why buyers should consider finance and valuation clauses when negotiating a commercial contract
• Why commercial property purchases can take considerably longer than residential transactions
• What a typical four-to-eight-week search and due diligence process can look like before signing a contract
• Why you should have your solicitor review the contract before signing, rather than after
• The importance of planning well ahead if you're a tenant considering purchasing the property you're leasing
• Why "less is more" when communicating with your landlord about your business performance and future plans
• How tenant advocacy can help when negotiating lease renewals, relocating or considering buying
• Why "if you don't have a lease, you don't have a business" when it comes to selling a business and securing finance
• How lease terms can affect the value and saleability of a business
• The importance of understanding make-good obligations and lease options
• A real-world example of a business owner who couldn't sell their business because the landlord wouldn't extend the lease
• Why you should never fall in love with a commercial property before doing proper due diligence
• How one medical business could have spent an additional $150,000 getting a property compliant before even starting its fit-out
• What happens if you discover a problem after signing a contract
• What happens when a commercial property valuation comes in below the agreed purchase price
• Why the timing of finance, valuation, legal advice and due diligence matters

Key takeaway

The best commercial property decisions are made before you sign the contract.

Whether you're buying a property for your business, negotiating a lease or considering purchasing the property you're currently occupying, having the right team involved early can help you identify risks, create leverage and avoid expensive mistakes.

Don't fall in love with the property. Fall in love with the deal.

Timestamps

00:00 Introduction
00:25 What owner-occupiers need to consider
01:24 Why it's a buyer's market for vacant possession property
02:30 The impact of Victorian land tax changes
03:59 Real-world example of buying vacant possession
04:47 What's driving negotiation opportunities
06:05 How to negotiate below the asking price
09:24 Why commercial valuations are different
10:46 The importance of due diligence before signing
11:59 How long does a commercial property purchase take?
13:06 Finance clauses, valuation clauses and timelines
14:38 What happens if you need a finance extension?
16:17 Why you should have your solicitor review the contract first
19:40 Thinking about buying the property you're currently leasing
21:43 Why "less is more" with your landlord
22:43 The rise of tenant advocacy
23:26 Why you need a lease to protect your business
24:30 When a business couldn't be sold because of the lease
26:26 Why tenancy agreements deserve their own episode
26:40 WIN: Finding the right property for a medical business
29:58 WARNING: Don't fall in love with a commercial property
30:49 Rapid fire: Can you walk away after signing?
31:34 What happens when the valuation comes in low?
33:00 Episode recap
33:24 Closing thoughts

Who is this episode for?

This episode is particularly relevant to:

• Business owners looking to buy their own commercial premises
• Owner-occupiers
• Commercial property investors
• Business owners currently leasing premises
• Tenants approaching a lease renewal
• Business owners considering purchasing the property they occupy
• Anyone buying a business with an existing commercial lease
• Buyers using finance or an SMSF to purchase commercial property

Have a question about commercial property, leases, contracts or finance? Send it through for a future episode.

Commercial Property Uncovered: Beyond the Contract

Hosted by Vicki Likoudis, Richele Janjatovich and Nicole Faid.

🏢 Richele Janjatovic | Finance: [Mecca Finance Group] + LinkedIn
🏢 Vicki Likoudis | Buyer & Tenant Advocacy: [Impacta Commercial Advocates + LinkedIn]
🏢 Nicole Faid | Property Contracts: [Accord Conveyancing + LinkedIn]

📧 Have a commercial property question you'd like us to answer? Send it to [email protected]

Follow us on Instagram: @CommercialPropertyUncovered

Subscribe, follow and leave us a review wherever you listen to podcasts.

**DISCLAIMER:** This podcast provides general information and is for educational purposes only. The hosts are not financial advisers, and this content is not personal financial, legal or investment advice. Seek advice from appropriately qualified professionals before making financial, SMSF, investment or property decisions.

Send us Fan Mail

In this episode of Commercial Property Uncovered: Beyond the Contract, Vicki Likoudis, Nicole Faid and Richele Janjatovic unpack the growing interest in purchasing commercial property through a self-managed super fund (SMSF).

With proposed changes to residential property purchases through SMSF limited recourse borrowing arrangements creating plenty of noise in the market, the team cuts through the headlines and focuses on what business owners and investors actually need to understand before making a decision.

The conversation covers how SMSF lending works, the role of an LRBA, borrowing capacity, GST, legal structures, settlement timeframes and the importance of having the right specialist advisory team in place before you find and fall in love with a property.

Most importantly, the team explains why FOMO should never be the reason you make a retirement investment decision.

