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  1. #1

    Question Commercial 'warehouse' to also live in?

    Hi everyone,

    I'm new here, just registered a couple of minutes ago!

    I have an opportunity to buy a commercial building, it's like a warehouse. I'm considering to buy it for my family business, but also to live in it.

    Any gotchas? E.g.: do councils usually allow that? Obviously I will have to do some renovation to make the place comfy.

    Thanks,
    Jack

  2. #2
    Join Date
    Nov 2011
    Posts
    445

    Default

    I am not an expert in this area, but you more likely will need building permits, zoning variance, Certificate of Occupancy and etc. I recommend you to consult with professionals. Oh, you might also need an architect as well to renovate your warehouse into residential property. I googled around and found this http://freshome.com/2011/10/20/old-w...ar-urban-home/. The couple renovated a warehouse into a family home. It looks so amazing!

  3. #3
    Join Date
    Apr 2009
    Posts
    972

    Default

    The landlord may help you out with the costs but the time council takes could be more an issue

  4. #4
    Join Date
    Nov 2009
    Location
    North Shore Auckland
    Posts
    565

    Default

    The cost of electricity is one gotcha that many folk get caught by.....rates for power tend to be considerably higher for commercial than for domestic

  5. #5
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,876

    Default

    There are pros and cons. Some aspects depend on
    how rabid the local bureaucrats are.

    There are lots of situations like these. If it's no too
    obvious (even largely concealed) then a blind eye is
    usually used. I've seen people knock up what might
    be called partitioned areas in pack houses to use for
    residential reasons. Most are not indefinite, of course.

    I've also seem people put up 'sheds,' with facilities,
    on farm or lifestyle lots, then move in for a few years
    while they build a house.

    The electricity thing can cut both ways. I.e. no hot
    water 'blackouts.'
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  6. #6
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,604

    Default

    There are also tax/GST issues.

    Normally for a commercial building you can claim GST on the purchase or have it zero rated. If a portion of this building is private, then you will not be able to claim GST on this portion.

    With expenses you will be able to claim a % of rates, insurance, interest etc.

    It is important to work out the area's used for business vs private carefully.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  7. #7
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,604

    Default

    Also ownership structures.

    Normally you would want your building owned in a seperate entity to your business.

    If the building is your personal home as well, then Companies, QC and LTC's don't really work. So this would leave you with a Trust or personal ownership (sole trader or partnership).

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  8. #8
    Join Date
    Nov 2008
    Location
    Karratha WA
    Posts
    1,444

    Default

    As Rosco says, you will need to divide the bills by a percentage.

    There are also a lot of hoops to jump through regarding fire rating the shared wall etc, and ongoing compliance checks at your expense.

    But it's not impossible, and could work out well for you. Check it out with the Council before you buy, and get their reply in writing.

  9. #9
    Join Date
    Dec 2010
    Location
    Cambridge, NZ
    Posts
    1,375

    Default

    All good advice above. Sound rating walls for residential is another issue Council is likely to raise. Sometimes people just do it without involving council....but they do tell their insurance company if they're wise. Don't want them declining coverage when your toaster burns the place down.

  10. #10
    Join Date
    Aug 2010
    Posts
    100

    Default

    Insurance companies should and will rightfully decline if you do not obtain a building permit and later a CCC to do a residential conversion. Without a CCC its too big a risk
    so consider your warehouse uninsurable without it


 

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