The Office Scene Revisited

A FEW WEEKS AGO, I gave you an overview of the CBD Office scene around Australia. And that explained there was a 2-speed market between Sydney & Melbourne, and the other capital-city CBDs.

Now the Property Council of Australia has come out with its latest Office Market Report — as of June 2016.

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Commercial Vs Residential Property Depreciation

OFTEN INVESTORS considering purchasing an investment property will ask whether a commercial or a residential property will provide them with more deductions in the form of depreciation.

As you'll appreciate, there are many factors an investor needs to be aware of when making their choice between these two investment opportunities. Let's take a look at just some of the differences.

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CBD Offices Shaping Up as a 2-Speed Market

ACCORDING TO the latest quarterly report from JLL (AFR: 14 July p35), the Australian CBD office scene was in much better shape, as at the end of June this year.

However, it was only Sydney and Melbourne that displayed any marked improvement.

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APRA Cracking Down on Commercial Property Investment Loans

AS MANY INVESTORS would already be aware, borrowing for investing in property has become increasingly difficult over the past 12 months.

And that's because APRA (the banking regulator) has issued a warning to major banks to reduce their exposure to investment property loans.

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Claim More From Your Home Business This Tax Time

IT'S ESTIMATED that close to one million businesses in Australia are home based and this sector is considered to be one of the fastest growing business sectors.

For those who choose to operate a business from home there are many benefits including a better work-life balance where you can adjust your hours to suit the needs of family or your busy lifestyle and the ability to avoid any costs involved in renting a space for your business.

One of the biggest benefits that often goes unrealised by those who work at home, is the opportunity to claim deductions for any of the depreciable assets used for the purpose of operating the business.

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Recent Changes to the Lending Environment

THE CURRENT LENDING environment has changed markedly over the last two months with the main developments being:

  1. Lending to foreign investors has been severely restricted or entirely removed by all Australian banks.
  2. Interest Rates have been cut, with the drop passed on for owner-occupied loans and partially passed on for investment loans.
  3. Concerns have been raised about housing oversupply in certain parts of the country, including Melbourne and Sydney, and lenders have placed increased restrictions on higher density developments. 
  4. Some banks have been advised that their loan books are too heavily weighted to property investment (including commercial) and have thus pulled back their lending ratios.
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Federal Budget 2016: You and Your Super

SUPERANNUATION, yes, it's still tax free. However, it comes with changes in that if you have more than $1.6m in superannuation at retirement, the amount over those earnings (not the withdrawals) will not be tax free from July 2017.

Not all bad news, as the bits above $1.6m still receive low concessional tax rates (10 or 15%). And, in most cases, it is far better than being taxed outside of superannuation.

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Do You Fully Understand “Cooling Off” Periods?

COMMERCIAL PROPERTY INVESTORS will generally live in a residential property. So, here is something to consider when you come to buy your next home.

A recent decision in the Supreme Court of Victoria (Tan v Russell [2016] VSC 93) has made it clear that real estate agents do not have authority to receive notices of termination when purchasers seek to exercise their cooling off rights, unless otherwise authorised to receive such notices.

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Reduce Your Fit-out Costs Using Depreciation Deductions

STARTING A NEW business can be quite daunting, particularly if you're trying to do so within a strict budget.

On top of other initial start-up costs, such as purchasing stock or merchandise, arranging insurance, budgeting for staff overheads and (if you don't own the building) allocating funds to pay rent, there are often costs involved in installing assets to fit-out the new space before you can open the doors for business.

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Answers For Commercial Property Investors

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MANY OF YOU are now Members and therefore, already receive my Property Briefings podcasts each month. But if you’re not, you can simply join here or by clicking on the orange logo above — because Membership is FREE.

Anyway, I’ve been regularly receiving requests about providing access to transcripts for the various Episodes — which number more than 120 so far.

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Negative Gearing Reform

Do Commercial Investors have anything to fear?

WHILE NEGATIVE GEARING is relied upon by investors across various sectors in the Australian economy, it has once again been brought under the spotlight within the context of property investment.

And both sides of politics have shared their positions, where it has been hotly debated over the last few months.

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