I’m 25, debt free, partner owns house. Should I buy an office? I work 3 days p/wk at the moment. Its 110K?

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My partner bought his first house in January and we havent had any trouble making the repayments on his wages alone. I recently graduated with my BHSc but even so my nett income is only around 2500p/month at the moment. I’m thinking about buying a small (tiny!) office in a trendy area for 92K and to start consulting from there 2 days per week and keep my current part time jobs as well. I’ve never had any credit besides my HEX and don’t have a deposit. Is it even possible for me to get a loan? What do you think? I have a feeling that the room might be difficult to rent so if the consulting doesn’t work out I’d have to sell or hold as an investment. I’m in Australia so I’d love to hear replies from people who have a good knowledge of the commercial real estate situation here. Would I qualify for any first home buyer or stamp duty benefits? What would the total loan amount need to be to cover all the fees, charges, taxes etc? I would also need 5-7K for equipment. Is it a mortgage , a business loan or what? It may be relevant that my name is not on the mortgage for our house and I have no debt whatsoever, but no deposit – what are my options? Thanks.
I completely understand what you’re saying. In my consideration of that situation (my partner being unable to work), I have placed a lot of emphasis on the potential capital growth of the properties. I think I need to do far more local research of this topic. I just personally know several people who rent out office spaces and they end up losing most of their profit to it. And when they move they lose a huge chunk of client base. If I were to buy a cheaper space that I can currently afford to pay off using my wages from my permanent and overhead free jobs; at least I have a chance of recouping my money through sales of the properties and/or income from the business. Whereas if I rent it is lost forever. But I also concede that I need some more experience before I dive off by myself. It’s frustrating.

  1. Reply
    Nick F.
    May 2, 2011 at 2:56 am

    I’m not in australia so I can speak for specifics but I can give you my 2 cents about the concept. I don’t think it makes any sense to be quite honest. What you are trying to do is buy a 92k office for a business that doesn’t have any income or even exist yet. Also, this office isn’t even for a full-time business, its only 2 days per week. You should build a client base first and have steady income in this business before you go an make such an investment. If you need to meet with a client in the meantime, offer to visit their place of business. If you are dead set on not visiting them, try renting office space or conference rooms for the day or by the hour. I know there are a number of office sharing type options here in the States so research it in Australia.

    Also, even though your partner is able to make the payments now, saving for a rainy day is not the worst thing to do. If he should loose his income for any multitude of reasons, you will both be stuck with a tiny office, a house you cant afford to pay, and no real savings…a nightmare in the making.

    Hope this helps!! Best of Luck!!

  2. Reply
    May 2, 2011 at 3:46 am

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