How Much Cash Do You Need for Commercial Property?

Want a clear capital and finance plan before buying your first commercial property? Book a free strategy session with Helen: https://link.unikorn.com.au/widget/bookings/calendar-strategy-call  In this episode of the Commercial Property Investor, Helen breaks down the real upfront and ongoing costs of buying commercial property, using a $1 million purchase as a practical example. She explains how lease-doc lending works, where your deposit and transaction costs come from, what the tenant may cover, and why the right structure and support team matter before you settle. Helen dives into: ◼️ Why commercial-property entry costs are often misunderstood ◼️ How lease-doc lending uses the property’s lease income in the lending assessment ◼️ Why the lender will assess the lease, tenant, outgoings, and local property value ◼️ The difference between residential and commercial loan-to-value ratios ◼️ How your chosen loan structure affects the deposit you need ◼️ Why you need to allow for both the deposit and transaction costs ◼️ The stamp duty, legal, valuation, due-diligence, and buyer’s-agency costs to plan for ◼️ Why Helen uses an 8% transaction-cost allowance as a starting guide in her example ◼️ What a 65% LVR could mean for the cash required on a $1 million property ◼️ How net leases can shift certain property outgoings to the tenant ◼️ Why you still need to understand the specific lease and property before relying on its income ◼️ The ownership structures investors may consider, including trusts, companies, and SMSFs ◼️ Why accounting, audit, and compliance costs can differ by structure ◼️ What happens after settlement and the role of the property manager ◼️ Why strategy, finance, funds, due diligence, and the right team should come before the deal 00:00:00 How much capital you need to enter commercial property 00:00:39 How lease-doc lending works 00:01:24 Why the lease and valuation matter to the bank 00:02:10 Commercial LVRs and what they mean for your deposit 00:03:00 The deposit and transaction costs on a $1 million property 00:04:05 Stamp duty, legal fees, due diligence, and buyer’s-agency costs 00:04:52 What the tenant may pay under a net lease 00:05:33 Ownership structures and ongoing accounting costs 00:06:32 What happens after settlement 00:06:56 The three things to have in place before you buy Follow for more insights and updates: Website: https://helentarrant.com/  Buyer’s Agency: https://unikorn.com.au/  LinkedIn: https://www.linkedin.com/in/helentarrant/  Instagram: https://www.instagram.com/helentarrantofficial/  Facebook: https://www.facebook.com/helentarrantcommercialproperty TikTok: https://www.tiktok.com/@helentarrantofficial