Archives for June 2013

Never Cross Collateralize Your Loan Arrangements

Cross-Collateralizing-2
Part 2: Proper Loan Structuring can give you Protection.

LAST TIME (in Part 1), you discovered why the banks should not be allowed to call the shots. And perhaps a couple more Case Studies will help to further explain that.

Let’s take a look at what happened “Kevin”

He was a very successful property investor who had an impressive portfolio, consisting of several residential and commercial properties.

Kevin was able to build this portfolio through a mixture of a good knowledge of the market, savvy negotiating skills, a high-income job with a resources company and, it has to be said, some luck in picking the trends.

Kevin’s problem was that he wanted to retire early — which is something someone of his net worth should easily be able to do. But he made one major mistake. [Read more…]

Commercial Property Investors are Relishing the Current Drift

Confusion
EVER SINCE Julia Gillard announced the September election in February … the ensuring political hiatus has meant almost everything (including our thinking) has simply been moving sideways.

Neither up, nor down … just drifting!

And that is completely understandable — because, when uncertainty reigns … people tend to do nothing.

What are the Experts saying? [Read more…]

Be Aware of Your Obligation to Maintain and Repair!

Landlord-Repairs
AN OFTEN contentious issue in Retail tenancies: Who has the responsibility for maintenance and repair to the leased premises?

Is it the landlord? Or, as many landlords believe … the tenant?

Disputes relating to maintenance and repairs are the third most common type of dispute referred to the Small Business Commission in the past twelve months — highlighting the importance of landlord’s awareness of their obligations. [Read more…]

Office Market Dynamics in the Most Liveable City

CBD-Offices
MELBOURNE’S IDENTITY as the World’s Most Liveable City owes much to the transformation of its Central City over the past two decades — into a series of vibrant projects, places and precincts. And these offer an interesting mix of … housing, offices, retail, entertainment, tourism, dining, civic and cultural opportunities — where there are concentrations of people wanting to live, work and play.

Whilst the development of apartments has been transformational for the Central City, this segment is about to enter a phase of historic high supply (2013-2015) as well as unprecedented levels of “internationalisation” of the product, developers and capital associated with this market. [Read more…]

Maximise Your Tax Benefits on Commercial Property

WomanPainting
WHEN INVESTORS purchase a Commercial property, they will often consider renovating the property after settlement. Especially, if it is an older property in need of a face-lift before tenanting.

By renovating your Commercial property, you can create additional equity and generate extra rent in the process. But the real benefit is that you can also claim thousands of dollars in depreciation deductions — whenever renovations are done to your property. [Read more…]

Due Diligence: 5 Key Issues to Verify + Questions to Ask!

Due-Diligence
WHENEVER YOU embark upon a physical Due Diligence for any Commercial property, there are five key issues on which you should focus. And all of them need to be fully explored.

Depending on the size and type of the building, you may well require a more-detailed analysis. But for the time being, this will provide you with a basic checklist. [Read more…]

Never Cross Collateralize Your Loan Arrangements

Cross-Collateralizing
Part 1: Don’t be easily Swayed by your Bank.

A COMMON piece of advice given by mortgage brokers to Commercial property investors — at least, by astute brokers — is to keep securities for each loan separate. In other words, any form of Cross Collaterization (as it’s known) is to be avoided at all costs.

So, just what is Cross Collaterization; and why is it so bad?

Put simply, it is the combining of one mortgage registered against two or more properties (or sometimes even your business) as security. [Read more…]

5 Common Myths About Commercial Property

Myths
HERE ARE several common misconceptions I frequently hear, when people are looking to embark upon Commercial property investing.

1. Securing Commercial properties using the internet is easy.

There are some people starting out in who feel they don’t need any professional help with this. But finding a suitable property is only half the task.

The other half involves properly assessing the property — both physically and financially. Then you have to package up the deal that’s best for you.

And this is where having a top consulting team (for the property, legal, finance & construction aspects) is worth its weight in gold. [Read more…]

Where There’s a Will … There’s a Way

Wills
TO DIE “Intestate” is to die without having made a Will. That means the distribution of your estate would then be in accordance with the law, and potentially against your wishes.

And that’s because, without a Will to provide a clear allocation of your assets and property … estates are divided according to the applicable state or territory legislation.

The legislation provides for the distribution of an estate in light of considerations such as … whether the deceased leaves any partners, children, living parents, brothers, sisters, or children of brothers and sisters. [Read more…]

Industrial Property Starts to Makes Sense

Industrial-Property
INTERESTINGLY, the Industrial property market in metropolitan Melbourne still remains the largest in Australia.

The market has evolved significantly over the last two decades — largely underpinned by the strong growth in supply chain sectors (ie: the transport, logistics and distributions sectors).

In addition, there has been significant infrastructure investment, population and workforce growth … along with the entry of major institutions and developers. [Read more…]

Commercial Property Owners Could Be Saving $’000s in Depreciation

OfficeExterior1
COMMERCIAL building owners still remain unaware of the full taxation benefits their property could generate. One of the most worthwhile (yet often missed) deductions available is building depreciation.

As a building gets older and items within it age, they depreciate in value. The Australian Taxation Office (ATO) recognises this and allows property investors to claim deductions relating to the wear and tear on buildings and the fixtures and fittings within.

Claiming depreciation is the key to increasing the cash flow you generate from your Commercial properties. [Read more…]