Buying, rather than leasing a business premises is like buying a house – you'll need to do your property inspection, sign documents, organise finance and insure the premises.

You'll also need to make sure it's in the correct business zone, is a safe workplace and is built and modified with the correct planning and building permits.


Some of the advantages of buying a premises rather than leasing one include:

  • if the property becomes a major business asset, you can grow the business by borrowing against your equity
  • enjoying the benefits of capital growth and security of tenure
  • having no landlord – you control how the property is developed
  • claiming depreciation of fixtures and fittings
  • using the asset as part of your superannuation scheme


With the freedom of owning the premises and not having a landlord, the disadvantages include:

  • the premises fit-out and set-up costs are usually higher than leasing premises
  • your ability to borrow money is subject to changes in interest rates
  • not having a landlord means you take full responsibility for expenses, including rates and repairs
  • banks usually want a personal guarantee which puts assets at risk, such as the family home
  • if you have to relocate, selling the premises could be difficult

Check the planning and building permits, and zoning

When you're considering a property to buy, you should check the planning zones and overlays.

Learn more by reading our page on permits, zoning and approval.

What is a property certificate?

Property certificates provide really essential information. Buyers, sellers and developers use property certificates to verify things like:

  • ownership
  • land and building dimensions
  • zoning
  • heritage listing
  • permits issued by the local council

You can order property certificates from the Victorian Government's Landata website.