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At some point, many established business owners do the same sum: the rent going to the landlord each month starts to look a lot like a loan repayment that builds someone else's equity. Buying your own premises can be a sound move — but it is a property decision, a business decision, a tax decision and a structuring decision rolled into one, and each piece deserves its own thought. Here is how the owner-occupier journey typically runs, from the rent-versus-buy question through to settlement. This is general information only; the right answer depends on your business, your numbers and advice specific to you.
Buying has genuine attractions:
And genuine costs:
Neither column wins by default. Mature businesses with stable space needs tend to get the most from buying; businesses still changing shape often get more from renting. Run the numbers both ways with your accountant before falling in love with a building.
With a commercial investment property, the lender assesses the lease. With owner-occupied premises there is no lease — so the lender assesses your business: financial statements and tax returns (commonly two years), interim figures, existing commitments, and whether profit comfortably covers the proposed repayments. One factor works in your favour: the rent you currently pay disappears when you own, so lenders can add it back when testing capacity — a business already paying rent similar to the proposed repayments makes an intuitive case.
Expect the usual commercial machinery around that core: director guarantees, a specialist valuation, and scrutiny of the property's suitability and resale prospects. How the assessment mechanics work in detail — valuations, cover ratios, asset types — is covered in our guide to how lenders assess commercial property loans, and the broader landscape in our commercial property loan guide.
Commercial lending is more conservatively geared than residential. In general terms, maximum LVRs are typically lower than for a home loan, there is no LMI to stretch a small deposit further, and specialised properties are capped lower again — so plan for a materially larger deposit than a residential purchase, plus transfer (stamp) duty, legal and due-diligence costs, valuation and lender fees. Loan terms are commonly shorter than the residential 30 years, which lifts repayments for a given amount. Where the numbers land for your purchase depends on the lender, the property and your business — a broker can pre-assess this before you make an offer.
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Commercial purchases are often subject to GST, which changes how much cash you need at settlement — lenders do not automatically finance the GST component, even where a GST-registered buyer can later claim it back. Some transactions qualify as a going concern — broadly, a property sold with a business or tenancy in place under strict conditions — and can be GST-free. Buying premises you will occupy yourself often does not fit that mould, but the treatment depends on the specific transaction. The only safe rule: confirm the GST treatment with your accountant before exchanging contracts, and make sure the contract reflects it.
Who signs the contract matters as much as which building you choose, because it shapes asset protection, tax and your exit:
Decide the entity before you sign the contract — changing the purchaser after exchange can trigger duty consequences.
A premises purchase often arrives with a second bill: fit-out, machinery, racking, vehicles. Rolling short-life assets into a long property loan is usually poor matching — you can end up paying for a fit-out long after it is replaced. Asset finance funds equipment against the equipment itself, on terms matched to its working life, and keeps your property borrowing capacity intact. If broader working capital is the pressure point, that is a separate conversation again — see our business loans page.
Commercial deals run slower than residential ones. Valuations are ordered from specialist valuers and commonly take weeks rather than days; credit assessment is more bespoke; and legal due diligence — leases, planning, environmental issues for some sites — takes longer. Six weeks from application to settlement is a sensible planning figure, and complex or specialised properties run longer. Size your finance clause accordingly, get your financials and entity documents ready before you offer, and involve your solicitor and accountant early rather than at the deadline.
An owner-occupier purchase touches lending, structuring and tax at once, and the lender that suits your industry, entity and property type is rarely obvious from the outside. Apply online or get in touch and we can pre-assess your borrowing position before you start inspecting buildings — it makes every later step easier.
There is no universal answer. Buying suits mature businesses with stable space needs — rent becomes repayments, you gain control and build an asset. Renting preserves capital and flexibility for businesses still growing or changing shape. Model both paths with your accountant, including the opportunity cost of the deposit, before deciding.
More than a residential purchase, in general terms — commercial maximum LVRs are typically lower than home-loan LVRs, there is no LMI to stretch a small deposit, and specialised properties are geared more conservatively again. Budget for the deposit plus transfer duty, legals, valuation and lender fees, and get a pre-assessment before making offers.
They assess your business instead — financial statements and tax returns, existing commitments, and whether profit comfortably supports the repayments. The rent you currently pay is usually added back, since it disappears once you own. Expect director guarantees and a specialist commercial valuation as part of the process.
Often yes — commercial transactions frequently attract GST, and even where a GST-registered buyer can claim it back, the amount usually has to be funded at settlement because lenders do not automatically finance it. Some sales qualify as a GST-free going concern under strict conditions. Confirm the treatment with your accountant before exchanging contracts.
Potentially — business real property is one of the few assets an SMSF can acquire and lease back to a member's business at market rent, and limited recourse borrowing arrangements remain available under superannuation rules as at July 2026. But the rules are strict, lender choice is narrower, and compliance obligations are significant, so take specialist financial, tax and legal advice before committing.
Usually not. Fit-out and equipment have much shorter working lives than the property, and rolling them into a long property loan means paying for assets long after they are replaced. Asset finance funds equipment against the equipment itself on matched terms, and preserves your borrowing capacity against the property.
This article is general information only and doesn't consider your personal objectives, financial situation or needs — it isn't personal credit advice, and lending criteria, rates, fees and government schemes change. Before acting, speak with a licensed MakeMyLoan broker or credit representative who will assess your circumstances and provide a credit guide before any credit assistance is given.
