We regularly sell factories and warehouses to owner-occupiers. The typical bond period granted by financial institutions is 10 years. Owner occupiers typically borrow between 70 to 75% of the property’s value.
Generally, owner occupiers take a long term view and their purchase is driven by the wish to control their rental overhead and create a property investment whereby they can benefit in terms of capital gains.
Businesses that need to invest large amounts of capital into their property for operational purposes such as manufacturers, prefer to be owner-occupiers as they face expensive relocation costs if they cannot on agree on lease renewal rentals with a landlord.
Whilst there are definite exceptions and a strong argument for capital being better employed in the business, we have seen people creating substantial property portfolios by owner occupying their properties. Later on, when they wish to retire, they sell the businesses and retain the properties as an income producing investment with the businesses they have sold to being their long term tenants.
If you are looking for an owner-occupier property, contact us well in advance, as we often get to know about properties well in advance of them coming to the market onto the market.