In this episode, we discuss:

• What the proposed changes to residential SMSF property purchases could mean
• Why the changes do not necessarily mean SMSFs can no longer borrow
• Why commercial property may become increasingly attractive to SMSF investors
• What a Limited Recourse Borrowing Arrangement (LRBA) actually is
• How an LRBA protects the other assets held within an SMSF
• The guarantees members may still need to provide when borrowing through an SMSF
• Why independent legal advice is required as part of the lending process
• Why the right starting point is understanding your financial and retirement strategy, not finding a property
• The different roles of the financial adviser, accountant, finance broker, lawyer and buyer's advocate
• Why business owners may consider purchasing their own commercial premises through an SMSF
• How member contributions and rental income can affect borrowing capacity
• Why you generally need a 20% deposit plus costs
• The often-overlooked issue of GST funding when purchasing vacant commercial property
• How GST can significantly increase the upfront funds required
• Why Victorian stamp duty on a GST-inclusive purchase can create an additional cost
• How lenders assess rental income, contributions, dividends and other SMSF income
• Why commercial SMSF lending is generally offered by specialist and second-tier lenders
• Why a residential mortgage broker may not have access to the commercial SMSF lending products you need
• Why you need to establish your SMSF before receiving formal finance approval
• Why you generally can't release equity from an SMSF commercial property to purchase another property
• The restrictions imposed by the SIS Act
• Why you can't simply cross-collateralise SMSF properties
• The importance of allowing enough time for SMSF establishment, rollovers, finance and legal work
• Why 60 days should be considered a minimum settlement timeframe, with 90 days preferable in many SMSF transactions
• The single acquirable asset test and why multiple titles, including car parks, can create complications
• Why the legal structure and correct entity need to be considered before signing a contract
• How signing as "and/or nominee" may work in Victoria, subject to legal advice
• Why getting the sequence right is critical: strategy, finance, structure, property search and contract
• Why buying a property personally and trying to transfer it into your SMSF later can trigger additional stamp duty
• Why asset selection is particularly important when you're investing retirement funds

Wins & Warnings

⚠️ Warning: Don't buy based on FOMO

The team discusses the growing pressure in the market for people to rush into residential SMSF property purchases before potential legislative changes.

The key message is simple: don't make a retirement investment decision because you're afraid of missing out.

Your SMSF strategy needs to be based on your individual circumstances, financial goals and long-term plan.

🚩 Warning: Be careful of "too good to be true" property promises

A real-world example highlights the risks of investing in a highly specialised residential property based on promises of 10%+ guaranteed returns and the expectation that SMSF lending would be available.

The investor committed approximately $250,000 of superannuation funds, only to discover that the property was extremely difficult to finance and potentially difficult to sell because of its specialised nature.

If the returns sound too good to be true, stop and investigate before committing your money.

💡 The importance of independent advice

The team explains why you should challenge the information you're being given and avoid confirmation bias.

Your advisers should be appropriately qualified and independent, and you should understand why a particular structure, lender or property is being recommended.

Quick Fire

How relevant is pre-approval for commercial property?
Pre-approvals generally last around 90 days, but the right approach depends on your circumstances and whether you've identified a property. Before starting your property search, it's still worth establishing your borrowing capacity and budget.

What does Nicole look for first in a commercial contract?
The title, followed by the GST position. The title can reveal issues including whether the property satisfies the single acquirable asset test, as well as encroachments, notices, building orders and other potential problems.

What should business owners consider when assessing location?
It's not just about whether the location works for the business today. Consider accessibility, parking, public transport, infrastructure, population growth, clearway restrictions, fit-out requirements and the property's potential as a long-term asset.

Key Takeaways

1. Pause before you act. Don't let headlines or FOMO drive a major retirement decision.
2. Build the right advisory team early. SMSF transactions require specialist financial, legal, accounting and property expertise.
3. Get the sequence right. Establish the strategy and finance parameters before committing to a property.
4. Understand the structure. SMSF property purchases involve strict rules and significant legal and financial obligations.
5. Don't underestimate GST and costs. The upfront funding requirements can be considerably higher than expected.
6. Allow enough time. SMSF purchases have multiple moving parts, so rushing toward settlement creates unnecessary risk.
7. Choose the asset carefully. You're investing retirement money, so the property needs to work not only for your business today but also as a long-term asset.
8. Challenge the advice you're given. Don't simply seek information that confirms what you already want to hear.

The biggest takeaway? Your SMSF property decision should start with your strategy, not the property.

If you're considering commercial property through an SMSF, pause, get the right specialists around you, understand the structure and only then start looking for the right asset.

Follow and subscribe to Commercial Property Uncovered: Beyond the Contract, leave a review or send through a question for a future episode.

Commercial Property Uncovered: Beyond the Contract

Hosted by Vicki Likoudis, Richele Janjatovich and Nicole Faid.

