Archives for April 2014

Commercial Property and Interest Rates

Commercial Property + Interest Rates

THE RBA RECENTLY confirmed a neutral bias, when it announced its latest decision to keep the official interest rate on hold.

Inflation appears to be relatively steady — and still well within the RBA’s stated band for comfort.

Furthermore, the feedback from the Residential market is that house prices in Sydney and Melbourne now appear to be levelling out.

The RBA was keen to see the Residential market slow somewhat. However, if that doesn’t remain the case, it may need to look to increase in interest rates. [Read more…]

Raise Commercial Property Cash Flows Now, or Later

mid-adult couple meeting with financial planner

THE AUSTRALIAN Taxation Office (ATO) allows you, as a Commercial property owner, to choose between two methods of claiming depreciation on the fixtures and fittings within your investment properties.

These are the Diminishing Value and the Prime Cost methods of depreciation. [Read more…]

Commercial Property Loans For Pro Investors: Part 2

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LAST WEEK, I covered the reasons why it can be very difficult for asset-rich investors (who are no longer working or have scaled down their working) to get a loan.

Thankfully to date, the NCCP regulations do not apply to loans acquired for a commercial and business use.

Therefore, you have more options for investing using commercial borrowing, then you do for residential borrowing. The following tips will help you maintain your eligibility to borrow for longer, after stopping work. [Read more…]

Commercial Property Loans For Professional Investors

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YOU’VE WORKED HARD your whole life; and had a successful career. You have used your money wisely, and your investments have been mostly successful.

As a result you have built up a solid asset base with a number of properties, which are positively geared and provide you with reliable rental income.

It is now time to enjoy life, scale down your workload, travel and do the things you always wanted to do.

You stumble upon the perfect Commercial property opportunity that will provide you with enough rental income to have the lifestyle that you want. [Read more…]

More on Commercial Refurb: 4 Steps to Ensure Success

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IN PART 1, we covered the first two Steps required to make sure your refurbishment project is tailored to the building and to make sure it comes in on budget.

This article will now explore the next two things you need to fully address, to ensure your refurbishments are a success. [Read more…]

Residential and Commercial Property Cycles

Investment-Cycles

WHERE ARE WE right now? And what actually determines the Cycles for each sector?

As it happens, most people believe every sector is quickly affected by interest rate movements. Whereas, that’s not strictly true.

And where interest rates do have an effect … the actual timing of that also varies. [Read more…]

Commercial Refurbishments: 4 Steps to Ensure Success

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WHEN IT COMES to Commercial property refurbishments, it pays to take a close look at the existing building and give the clients more than they are expecting: more insight, more information and better value.

This article covers the first two (of four) key steps, which will make sure that your refurbishment goes smoothly. [Read more…]

More About Consent for Lease Assignments

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IN PART1, we considered assignment in the context of where the lease prohibits assignment absolutely or where the tenant cannot assign without the landlord’s consent (to be withheld in its absolute discretion).

This article considers assignment when the landlord cannot unreasonably withhold its consent. [Read more…]

Don’t Get Caught Out By This Unfortunate Tax Anomaly!

Tax-Anomoly

THERE IS A VERY poorly thought out anomaly in our tax system.

It affects families (in the main), retirees (call it a death tax) and other taxpayers alike — especially the NOT self-employed. [Read more…]