Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Commercial Premises Purchase

  • 18-05-2014 7:55pm
    #1
    Closed Accounts Posts: 466 ✭✭


    I'm looking for advise on purchase of a commercial premises. I don't have a particular premises in mind, I want to get prior approval on a premises for €300,000 so if a suitable premises comes up I know I have the backing of the bank and hopefully close the deal very quickly.
    The advise I need is:
    1. For this sort of money does anyone recommend a particular bank?
    2. How much of purchase price will bank fund?
    3. What terms can I expect from the bank?
    4. Am I best to buy through the company or purchase personally?
    5. I heard if a commercial premises is purchased this year it is exempt from capital gains tax. Is there any truth to this?
    6.If I purchase a premises that is too large for my company is there much interest out there in renting?

    Any advise is greatly appreciated.


Comments

  • Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    if you have 150K you might find a bank interested in lending the balance, Market rents are around €2-3 per sq ft, if you can find anyone looking for it... tons out there at that money. Your 150K plus a personal guarantee for the balance would be the norm these days.
    Most commercial properties are sold +VAT, so if you buy it personally you will have to register for VAT or suck it up yourself. Rents received personally are treated as unearned income.... not nice.

    PS Rents for office/retail would be higher, the numbers mentioned are for industrial space.


  • Closed Accounts Posts: 572 ✭✭✭relaxed


    beanie10 wrote: »
    I'm looking for advise on purchase of a commercial premises. I don't have a particular premises in mind, I want to get prior approval on a premises for €300,000 so if a suitable premises comes up I know I have the backing of the bank and hopefully close the deal very quickly.
    The advise I need is:
    1. For this sort of money does anyone recommend a particular bank?
    2. How much of purchase price will bank fund?
    3. What terms can I expect from the bank?
    4. Am I best to buy through the company or purchase personally?
    5. I heard if a commercial premises is purchased this year it is exempt from capital gains tax. Is there any truth to this?
    6.If I purchase a premises that is too large for my company is there much interest out there in renting?

    Any advise is greatly appreciated.

    Pretty sure it's best buy it personally and not through a company unless you intend to use it for the company business, eg you sell tiles and want to open a tile shop yourself.

    As for the banks and borrowing probably best talk to your existing bank first.


  • Registered Users, Registered Users 2 Posts: 1,581 ✭✭✭Voltex


    relaxed wrote: »
    Pretty sure it's best buy it personally and not through a company unless you intend to use it for the company business, eg you sell tiles and want to open a tile shop yourself.

    As for the banks and borrowing probably best talk to your existing bank first.
    If the OP buys the property personally..how does he deal with the income tax liability that arises? Mortgage repayments are not personally tax deductible unless a legitimate business expense as in the case of the business buying the property.
    It used to be a good idea, where principles bought a commercial property personally that also acted as an investment.


Advertisement