How to Conduct In-depth Investment Analysis?

WHEN IT COMES to in-depth analysis of Commercial properties, it is obviously far more complicated than a simple rating system.

That’s because you actually need a sophisticated piece of software – of which there is a number out in the marketplace.

But you’ll find most of them seem overly complicated … are not very user-friendly … and tend to generate endless pages of output data.

There are about 20 Key Items involved.

So, let’s quickly run through these various items. [Read more…]

Depreciation Tips for Commercial Property

UNDERSTANDING COMMERCIAL DEPRECIATION can sometimes be difficult, but luckily you are able to get some expert advice right here from the BMT team. 

And the good news is … you don’t need to know everything. That’s why you engage a specialist – to help you claim the maximum deductions. [Read more…]

Your Key Steps When Packaging a Deal?

IT’S ALWAYS INTERESTING to discover some Commercial property investors still feel contracts there’s a need to include a “subject to finance” clause – so they can check whether or not funds will be available. 

However, they are in fact approaching things from the wrong angle. You see, you don’t need your finance approved before entering into a deal. [Read more…]

How Important is it to Have An Investment Strategy?

AS IT IS WITH ANY INVESTMENT you make – be it shares, property or collectables … you need to know where you are heading. Plus, also ensure you have a solid foundation upon which to base all your decisions.

So, clearly, the answer to this question is: “Very important!” And probably more so, when you’re considering a commercial property. [Read more…]

Should You Engage a Property Manager?

AS YOU CAN IMAGINE, this is a question I often get asked.

So, let me perhaps start by saying that with all my properties … I, personally, engage a skilled property manager.

And people then ask … If you know so much about commercial property, why don’t you manage the properties yourself?

The answer’s fairly straightforward – as there are basically 4 reasons … [Read more…]

For Your Business: Is it Better to Rent or Buy?

CHOOSING WHETHER TO buy or to rent a Commercial property can often be a difficult decision. When you buy commercial property, you’re purchasing it with cash or loan proceeds. And when you have paid off the loan, you own the property outright. [Read more…]

The Current Office Market is Rather Confusing

IF WORKING FROM HOME is so appealing, why are businesses and governments choosing to hold onto their office space – and in many cases, lease even more?

According to the Property Council of Australia, Melbourne’s CBD towers were only 12% occupied in December – but 88% leased. And Sydney’s CBD towers were 23% occupied, but 91% leased. [Read more…]

Let’s Look Behind the Inflation Curtain

DESPITE THE RECENT new Omicron variant, consumer demand is surging against the backdrop of labour shortages, supply chain blockages and recent price increases.

All of this is causing confusion and some concern. And pundits around the world are detailing strong Inflationary pressure – which usually means interest rates are likely to increase, sooner rather than later. [Read more…]

Will People Return to the Office Anytime Soon?

IT’S OVER 18 MONTHS now since the pandemic triggered a total disruption to our everyday office routines – causing millions of people to work from home.

As we move into the second year – many established companies are still undecided on the new workplace model going forward. [Read more…]

Commercial Owners and Tenants Can Maximise Cash in Time for Your Spring Clean 

CLEANING AND MAINTENANCE is a high priority for any commercial property owners or businesses.

Not only does it help achieve durability for property and assets, but it also improves the presentation and profitability of a commercial facility. 

These costs can pile up quickly and squeeze money from bank accounts. But much needed relief can come in the form of tax deductions related to these cleaning and maintenance activities just in time for Spring.  

What does Cleaning & Maintenance look like for Commercial Owners?

Cleaning and maintenance can often work differently for commercial and residential owners. A commercial tenant tends to look after most cleaning and maintenance requirements necessary for their business operations. 

However, as a commercial owner, You may find yourself in a situation where the cleaning and maintenance tasks have well and truly stacked up.

This could be for several reasons, such as a tenant not meeting their own responsibilities. Or maybe, you have purchased a property needy some TLC. 

Whatever the case, commercial owners can claim any cleaning and maintenance costs as instant tax deductions, in the same financial year they are made. 

 What about Commercial Tenants? 

Commercial tenants (the business owner operating from the property) undertakes cleaning and maintenance activities on a regular basis and they can claim any products purchased for this at tax time. 

Sometimes, more detailed cleaning and maintenance activities must also be undertaken.

These are usually done by a professional external to the business, for example a handyman, machinery service technician or industrial cleaner.

Any costs associated with these types of services are 100 per cent tax deductible for the business. 

What happens when Maintenance turns into an Improvement?

Both commercial owners and tenants do need to be aware of the fine line between maintenance and improvements. 

Maintenance can often be more extensive and turn into a repair. The good news is a repair is also instantly tax deductible. However, depending on the nature of the repair it could be an improvement.

For example,  a damaged laminate bench top being replaced with a stone bench top. While the new bench top was a result of damage, it would be classed as an improvement – since the bench top was improved beyond its original state.

In this scenario, the bench top would need to be claimed over time using depreciation deductions. These are tax deductions for the natural wear and tear of property and assets over time. 

Depreciation is claimed at tax time and the amount depends on the asset type and value.

This is why it’s essential to enlist a speciality quantity surveyor, such as BMT Tax Depreciation – to prepare a tax depreciation schedule, and ensure any depreciation is claimed correctly and to its full potential. 

Bottom Line: A tax depreciation schedule is a report that outlines the deductions available for all depreciable assets held by the owner. If an improvement is made after the schedule has already been prepared, BMT can easily update the schedule to make the process of claiming ongoing depreciation easy. 

CBD Offices … After Covid

BEFORE THE PANDEMIC, there was a shortage of office space looming within the Sydney and Melbourne CBDs.

In fact, both were heading towards unhealthy vacancy levels of around 2% to 3%.

However, with extended lockdowns and some new supply coming onto the market … all that has clearly changed. [Read more…]