Does Your Self Managed Superannuation Fund (SMSF) Comply?

SMSF

IF YOU HAVE made a mistake with your SMSF, there is no point burying your head in the sand hoping it will go away!

There could be serious taxation consequences if you do have a non-complying SMSF.

The following series of articles looks at how you can manage SMSF problems … so that you can end up in great financial shape, focused and ready to invest appropriately over and over again. [Read more…]

Floor Loadings can often be A Trap for the Unwary

OLYMPUS DIGITAL CAMERA

YOU MAY KNOW that floor loadings differ depending upon the intended use of the floor — but it is not that simple.

Floor Loading Requirements

The imposed loading on a office/commercial use building is generally 3 Kpa (3000 kg per sqm). And a residential use building is 1.5 Kpa (1500 kg per sqm).

Therefore, if you plan on converting a Commercial property to residential — the floor is capable to withstand the higher loads and meet the requirements. [Read more…]

Getting All The Adjustments Correct at Settlement

Settlement

IN THE CONVEYANCING stage, before settlement, the vendor and purchaser adjust the purchase price to deal with the following matters:

  • Periodic payments of all statutory outgoings (such items as council rates, water rates and land tax); plus …
  • Rent and outgoings payable by a tenant under a lease. [Read more…]

Part 2: More About Your Loan Security

Loan-Security-2

IN THE LAST article, you read about two different types of security that lenders can take other than the mortgage. They were “Fixed and Floating Charges” and “Personal Guarantees”.

However, there are a few other forms of security that you should be aware of before entering into any agreements. Read on to find out more. [Read more…]

What Creates Security for Your Loan?

Loan-Security

WHEN YOU TAKE out a property secured loan, you understand that a lender will register a mortgage against the property that is being secured.

However, typically, when you read through actual loan agreements, the mortgage is just one part of the security that is taken.

In this article, we will be looking at some of the other types of security that lenders will typically request when applying for a loan. [Read more…]

Beware of Latent Conditions or Undocumented Scopes

Latent Conditions

ARE YOU AWARE of your latent condition or scope of work costs? If you are investing or developing you should have contingency funding set aside for these expenses.

Latent Conditions

Latent conditions can take many forms. You should know what kinds of latent conditions exist so you have a better picture of the possible rectification costs of these issues. [Read more…]

With Commercial Property … Balance Wins the Day

Sub-Lease-Space-L

THIS CHART APPEARED as part of a recent article in the Financial Review, by Mercedes Ruhl (30 October, page 41).

The article reassured investors that the anticipated short-term surge in sublease space (within Australia’s CBD Office markets) has simply not eventuated.

“Sublease space spikes at times when the economy is weak and business confidence is low because companies are restructuring and downsizing.”

Furthermore, the article suggests the overall amount of sublease space is expected to fall sharply over the next few months — following the post-election improvement in business confidence.

And of all the capital cities, the CBRE research shows Melbourne has provided the greatest improvement over the past year. [Read more…]

Debt Recycling & CGT for Your Commercial Property!

DebtRecycle

DEBT RECYCLING INVOLVES converting bad debt into good debt. In other words, converting debt you cannot claim as a tax deduction into debt that you can.

This can be a little complicated to explain so take a look at a couple of practical examples. [Read more…]

Do You Have an Asbestos Register for Your Older Commercial Properties?

Asbestos-Removal

IF YOU OWN an Australian property built prior to 1980, there is an increased chance that some form of asbestos material was used in its construction.

If left intact, asbestos does not usually pose a health risk. However, when asbestos has been disturbed or damaged — the fibres within it become a health concern to anyone exposed.

Asbestos is Your Responsibility

Due to the serious health risks associated with asbestos, there are now laws relating to asbestos in most states and territories across Australia. [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…]

With Commercial Property Managers … What Should You Expect?

Commercial-Property-Management

OF COURSE, everyone’s expectations will differ as to how your property should be managed. But over the years, my clients have provided a few clues. And these have been rather helpful in creating a simple checklist.

Good Property Management is the Key to Your SuccessAnd so once you’ve finally acquired a suitable Commercial property, any ongoing Management will need to make sure that … [Read more…]