Hi all,
Long time listener, first time caller requiring some expert opinions. Im considering purchasing some industrial land with a view to constructing two smallish or one medium sized standard tilt slab warehouse in the not too distant future. Im pretty familiar with the residential vs commercial debate but am admittedly inexperienced with commercial investing. My questions are as follows,
1. Through my own research I have established that you will pay $220,000 per 1000m2 (very approx) but the property I wish to purchase is a little more. I think its worth it but how would you accurately calculate its value and how will the lenders estimate its value since there is obviously no income?
2. Would it be possible to obtain a 80% loan for this property? With the other 20% being a cash deposit.
3. I have never purchased vacant land, residential or commercial so what do I need to ask for? Does vacant land have a section 32? Do I need to get soil tests?
4. I pressed a builder for an (once again very approx) estimate on possible construction costs for a tilt slab warehouse and he suggested that $300 per m2 would cover it, meaning 500m2 warehouse = $150,000, 1000m2 = $300,000 and so on. Does anyone know if this is accurate?
5. I have a residential property in a hybrid trust, would it be ok to purchase this land through the same trust or would it be advisable to use a separate or different trust?
Any other advice or tips on this topic would be greatly appreciated, Ive learnt so much from this forum so far and thank you all for your comments and shared wisdom.
Long time listener, first time caller requiring some expert opinions. Im considering purchasing some industrial land with a view to constructing two smallish or one medium sized standard tilt slab warehouse in the not too distant future. Im pretty familiar with the residential vs commercial debate but am admittedly inexperienced with commercial investing. My questions are as follows,
1. Through my own research I have established that you will pay $220,000 per 1000m2 (very approx) but the property I wish to purchase is a little more. I think its worth it but how would you accurately calculate its value and how will the lenders estimate its value since there is obviously no income?
2. Would it be possible to obtain a 80% loan for this property? With the other 20% being a cash deposit.
3. I have never purchased vacant land, residential or commercial so what do I need to ask for? Does vacant land have a section 32? Do I need to get soil tests?
4. I pressed a builder for an (once again very approx) estimate on possible construction costs for a tilt slab warehouse and he suggested that $300 per m2 would cover it, meaning 500m2 warehouse = $150,000, 1000m2 = $300,000 and so on. Does anyone know if this is accurate?
5. I have a residential property in a hybrid trust, would it be ok to purchase this land through the same trust or would it be advisable to use a separate or different trust?
Any other advice or tips on this topic would be greatly appreciated, Ive learnt so much from this forum so far and thank you all for your comments and shared wisdom.
