Finance question
Can I get finance to buy a post office?
Yes. A licensed post office sold with its freehold is funded as commercial property with the business on top, and that is the easier end to finance. A business-only post office is priced on earnings, so buyer equity or property backing carries the goodwill gap. Prices run roughly $400,000 to $2m plus, with freehold packages toward $3m, subject to lender assessment.
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The short answer
Freehold is the bankable end, the licence is the part to read
A licensed post office, or LPO, is a private business running under a licence from Australia Post. About 2,900 of Australia's post offices are LPOs, two-thirds of the network, so the resale market is deep and always turning over. Lenders like the income because it is government-anchored, but they value it as they would any goodwill: on earnings, not turnover. The guide prices an LPO as a multiple of net profit after a fair owner's wage, and that is the number a lender will rebuild from the vendor's books.
What you pay decides how the finance is built. Listings in our guide include an LPO with freehold and residence in regional Tasmania at $415,000, an LPO plus freehold in regional South Australia at $725,000 combined, and an LPO business plus freehold in regional NSW at $1.35m combined, against a wider market of roughly $400,000 to $2m plus (post office guide). Where the freehold is included, the property carries standard commercial lending and the business rides on top. Business-only LPOs go the other way: priced on earnings with goodwill funding limits, so buyer equity or property backing covers the gap.
Two checks come before the money. First, commission rates are set per site in the licence agreement, so two identical-looking post offices can earn differently, and a lender will want the licence read alongside the books. Ask Australia Post what it requires to approve a new licensee before you sign, because the licence is the asset you are buying. Second, many LPOs trade beside other income, such as a newsagency or a cafe, and stock is often paid on top at settlement, as in the outer Melbourne LPO and cafe at $900,000 plus stock. A broker across 40+ lenders can split those parts so the freehold carries the most, with no upfront fee to you.
Do you qualify?
What a lender looks at on a post office purchase.
The licence agreement
Commission rates are set per site, so lenders read it with the books.
Earnings after a fair wage
Net profit after an owner's wage, not turnover, sets the value.
Freehold included?
Property in the deal gives the lender real security under the business.
Deposit or equity
Savings, or equity in your home, covers the goodwill gap.
Why post offices are bankable
Government-anchored income
Australia Post fees and commissions give a lender steady revenue to assess.
Freehold packages
Land and buildings sit under the loan, with the business on top.
A deep resale market
About 2,900 LPOs trade, so there are plenty of comparable sales.
A worked example
A buyer targets the regional South Australian LPO with freehold, listed at $725,000 combined. Suppose the lender values the land, buildings and business at that figure and advances $470,000. The $255,000 gap, plus stamp duty and costs, comes from $90,000 of savings and $165,000 of equity in the buyer's home, so both loans settle on the same day. Illustrative only.
Common questions
Frequently asked questions
How much does it cost to buy a licensed post office?
Listings in our guide run $375,000 to $1.3m plus stock, with the wider market at roughly $400,000 to $2m plus and freehold packages toward $3m.
Is a post office with freehold easier to finance?
Usually yes. The property carries standard commercial lending and the business sits on top. A business-only LPO is priced on earnings and needs buyer equity or property backing for the goodwill gap.
What do lenders check on a post office?
The licence agreement as well as the books, because commission rates are set per site. They also look at net profit after a fair owner's wage, and at whether freehold is included.
Can I use my home to fund the deposit?
Often yes. Equity in your home or another property can cover the deposit or the goodwill gap. It is subject to valuation and lender assessment.