How to Complete a Building Project on Time & on Budget

ProjectManagement2
AS YOU DISCOVERED last week, carrying out a proper due diligence is vital for any significant Commercial property purchase.

And that’s part of our role … assessing the overall structure, along with the various building services — simply to ensure they are all in good order.

However as time goes by, you may well have the need to upgrade or extend your building … if only to meet the changing needs of your tenants.

Yet this is where many investors seem to get into trouble — by undertaking something well beyond the limits of their capabilities. [Read more…]

Brand New … Rearing to Go!

Expert-Panel

Bringing you Commercial Property in far Greater Depth.

NOTHING BEATS hearing it straight from an Expert in their field. Whether it is Legal matters, Finance, Due Diligence, Tax Depreciation, Valuation issues or about the Commercial property market … who better than those handling these specific areas day in, and died out?

And that’s why I’ve brought together an Expert Panel … to provide you with regular, in-depth articles on each of these aspects.

Meet all the New Contributors [Read more…]

Commercial Property: Have You Bought What You Thought?

DueDiligenceWHENEVER you’re looking to acquire a Commercial property for $1 million or more, you should undertake thorough due diligence on it … before making a final commitment.

However, some investors new to Commercial property generally find themselves with a dilemma:

  1. By carrying out their due diligence before making an initial offer, they could end up missing out on the property and running up unnecessary costs; OR …
  2. By trying to make due diligence a condition of the contract, this may offend the vendor and derail the whole deal.

So, let’s explore both of these approaches in a little more detail. [Read more…]

How to Validate Your Commercial Property Purchase

Carrying out proper Due Dilignce is vitalMANY PEOPLE make the mistake of carrying out the due diligence study BEFORE they acquire their commercial properties.

This can end up becoming a very expensive process — because you can often miss out on the property, whenever someone else snaps it up, before you 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. [Read more…]

12 Fundamentals You Need to Follow … When Buying Commercial Property

There are 12 Rules you need to follow to successAS YOU WILL appreciate, being able to sleep at night is one of the key objectives for any Commercial property investor.

And that’s what many property investors refer to as staying below your “Threshold of Insomnia”.

There can be several things that might cause you to lose sleep. One is over-borrowing; and the others are making a poor assessment of the market and the property itself. [Read more…]

Your Success in Commercial Property Begins With The Correct “Investment Vehicle”

Your need to choose the right Investment Vehicle from the outset

BEFORE YOU purchase your next Commercial property, you do need to take some advice on which purchasing vehicle is right for you — because it’s definitely not ‘one size fits all’.

Tax Considerations

The Australian Tax Office is quite happy for you to arrange your affairs so as to minimise the tax you pay. In other words, it is quite legal for you to avoid tax — you simply cannot evade it. [Read more…]

Trusted Consultants ~ Part 4
Validating Your Purchase

MY ADVICE to clients is to always accept whatever the vendor is telling you about his or her property, as being “true”.

Then simply “reserve your right” within the Contract, to validate all the wonderful things you’ve been told about the Commercial property you’re about to purchase.

You see, most vendors believe their property to be perfect. And will therefore raise little objection to the final contract giving you a Due Diligence period … to confirm the overall status of the property.

Nash Logo [Read more…]

Do Banks Use a Formula When Lending on Commercial Property?

Getting the Money you need for your Loan

BANKS have a variety of ways of analysing a Commercial property; but there are a few guidelines they all tend to use.

For them, the most important number is the property’s Net Operating Income — which is basically rental minus expenses. As simple as that may seem, the calculation can vary dramatically from lender to lender.

Calculating the Net Operating Income is fairly straightforward. [Read more…]

Commercial Property: 5 Key Decisions To Help Guarantee Your Investment Success

 You need to make certain Decisions to Succeed with Commercial property
Investing in Commercial property is not “rocket science”.

Nonetheless, there are certain key steps you do need to follow. And those involve you in making a number of simple (yet vital) decisions.

DECISION #1: Your Goals for the long and short term?
In other words, are you seeking Income on Capital growth — or both? Maybe you are after some good Tax savings — through negative gearing or Depreciation? [Read more…]

Smart Investor Seminar

Just quickly …

On Saturday 27 August, I have been asked to take the Session on Commercial Property Investing … at this Smart Investor Seminar.

And I simply thought you may have some interest in knowing what’s also being covered at the same time. [Read more…]

Commercial Property:
Pricing Your Finance – Part 2

Last week, you looked at the reasons why lenders view Commercial property in a different league to Residential property, when it comes to finance.

Many things can affect the Pricing of your LoanAnd then, we moved to the various aspects Commercial lenders look at as far as Risk is concerned.

More importantly, just how these aspects will determine whether or not they will actually lend against the actual property you are looking to purchase.

However, what you really want to know is … [Read more…]