Commercial Property for Business Owners in Logan, QLD, Buy Your Premises
If you're paying rent on the space your business operates from, you're building equity for someone else. Buying your own premises changes that: your occupancy cost becomes predictable, the asset sits on your balance sheet, and every dollar of principal you repay is working for the business rather than a landlord.
For business owners in Logan, QLD, the timing of a commercial property purchase matters more than most lenders let on. Whether you run a trade business out of a workshop in Crestmead, a professional practice near the Meadowbrook health and education precinct, or a retail operation at one of Logan's major centres, the lending mechanics are different from a residential purchase, and the lender panel that can help is narrower.
Our team helps business owners across Logan, QLD work through commercial property finance, comparing across 60+ lenders. The commercial property loan structure you choose has as much impact on your cash flow as the rate does.
Key takeaways
- Commercial deposits are typically 25–35%, higher than residential lending.
- Lenders assess both business cash flow and the property's income side by side.
- An owner-occupier buying their own premises is the strongest commercial profile.
Can business owners buy commercial property instead of renting?
Yes, and for an established business with consistent cash flow it's one of the most straightforward commercial loan scenarios a lender considers. The question isn't whether you're eligible - it's whether the deal stacks up on two fronts at once: your business's ability to service the debt, and the property's own income profile.
How does commercial property finance actually work?
Commercial property finance is assessed differently from a home loan. The lender looks at the property's lease or rental income alongside your business financials, not just your personal income. They want to see that the asset can support itself, and that your business can carry the debt even if occupancy changes.
The key ratio is the debt-service coverage ratio: your net operating income divided by your annual debt repayments. Most commercial lenders want this comfortably above 1.0, meaning the property generates more than enough income to cover the loan. For an owner-occupier buying their own premises, the rent you'd otherwise be paying is often treated as equivalent income - which is why that profile is the strongest in this category.
Terms are generally shorter than residential loans and annual covenant reviews are common, meaning the lender can reassess your position each year. The asset class - office, retail, industrial or specialist-use - affects both the LVR and the lender's appetite significantly.
"Most business owners come to us expecting the same process as a home loan. What changes the conversation is explaining that commercial lending runs on two assessments simultaneously - the business and the property - and that the lender wants both to hold up on their own."
Nevada Matthews · Mortgage Broker and Co-Owner, Cube Loans · Chat to Nevada →
What do you need to qualify for a commercial property loan?
Lenders assess commercial applications more manually than residential ones. There's no automated scoring equivalent - the underwriter looks at the full picture. Here's what that picture needs to contain:
What lenders typically require:
- › Business financials: two years of business tax returns, profit and loss statements, and current BAS. Lenders want to see consistent cash flow, not a strong single year.
- › Property lease or rental evidence: if the property has tenants, their lease documents. If you'll occupy it yourself, a business plan or evidence of your current rental outgoing is often used instead.
- › Deposit: typically 25% to 35% of the purchase price for standard commercial assets. Specialist-use properties - medical suites, childcare, hospitality - often require a larger deposit and attract a narrower lender panel.
- › Personal financial position: personal tax returns, a statement of assets and liabilities, and details of any existing lending, including residential mortgages.
- › Business plan (sometimes): required where the property is vacant or owner-occupied with a short trading history. It supports the income projection the lender is relying on.
What does buying commercial property cost in Logan?
The deposit is the most significant upfront difference from a residential purchase. For a standard commercial asset - office, retail or industrial - most lenders want between 25% and 35% of the purchase price. Some specialist lenders can go to 80% LVR for a strong owner-occupier with a long trading history, but that's the exception rather than the rule.
Beyond the deposit, commercial property purchases in Logan carry stamp duty at the standard Queensland rate (no first-home concession applies to commercial), legal fees for both the property contract and any lease review, a commercial valuation (which runs materially higher than a residential one), and potentially a building inspection. The lender will also charge an establishment fee and, on some products, an annual review fee.
The deposit options worth understanding:
- › Standard commercial loan: 25–35% deposit · 65–75% LVR · mainstream and tier-2 lenders · suits most office, retail and industrial assets
- › Strong owner-occupier: 20% deposit · up to 80% LVR · specialist lenders · requires consistent business cash flow and long tenure in the premises
- › Specialist-use asset: 35–40%+ deposit · 60–65% LVR · narrow lender panel · medical suites, childcare, hospitality
Using equity from a residential property as part of the deposit is common and can reduce the cash you need upfront - though it ties your personal property to the commercial deal, which affects your overall risk position.
| Get in touch Need help with a commercial property loan? We're a local team who understand how lenders actually assess your situation, not just your rate. We'll compare your options across 60+ lenders to find the right fit.
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How long does a commercial property purchase take?
A commercial purchase typically takes longer to settle than a residential one. Finance approval alone can run four to six weeks, because the lender orders an independent commercial valuation and reviews both the business financials and the property documents before issuing formal approval.
The contract period is negotiable and usually longer than residential - six to eight weeks is common, sometimes more if a lease assignment or variation is involved. Build the finance clause around the lender's likely timeframe, not a residential assumption of three weeks.
