Get Industrial Property Loans from 5.95% - 8.20% and 60% - 80% LVR

With a 20% deposit, you’re looking at 80% LVR which is typically only available for prime industrial estates or some owner-occupier scenarios. Most industrial properties like factories and sheds require 30% deposit (70% LVR). For a $1.5 million factory, you’d need $450,000 deposit minimum, though if you are an owner-occupier we might be able to access better terms.

Poor credit definitely limits your industrial property finance options. The major banks usually say no if you’ve had defaults over $5,000 in the past 2 years. We work with non-bank and private lenders who might consider your application but you’re looking at higher rates (9-12%), lower LVR (50-60%), and shorter loan terms. Talk to our team to see what might be possible.

If it’s an investment industrial property, you don’t necessarily need a business plan, but we definitely do need tenant lease agreements. For owner-occupier applications, I always recommend including your business financials and cash flow projections – it helps. Unlike other brokers or lenders, we can prepare your business plan and cash flow projections for you as part of our application services. If you’re developing or constructing industrial properties, you’ll definitely need detailed feasibility studies.

Industrial property loans tend to have stricter environmental requirements, and we need to check zoning compliance more carefully than with offices or retail. LVRs are usually more conservative (around 65-75% versus 75-80% for prime commercial). We may also need to consider things like clear span, power capacity, and truck access that don’t apply to standard commercial properties.

Yes, your SMSF can purchase industrial properties with specialised SMSF commercial loans. Maximum LVR is usually 70% for industrial. You can lease the property to your own business at market rates, but we need to follow strict arm’s length rules. You’ll need that 30% deposit sitting in your SMSF plus funds for all the purchase costs.

Standard industrial property loans take anywhere from 7-28 business days for approval depending on the lender we choose to go with. If we’re dealing with environmental assessments, it can stretch to 4-6 weeks. We can arrange fast-track private lending (bridging finance) that approves in 48-72 hours, but it’ll cost you more.

Vacant industrial properties are definitely harder to refinance and might breach your loan covenants. Most lenders want to see at least 65% occupancy. You’ll need to show you can cover payments from other income. I’d suggest negotiating a grace period with your lender while we find new tenants.

Yes, interest on investment industrial property loans is normally tax deductible (not financial advice – talk to your accountant). If it’s owner-occupied, you can’t claim deductions unless you’re leasing part of the property to others. You also get depreciation benefits on industrial buildings and fit-outs. I always recommend checking with your accountant for your specific situation.

Major banks typically go up to $10-15 million for average industrial properties. If you need more, we’re looking alternative lenders. Private and non-bank lenders can go beyond $50 million for substantial industrial estates. How much you can actually borrow depends on your income, existing debt, and the quality of the property.

You’re looking at establishment fees of 0.5-1% (so $5,000-10,000 on a million dollar loan). Valuation fees run $2,000-5,000 for industrial properties. Legal fees add another $2,000-4,000. Annual fees might be $500-1,500. Private lenders charge higher establishment fees (1.5-2.5%) but sometimes have fewer ongoing charges.