Industrial Purchase Calculator

How the Harrison Food Building calculator arrives at its figures

The calculator starts from the price before GST and applies your own funds first, up to whatever is actually due during the option and Sale & Purchase period. The bank then funds the remainder up to the loan you have selected. At 80% the bank funds every construction instalment in full and you cover the 20% due upfront. At 90% the bank draws the excess at completion of the sale, once the mortgage is in place — the statutory schedule governs what you owe the developer at each stage, not who supplies the money. Below 80% the loan runs out before the last stages, and those instalments revert to cash; the schedule shows this in the "Your cash" column rather than quietly over-drawing the loan.

Buyer's Stamp Duty is computed on the price excluding GST, on the commercial scale that tops out at 5%. Interest during construction is charged only on what has been drawn so far, which is why the repayment column climbs stage by stage rather than starting at the full instalment.

What governs the loan-to-value available at Harrison Food Building

There is no fixed regulatory ceiling on lending against industrial property, so each bank sets its own limit and the limit is use-driven. An operating company buying the unit to occupy it is treated most favourably and may be offered up to around 90%; a purchase held for investment is usually nearer 80%. A borrower already carrying a housing mortgage can find the figure falls considerably further. Tenure commonly runs to 25–30 years, and a freehold title such as this one avoids the tenure haircut that lenders apply to a unit with a short remaining lease.

One point matters before you model anything: many banks will not lend to an individual purchaser for a B1 or B2 industrial unit and prefer the purchase to be made through a company, often an investment-holding company. This affects whether a loan is offered at all, not merely its size. The Total Debt Servicing Ratio applies to individual borrowers, including someone setting up a company solely to hold the unit; a company with its own trading history is assessed on its financials instead. CPF cannot be used for an industrial purchase — funding is cash and bank loan only.

All figures here are indicative. Confirm with your bank, and confirm duty and tax positions with IRAS, before commitment.

When GST on a Harrison Food Building purchase can be recovered

GST at 9% applies to the purchase price, charged instalment by instalment as each stage falls due. Whether the buyer can recover it as input tax cannot be determined from the outside — it turns on the entity making the purchase, and the general guideline distinguishes two cases.

An operating company — GST-registered and already carrying on taxable business activities — may generally claim the GST as input tax as it is incurred through construction. A non-operating company — newly incorporated, or an investment-holding vehicle not yet carrying on taxable activities — would not usually begin claiming during construction; claims may instead start once the property reaches TOP and operating activities commence, whether that is letting the unit out as a taxable supply or running the business from the premises. Both positions are guidelines only and are subject to the rules set by IRAS.

What the Harrison Food Building calculator does not include

Fitting-out and the food-factory build-out — cold rooms, exhaust connections, production flooring, grease-trap commissioning — sit outside these figures entirely and are often the largest single line after the unit itself. Also excluded: valuation fees, mortgage duty on the loan, bank processing and facility fees, insurance, and management fees once the building is operational. For an owner-occupier there is one more cost the schedule does not show — rent still running on your existing premises alongside the progressive interest here, right up to the point you move in.

Harrison Food Building purchase calculator FAQ