Understanding Commercial Property Finance for Medical Centres
Purchasing a medical centre represents a significant investment opportunity for healthcare professionals and property investors alike. Whether you're a GP looking to establish your own practice or an investor seeking stable rental returns, securing appropriate commercial finance is crucial to making your purchase successful.
Medical centres offer unique advantages as commercial property investments. They typically provide steady rental income from healthcare tenants and often appreciate in value due to their specialised nature and community importance. However, buying commercial property requires careful consideration of loan structures and financing options.
Commercial Loan Options Available
When applying for a commercial loan to purchase a medical centre, you can access Commercial Loan options from banks and lenders across Australia. The variety of lenders means different loan structures and terms are available to suit your specific circumstances.
Key loan types include:
• Secured Commercial Loan: Uses the medical centre as collateral, typically offering lower interest rates
• Unsecured Commercial Loan: No collateral required but generally higher interest rates
• Progressive drawdown: Funds released in stages, useful for renovations or fitouts
• Revolving line of credit: Ongoing access to funds up to an approved limit
Interest Rate and Loan Amount Considerations
The interest rate you receive depends on several factors including your financial position, the property's location and condition, and current market conditions. Medical centres in established areas like Kew often attract favourable lending terms due to their stable tenant demand.
Loan amounts typically range from $500,000 to several million dollars, depending on the property value and your borrowing capacity. Most lenders will finance up to 70-80% of the property's value, meaning you'll need a deposit of 20-30%.
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Book a chat with a Mortgage Broker at AXTON Finance today.
Flexible Loan Terms and Repayment Options
Modern commercial finance offers flexible loan terms tailored to your business needs. You can choose between:
• Variable interest rate: Rates fluctuate with market conditions
• Fixed interest rate: Locked rates for a set period, providing certainty
• Flexible repayment options: Principal and interest or interest-only periods
• Redraw facilities: Access to additional repayments when needed
These options allow you to structure repayments around your cash flow, whether you're expanding business operations or purchasing the property as an investment.
The Application Process
The streamlined application process for commercial property finance typically involves:
- Initial assessment: Review your financial position and loan requirements
- Property evaluation: Lender assessment of the medical centre's value and income potential
- Documentation: Provide financial statements, tax returns, and property details
- Approval and settlement: Final approval and property transfer
Having experienced brokers guide you through this process ensures you present your application effectively and access suitable lending options.
Benefits Beyond Property Purchase
Commercial loans aren't limited to property purchases. Once established, you might use commercial finance for:
• Buying new equipment for tenant requirements
• Upgrading existing equipment and facilities
• Expanding business operations
• Buy commercial land for future development
• Buy an industrial property to diversify your portfolio
This flexibility makes commercial loans valuable tools for growing your property and business interests.
Working with AXTON Finance
At AXTON Finance, we understand the unique requirements of medical centre purchases. Our team works with you to identify suitable lenders and loan structures that match your investment goals and financial capacity.
We assist with the entire process, from initial loan structuring through to settlement, ensuring you understand all aspects of your commercial finance arrangement. Our relationships with multiple lenders mean we can present various options and help you select the most appropriate solution.
Call one of our team or book an appointment at a time that works for you. Let AXTON Finance help you secure the right commercial loan for your medical centre purchase.