What other factors will lenders consider when evaluating commercial property loans?Ĭompared to home loans, commercial property loans have a unique set of rules and factors that affect how much you can borrow. In this case, the maximum amount you can borrow for a million-dollar commercial property is $588,095 and the minimum required deposit is $411,905.Ģ. You can use this figure to help you make a decision around investing in a commercial property. The yellow field in the table above shows you how much you can borrow with a deposit. Rental yields between 6.5% and 8% are fairly typical from commercial property, whereas a rental yield from an Auckland residential property can be less than 4%. New Zealand commercial property typically offers higher rental yields than residential property. By simply inputting these figures into our borrowing power calculator, you will know your rental yield is 6.5%. Calculating the rental return on your commercial properties is something you cannot overlook.įor example, say you purchase a million-dollar commercial property and the estimated yearly lease income is $65,000. When it comes to investing in property, it’s crucial to consider your rental yield. You can find the yearly lease amount in your lease agreement. Tenants in New Zealand commercial properties often cover ongoing expenses such as property rates, insurance, water and power bills. Please note that, when entering the yearly lease income, you should exclude outgoings and GST. Enter the purchase price and yearly lease income, and you’ll get an idea of how much you can borrow. Our commercial property borrowing power calculator is easy to use. Check how much you can borrow with our borrowing calculator What other factors will lenders consider when evaluating commercial property loans? - 03:07ġ. Check how much you can borrow with our borrowing calculator - 01:04Ģ.
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