When most people think about property investing, they picture houses or apartments. But savvy investors? They’re looking at warehouses, offices, retail shops, medical clinics, and more. Here’s why:
📈 Higher Yields – Commercial properties can offer 6%–10% net rental yield, versus 2–4% in residential.
⏳ Longer Leases – Think 3, 5 or even 10 years, with built-in rent increases.
💸 Tenant Pays the Bills – In most commercial leases, the tenant covers outgoings like council rates, insurance, and even maintenance.
📉 Lower Hands-on Management – Set-and-forget is real here.
🧠 It’s a Numbers Game – No emotional buyers. It’s all logic, leases, and returns.
🔑 Pro Tip from Anitha Varghese at Kanova Loans:
“Commercial property is about income, not emotions. I help my clients understand whether this is the right investment strategy based on their risk profile and goals.”
Commercial real estate comes in different flavours—each with different risks and rewards:
🛍️ Retail – Shops, takeaway joints, strip malls. High visibility, but consumer dependent.
💼 Office – Think suburban suites to CBD towers. Hybrid work has changed this game.
🏭 Industrial – Warehouses, factories, storage—currently HOT due to e-commerce.
🏥 Specialised – Childcare, medical, gyms, petrol stations—strong leases but more niche.
🏘️ Mixed-Use – Commercial on ground floor, residential on top. Tricky, but can be gold.
🔑 Anitha’s Insight:
“Different asset types appeal to different lenders. I help you compare what’s best—not just based on yield, but also your finance strategy.”
Let’s get nerdy for a sec, because numbers don’t lie in commercial:
Net Yield = (Net Rent ÷ Purchase Price) × 100
Cap Rate = NOI ÷ Market Value
NOI (Net Operating Income) = Rent – Operating Costs
GST: Often applicable, unless sold as a “going concern”
💡 Example:
Warehouse purchase: $1M
Rent: $80k/year (net)
Net Yield = 8%
Cap rate helps determine if you’re paying a fair price.
💬 Anitha’s Tip:
“I use property calculators and lender checklists to help clients understand if the property stacks up—not just for cash flow, but for finance approval too.”
Understanding GST rules for commercial properties is essential—especially if you’re buying a property with a lease or under a going concern. See from ATO >> GST rules for commercial properties
Commercial real estate isn’t like bidding at a Saturday auction.
Here’s what works:
🔍 Search on realcommercial.com.au, REA Commercial, or via agents
💬 Negotiate more than price: ask for rent guarantees, fit-outs, or delayed settlements
📈 Look at lease strength, not just location
✅ With Kanova Loans on your side:
Anitha ensures your finance structure supports the terms you’re negotiating—she even works with your accountant or solicitor if needed.
You wouldn’t buy a car without a check-up, right? Same goes for commercial property.
📋 Checklist:
Lease terms: length, rent increases, outgoings
Tenant strength: can they pay?
Zoning, compliance, council reports
Building report (roof, plumbing, asbestos, etc.)
🛡️ Anitha’s Role Here:
“I’ll look at the lease and flag anything that might spook a lender—like short lease terms or unusual conditions.”
Commercial deals mean more complex contracts. Some points to review:
Is GST included or excluded?
Is it a Retail Lease (different rules apply)?
Does the lease transfer with the sale?
Are you getting a clean assignment?
📞 Team Up with Anitha:
She collaborates with your legal team to make sure your finance, structure, and contracts align—especially for SMSFs, trusts, or GST exemptions.
🏦 Types of Loans:
Full Doc (standard)
Lease Doc (based on lease income)
Low Doc (for self-employed)
SMSF (super fund borrowing)
📉 LVRs: Generally 60–70%, so you’ll need more deposit than residential.
💥 Why work with Anitha?
Access to 60+ lenders
Understands low-doc, SMSF, and lease-doc loans
Tailors finance based on your long-term portfolio strategy
Proactive with rate reviews after settlement
🔥 “Getting the loan is one thing—structuring it for your next deal is what I help with,” – Anitha Varghese
Should you buy in your name? A company? A trust?
Common options:
Personal Name – Simple but exposed
Company – Separate legal entity
Trust – Flexibility & tax planning
SMSF – Long-term wealth building
Anitha Works With Your Accountant
She ensures your loan is compatible with your entity structure so you don’t get rejected due to paperwork mismatches.
Choosing the right business structure for property investment can impact your tax, liability, and finance—check ASIC’s guide for a breakdown.
📆 After purchase, here’s your focus:
Lease management (rent reviews, renewals)
Property maintenance
Tenant relationships
Value-add opportunities (like solar, signage, subletting)
💡 Tip:
Kanova Loans offers ongoing loan reviews—so you’re not stuck on outdated rates when your rental income increases.
🏙️ Want to know where to buy next?
Industrial: Still booming 🚚
Retail: Strong in neighbourhood strips 🏪
Office: Mixed signals 🧑💻
Look at cap rate shifts, interest trends, tenant demand
🧠 Anitha has access to lender sentiment reports and helps you understand where banks are tightening vs where they’re happy to lend.
Keep up with CoreLogic’s commercial property research to understand cap rate movements, vacancy trends, and suburb performance.
Once your first deal is done, it’s game on:
Use equity to fund your next purchase
Refinance after adding value
Diversify across states or property types
Plan your exit: sell, hold, or develop?
📣 Anitha’s specialty?
Helping clients map out the next 3–5 years of borrowing power so they can keep scaling without hitting a finance wall.
Whether you’re a first-time investor or scaling to your 5th commercial deal, Anitha Varghese at Kanova Loans will guide your finance journey—strategically and stress-free.
Book your free 1:1 finance strategy call now »
Disclaimer: This blog is for general information only and doesn’t constitute personal financial advice. Speak to a licensed advisor or broker for guidance specific to your situation.
© Kanova Financials PTY Ltd
| ACN 634 774 002 | Australian Credit Licence 389328 | CRN: 486204
Kanova Loans helps Australians access home, car, and commercial finance through expert guidance and top lender comparisons — led by trusted senior mortgage broker Anitha Varghese.
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