If the property has existing tenants whose leases need to be novated or reviewed, add time for that legal process. A commercial conveyancer who works in this space regularly will flag those timing issues early.
When does buying commercial property not make sense?
Tying a significant deposit into property can constrain a growing business more than the rent it replaces. If your business is in a strong expansion phase and needs capital for equipment, staff or inventory, locking that capital into bricks and mortar may slow growth that would otherwise outpace the equity you'd accumulate.
Location flexibility matters too. A business that may need to move premises in three to five years - because of growth, a lease on a better site, or a change in how the business operates - is often better served renting until that direction is clearer. Selling a commercial property is slower and less liquid than exiting a lease, and the costs of a forced sale at the wrong time can exceed years of rent paid.
Specialist-use properties are also harder to exit: a purpose-built medical suite or a childcare facility has a smaller pool of buyers, and if the business changes direction the property may not suit its next owner without significant work.
"Where a business has been in the same premises for five or more years and isn't planning to move, buying almost always makes more sense than continuing to rent. The question we ask is whether the deposit will cost the business more sitting in a property than it would working inside the business. Usually the answer is no - but it's worth running through."
Nevada Matthews · Mortgage Broker and Co-Owner, Cube Loans · Chat to Nevada →
How to buy commercial property in Logan, QLD, step by step
Step 1: Talk to us
We start by working through whether the deal makes sense structurally - your deposit position, the property's income profile, and which lenders on our panel are worth approaching for your business type and asset class.
Step 2: Prepare your financials and identify the property
We'll tell you exactly what the lender needs: two years of business returns, BAS, P&L, and your personal position. While you're gathering those, your solicitor reviews the contract and any existing lease documents on the property.
Step 3: Submit and manage the commercial valuation
We submit to the most suitable lender and manage the commercial valuation process - which differs from a residential one and can surface issues that change the deal structure. We work through those with you before they become problems.
Step 4: Formal approval through to settlement
Once the valuation clears and the lender issues formal approval, we coordinate with your solicitor and the lender's team through to settlement. Commercial settlements involve more parties than residential ones, so we stay across the timeline.
What goes wrong when business owners buy commercial property?
Where purchases come unstuck:
- › Applying to a residential lender: some business owners apply through their existing home loan bank, which may not write commercial property at all or may do it on significantly worse terms than a commercial specialist. The panel for commercial lending is narrower and more varied than residential.
- › Underestimating the deposit: expecting a 10% to 20% deposit and finding the lender requires 30% - after the contract is signed - is the single most common cash flow shock in a commercial purchase. Know the number before you sign.
- › A short trading history: lenders want two years of consistent business financials. A business in its first or second year, or one that has recently changed structure, faces a materially harder assessment and may need a specialist lender or a larger deposit to compensate.
- › Specialist-use assets with one buyer in mind: buying a property that only works for your specific business use can leave you with a hard-to-sell asset if the business changes direction. Lenders price this risk in through a lower LVR and a narrower panel - it's also worth thinking through from your own exit perspective.
Frequently Asked Questions
Can I use equity in my home to fund the deposit on a commercial property?
Yes, residential equity is commonly used as part of a commercial deposit. Doing so links your personal property to the commercial deal, so the lender assesses both positions together and your overall risk exposure increases.
Is commercial property finance harder to get than a home loan?
It's assessed more manually and typically requires a larger deposit, but for an established business with clean financials it's a well-understood transaction for commercial lenders. The challenge is usually finding the right lender, not qualifying in principle.
What LVR can business owners borrow to on a commercial property?
Most standard commercial assets are funded to 65–75% LVR. Strong owner-occupiers can reach 80% through specialist lenders, while specialist-use properties often sit at 60–65% LVR with a narrower panel.
Does buying my business premises affect my capacity to borrow for a home loan later?
Yes, the commercial loan appears as a liability in your personal financial position. How much it affects residential borrowing depends on whether the property is income-producing and how lenders assess the business debt - which varies between lenders.
Is it better to buy commercial property in my personal name or a company structure?
That's a tax and structuring question your accountant should answer before you apply - the ownership structure affects stamp duty, CGT treatment and asset protection differently. The lender assesses both structures, so the financing side is workable either way.
Should I use a mortgage broker or go directly to a bank for a commercial loan?
A mortgage broker, every time. Commercial lenders vary significantly in their appetite for different asset classes and business types, and the panel a broker accesses includes specialist commercial lenders your bank may not offer.
Your Next Steps
Buying commercial premises is one of the most significant decisions a business owner makes - and the lender you approach, the deposit structure you use, and the asset class you target all affect the outcome in ways that aren't obvious until you're in the application. Getting the structure right from the start avoids the most common and costly mistakes.
The right lender for a commercial property purchase depends on your situation, and that's a conversation worth having. Talk to the Cube Loans team or call 1800 774 756, and we'll compare your options across 60+ lenders.
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External Resources
Cube Loans, Loganholme and Logan, QLD, Cube Central Pty Ltd, Credit Representative 472851, authorised under Australian Credit Licence 517192, General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
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