Commercial Property

Buying commercial property in Wānaka

Start with the purpose of the purchase. A building for your own business needs to work operationally; an investment needs a clear understanding of the lease, property costs and risks to income. The same premises can be a good fit for one buyer and a poor fit for another.

Owner-occupier or investment?

If you plan to occupy the premises, set out what the business requires before assessing individual properties. Consider permitted use, floor area, layout, storage, loading, parking, customer access, staff facilities, signage and the work needed before opening. Check whether the location and configuration support your business, rather than assuming that a central address or a large floor plate is enough.

If you are investing, look beyond the advertised rent or yield. Have your advisers review the actual income, outgoings, maintenance commitments, lease terms and potential periods without rent. A quoted return is meaningful only when its assumptions and the costs excluded from it are understood.

Read the lease with the building

Where a tenant is in place, obtain the signed lease and associated variations, renewals and relevant records. Ask your lawyer to explain the remaining term, renewal rights, rent reviews, guarantees, assignment provisions, repair obligations and how costs are allocated. Check who owns the fit-out and what must happen when the tenancy ends.

Establish the difference between the amounts shown in marketing material and the amounts supported by the documents. Ask for a clear breakdown of property outgoings and any items the owner pays. If a property is vacant, investigate the likely work, approvals and time needed before a new occupier can use it.

Check that the intended use is possible

Have a planner or the relevant council team confirm the planning position for your exact proposal. A previous business in the premises does not automatically establish approval for a different use, altered hours, new signage or additional activities. Discuss any proposed fit-out or change of use with the appropriate building professionals before treating it as straightforward.

Review the title, easements, shared facilities and any body corporate arrangements with your lawyer. Shared parking, access lanes, service areas and building systems can have practical and financial consequences that are not obvious at a viewing.

Review building condition and compliance records

Arrange inspections suited to the age, construction and use of the building. Ask about the roof, structure, services, accessibility, fire-safety systems and any significant work expected. Request relevant consent and code compliance records, and investigate any gaps with your advisers.

Where a compliance schedule and building warrant of fitness are required, review the actual documents, specified systems, inspection records and owner responsibilities. QLDC’s building-services guidance explains the building warrant of fitness system. Obtain specialist advice on earthquake-prone status, seismic assessments or strengthening requirements where relevant; do not infer these from the building’s appearance.

Allow for the whole transaction

Ask your lender about its requirements for the specific building, use and lease position. Budget for professional advice, investigations, insurance, fit-out, maintenance and holding costs as well as the purchase price.

Have your accountant advise on the ownership structure and GST treatment before you sign. Inland Revenue explains that property transactions can have different GST outcomes depending on the circumstances and recommends tax advice before the paperwork is signed. Read IRD’s property-transaction guidance. The advertising description is not a substitute for advice on your transaction.

Make the offer reflect your investigations

Work with your lawyer on the agreement, conditions, information required and timing. Identify who will obtain each report and what must be resolved before you commit. If a trading business is included, its accounts, assets, licences and operating arrangements require their own investigation alongside the real estate.

Discuss the right property information

Ray White Wanaka’s established services include commercial real estate. Tell us whether you are buying for your own business or as an investment, and what the premises need to do. We can discuss relevant opportunities and the information available for your advisers to review. Browse our current properties, call 03 443 8912 or use the form below.