🏢 Richele Janjatovic | Finance: [Mecca Finance Group] + LinkedIn
🏢 Vicki Likoudis | Buyer & Tenant Advocacy: [Impacta Commercial Advocates + LinkedIn]
🏢 Nicole Faid | Property Contracts: [Accord Conveyancing + LinkedIn]

📧 Have a commercial property question you'd like us to answer? Send it to [email protected]

Follow us on Instagram: @CommercialPropertyUncovered

Subscribe, follow and leave us a review wherever you listen to podcasts.

**DISCLAIMER:** This podcast provides general information and is for educational purposes only. The hosts are not financial advisers, and this content is not personal financial, legal or investment advice. Seek advice from appropriately qualified professionals before making financial, SMSF, investment or property decisions.

Send us Fan Mail

What do you really need to know before buying commercial property?

Commercial property can look straightforward on the surface, but the risks, opportunities and decision-making process are very different from residential property.

In this episode of Commercial Property Uncovered: Beyond the Contract, Richele Janjatovic of Mecca Finance, Vicki Likoudis of Impacta Commercial Advocates and Nicole Faid of Accord Conveyancing go back to basics and unpack the fundamentals of commercial property.

We discuss the different types of commercial property, zoning and permitted uses, commercial finance, due diligence, contract negotiations and some of the costly mistakes buyers can make when they do not investigate a property properly.

Whether you are a business owner looking for premises, an investor considering your first commercial property, or an experienced buyer looking to sharpen your approach, this episode is packed with practical insights.

In this episode, we cover:

• The different types of commercial property and how they work
 • Why medical property has become its own asset class
 • How zoning can affect what you can and cannot do with a property
 • Mixed-use property and how lenders assess it
 • Why industrial property has become so popular
 • What owner occupiers should consider before buying
 • Why you should not rely solely on information provided by the selling agent
 • How lenders look at vacant commercial property
 • The importance of building, pest and environmental due diligence
 • What to investigate before signing a contract
 • Buying at auction and through an EOI campaign
 • Negotiating the contract and knowing when to pick your battles
 • Why some commercial properties remain vacant for months or even years
 • Real examples of costly mistakes that were avoided through early advice

Timestamps

00:00 Introduction to Commercial Property 101
 01:24 Understanding commercial property asset classes
 02:35 Zoning and permitted uses
 04:22 Questions to ask before signing a contract
 05:28 Mixed-use property and commercial finance
 07:58 Why industrial property has become so popular
 10:30 The importance of scarcity
 11:39 Buying vacant commercial property
 12:40 What owner occupiers should consider
 14:14 Who does the selling agent really work for?
 15:24 Why consider a commercial buyer's advocate?
 16:21 How lenders assess commercial property
 17:34 Checking whether your business can operate from the property
 18:32 A $6 million transaction that almost went wrong
 19:26 Compliance and change of use
 20:54 Commercial property fundamentals
 23:18 Building and property inspections
 26:24 Why due diligence matters
 27:54 Due diligence before auctions and EOI campaigns
 28:10 Wins and Warnings
 28:50 Negotiating the contract
 30:34 Securing 100% finance
 31:38 Why commercial properties sit vacant
 32:37 The most expensive commercial property mistakes
 34:19 Episode wrap-up

About Commercial Property Uncovered

Commercial Property Uncovered: Beyond the Contract brings together three professionals who see commercial property from different perspectives: property, contracts and finance.

Hosted by Vicki Likoudis, Richele Janjatovich and Nicole Faid, the podcast is designed to help business owners, investors, buyers and sellers make better commercial property decisions.

We go beyond the contract to uncover what really happens when you buy, sell, lease or finance commercial property.

If you found this episode useful, follow or subscribe to Commercial Property Uncovered: Beyond the Contract and leave us a review or question for a future episode.

The best commercial property decisions are usually made long before settlement.

Commercial Property Uncovered: Beyond the Contract

Hosted by Vicki Likoudis, Richele Janjatovich and Nicole Faid.

🏢 Richele Janjatovic | Finance: [Mecca Finance Group] + LinkedIn
🏢 Vicki Likoudis | Buyer & Tenant Advocacy: [Impacta Commercial Advocates + LinkedIn]
🏢 Nicole Faid | Property Contracts: [Accord Conveyancing + LinkedIn]

📧 Have a commercial property question you'd like us to answer? Send it to [email protected]

Follow us on Instagram: @CommercialPropertyUncovered

Subscribe, follow and leave us a review wherever you listen to podcasts.

**DISCLAIMER:** This podcast provides general information and is for educational purposes only. The hosts are not financial advisers, and this content is not personal financial, legal or investment advice. Seek advice from appropriately qualified professionals before making financial, SMSF, investment or property decisions.