Changes to FIRB Requirements

THE FOREIGN INVESTMENT Review Board's (FIRB) reluctance to prosecute non-complying foreign investors, and the public criticism that this has received, has led to the introduction of stricter foreign investment laws by the Australian Government.

These changes will apply from 1 December 2015.

Continue Reading

Depreciation Can Be Rather Accommodating

MORE AND MORE, Baby-Boomer investors are showing an interest in what is called "Traveller" accommodation.

Owners of income producing properties can generally claim both capital works and plant and equipment deductions. However when claiming for traveller accommodation, it's even more important to seek advice from a Quantity Surveyor.

Continue Reading

Why Choose Commercial Property Over Residential?

.
Commercial

OBVIOUSLY, THIS IS the question every residential investor asks … whenever they are considering the transition across to Commercial property.

However, you will quickly discover the reasons are rather compelling. [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…]

With Property … How to Stay Cool When Things Get Hot

Keeping-Cool

A RECENT CASE in the Queensland Civil Administrative Tribunal (QCAT) has brought the laws governing cooling-off periods into sharp focus. And the ability of vendors to retain termination fees where contracts are terminated was challenged.

While the laws relating to cooling off periods differ in each state, this article will discuss the general principles of cooling off periods … and what you need to be aware of when seeking to exercise your rights. [Read more…]

Depreciation Differences: Part 2

ComVsRes-Depn-2

Commercial Vs Residential Property.

LAST WEEK, we covered the different types of Depreciation and the depreciation rules for tenants in Commercial properties.

Read on now, for the rules for claiming occupancy in a Commercial/Residential property — plus another useful tip, when it comes to when claiming deprecation. [Read more…]

Commercial Property and The Baby Boomer Dilemma

.
Baby-boomers

YOU MAY RECALL several blogs in the past about Baby Boomers … explaining the effect they will have upon the property market — both Residential and Commercial.

In 2005, I warned investors that: If you hadn’t sold your traditional inner-city family home by 2010-11 … you had better be prepared to hold it until 2025.

My reasoning for this was NOT that there would be any fewer buyers. Rather, they would be five times as many of these homes on the market — as baby boomers sought to downsize en masse. [Read more…]

Commercial Vs Residential Property … What are the Depreciation Differences?

ComVsRes-Depn

THIS IS THE FIRST of a 2-part article, to help provide you with a useful comparison between the depreciation of Commercial and Residential property.

Investors considering purchasing an investment property will often enquire whether a Commercial or a Residential property will provide them with more deductions in the form of depreciation.

However, there are many important factors you need to be aware of when making a choice between these two investment options. [Read more…]

Environmental Issues Loom Large Among Commercial Property Transactions

Green-Building

ENVIRONMENTAL CONTAMINATION is fast becoming a contentious issue in the 21st century. As such, it is not surprising this is becoming one of the key factors in property transactions.

Sale contracts

All aspects of contamination and compliance with environmental laws have emerged as an issue in negotiations between vendors and purchasers.

Generally speaking, a vendor will aim to sell a property ‘as is, where is’. Accordingly, the vendor’s preference would be for the purchaser to rely on its own enquiries; and therefore, buy the property in its present state of repair.

This would mean the purchaser buys the property subject to any pre-existing contamination, or non-compliance with environmental laws. [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…]

How Good a Commercial Property Investor Are You?

InvestSOME WOULD-BE investors never get around to taking the plunge into Commercial property.

They certainly know quite a lot, because they read plenty of books and regularly attend seminars. But even so, they remain what are affectionately called “Armchair Investors”.

How to Cure Procrastination

There is a certain hesitancy that sometimes accompanies the transition from Residential to Commercial property investing. [Read more…]