Insider Tips to Help You Discover How to Succeed with Commercial Property
EVERY CONSTRUCTION or refurbishment project is unique, in its specific requirements and challenges.
Accordingly, each project requires a broad range of skills and experience — which a professional project manager needs to be able to deliver.
So what is it you should be looking for, when appointing a Project Manager? [Read more…]
Part 2: Remain in Control of your Destiny
LAST WEEK, we made a start on understanding the pros and cons of Bank bills. But you also have other options.
Non-bill facilities are available through the big four banks, but are generally priced in a way as to only be competitive at smaller loan amounts.
While the big four banks are generally able to price better than smaller lenders, there are other factors considered to be important than merely the cost. And for small business, the interest rate on their borrowing is a relatively small consideration, in the overall scheme of things.
Far more important is access to credit, and flexibility of being able to draw up and down on that credit. Because, having this ability will reduce your overall interest costs in the longer run. [Read more…]
AS WE APPROACH the end of the financial year, many Commercial property owners often seem rather confused as to all the Depreciation deductions they might be entitled to.
To help you, here are the most commonly asked questions — purely to highlight just how depreciation can significantly bolster the overall cash return you can extract from your Commercial property.
Part 1: An Understanding, plus the Hidden Costs
WHENEVER YOU ARE financing a commercial property investment or a business, the types of funding can be broadly classified into two categories: bill facilities and non-bill facilities.
Bill facilities are charged as a margin over the inter-bank lending rates, published each day in the Financial Review as commercial bills; while non-bill facilities are charged as a straight interest rate.
The funds for these facilities may also be raised through the money markets, but they are priced on a simple interest rate basis over a loan term. [Read more…]
MANY PEOPLE will make the mistake of not carrying out a due diligence study BEFORE they acquire their Commercial properties.
But this can end up becoming a very expensive process — because you’ll can often miss out on the property, if someone else snaps it up, before you’re able complete your study.
Therefore, the secret lies in ensuring you negotiate a deal — where your due diligence occurs AFTER you have tied up the property, under a binding contract of sale.
Anyway, here are the 5 Key Elements you need to investigate … [Read more…]
YOU WILL quickly find that there are two different schools of thought:
Despite Australia having been mostly sheltered from the global financial crisis, retailers (especially in strip shopping centres) have been doing it rather tough.
Before the GFC, Retail property yields had plummeted. In some cases, as low as 3.5% per annum — with investors clamouring for what they saw as “sexy property”. And they believed values would always increased dramatically. [Read more…]
OVERALL, people appear to have returned from their Christmas break with a renewed sense of confidence — certainly as far as Commercial property is concerned.
In a recent article, I covered the reasons for this change.
However, investors are also being buoyed by the past two weeks of solid economic data — including a welcome boost to Australia’s trade balance, as well as retail turnover increasing by 0.9% during January. [Read more…]
SOME 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”.
There is a certain hesitancy that sometimes accompanies the transition from Residential to Commercial property investing. [Read more…]
SO LET’S GO right back to basics … and just break down a Commercial property investment into its fundamental components.
You see, very few investors seem to spend enough time to fully understand what’s involved.
And you may care to explore each of these aspects in a little more detail. [Read more…]
IT’S TRUE … every deal will always be different. But that does not mean you can’t use a series of simple measures, to help you sift the “wheat from the chaff”!
Only then, are those properties entitled to make it through to the next stage of detailed analysis.
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CLEARLY, the more funds you have available as a Commercial property investor … the wider your choice, and the greater your chances are for growth.
When starting out, most investors feel the only way to leverage your modest equity is through borrowing. And sometimes you may extend yourself too much in the process.
But there is another avenue, which carries far less risk will. And that involves joining with like-minded investors, in a private Syndicate. [Read more…]
WITH EVERY NEGOTIATION, you always need to be thinking on your feet. And here are several simple Tips to help you do just that.
WHEN YOU EMBARK on your journey as a property investor, it can be overwhelming – with a flood of information and diverse opinions. To help simplify the process, here are five essential tips for new (and seasoned) investors.
IT DOES NOT MATTER whether you’re an investor or an owner-occupier, there are several important factors to consider when purchasing a commercial property to ensure you make the right choice.
In a previous article, I shared a handy App to assist you in shortlisting potential properties. If you haven’t already downloaded it, simply click on the HiReturn Filter over on the right, to install it on your tablet or mobile device.
THERE IS A BELIEF among many experts that a surge in the stock market typically precedes a recovery in the commercial property market by about six months. And the start of this year saw equity markets gaining some momentum.
I HAVE BEEN ASKED countless times about the secrets to a successful negotiation. And I want to share with you the key elements to help make your negotiations effective.
But first, just watch this short video to gain a quick understanding of these three essential elements that form the foundation of every negotiation.
If you’re new to investing, you might be wondering if it’s possible to manage your own commercial property. The short answer is “yes”, but only if you know what you’re doing.
It’s important to note that owning a commercial property comes with certain legal responsibilities, particularly when it comes to compliance with Essential Services requirements under current Building Regulations.
The current trends in the business have made it clear that office landlords have to cater to the needs and preferences of their tenants. Building owners and managers (who understand and meet these demands) will be able to command higher rents and reduce vacancy rates.
To expand on this, here are four key tips to help attract quality tenants.
