(03) 9720 2922

Jansen Walsh and Grace

  

 



What we do
Our firm has 35 years’ experience, first as Jansen Walsh & Associates, and during the last 30 years as Jansen Walsh & Grace.    We have another page with additional information on buying investment properties.  We have also another page with additional information if your superannuation fund is buying the property.  We can assist you in selling your commercial property or purchasing one.

Tracking the progress of your settlement
We can reduce the stress of buying and selling your commercial property by instantly updating you on the progress of your property settlement (we cannot do this yet if you are borrowing and the vendor insists upon using the almost obsolete old-fashioned method of meeting face-to-face in the city).




GST
The main issue is whether the property is being sold as a going-concern and how to treat GST.  The existence of a retail or other commercial lease is also important, since it is important to clarify whether the transaction includes the reversion under the lease.

Effect of the royal commission into banking industry
Since 1 May 2018, we have seen the banks' credit departments take much longer to approve loans, and, in addition, they are now applying stricter lending criteria.  This is a consequence of the hearings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.  For this reason, we advise you to consider whether you should make your purchase subject to finance for a period longer than the usual 10 days (often a vendor of a commercial property will not sell subject to finance) and to extend the time for settlement until 60 days.  The usual 30 days might not be time enough for your lender.


Withholding GST
The purchaser will have to pay one-eleventh (or 7% for margin schemes) of the sale price to the Australian Taxation Office where settlement of a Contract of Sale of land which occurs on or after 1 July 2018, even if the contract was entered into before that date, but subject to the exception for existing contracts entered into before 1 July 2018 where settlement takes place before 1 July 2020.  The vendor is entitled to a GST credit for an amount withheld by the purchaser from the contract consideration but only if and when the purchaser pays the withheld amount to the Commissioner.

Land transfer duty and transfer registration fee
If you are borrowing to fund part of the purchase price, your lender will calculate the land transfer duty and the transfer registration fee.  However, you can calculate the land transfer duty and the transfer registration fee, if you wish.  It does not deal with off-the-plan purchases.