Buying Business Premises Australia

Most banks offer 65% to 75% LVR for owner-occupier business premises purchases, depending on the property type, location, business strength and borrower profile. Stronger trading businesses with clear serviceability and well-located premises can sit at the upper end. SMSF purchases typically cap at 70% to 75% LVR through specialist SMSF commercial lenders.

Most business premises purchases require a deposit of around 25% to 35% of the purchase price. The exact deposit depends on the lender, property type, valuation, business financials and borrowing structure. Additional security such as residential property can sometimes reduce the cash deposit required.

Buying builds equity, locks in occupancy costs and gives you control over the property. Leasing preserves cash for the business, keeps your balance sheet lighter and offers more flexibility to relocate. The right answer depends on your business stability, growth plans, cash position and how long you expect to stay in the same location. Many business owners find buying worthwhile once the business is established and location is settled.

Yes. An SMSF can purchase eligible commercial property and lease it back to your business at market rent. This is one of the most common SMSF commercial strategies in Australia. The transaction must follow SMSF lending rules and use a limited recourse borrowing arrangement (LRBA). You should obtain qualified financial, legal and tax advice before proceeding. See our SMSF commercial property loans guide for more detail.

Typical documents include the contract of sale, two years of business financial statements, tax returns, BAS statements, bank statements, entity documents such as company or trust extracts, evidence of deposit and details of the property. SMSF purchases require additional documents including the SMSF deed, fund financials and bare trust details. The exact list depends on the lender and loan structure.

Yes. Most business premises buyers are self-employed or company directors. Lenders assess your business trading income, BAS, tax returns and financial statements. If you cannot provide full financials, low doc commercial loan options may be available using BAS statements, bank deposits or accountant declarations as alternative income evidence.

Lenders commonly finance offices, retail shops, warehouses, industrial units, medical and allied health premises, professional suites and mixed-use properties where the business operates from the ground floor or main tenancy. The property must have a clear commercial use, acceptable zoning and a supportable valuation.

Approval timelines typically range from two to six weeks for a well-packaged application with a major bank or non-bank lender. SMSF, low doc, complex entity or specialist property scenarios can take longer. The biggest cause of delays is incomplete documentation or unclear business financials.