Industrial Property – The Flavour of the Month

IT WOULD SEEM the growth in eCommerce is creating a surge in speculative Warehouse development. And along the east coast, the volume of new space to 30 June has exceeded that for the whole of 2018.

During last year, there was 422,000 sqm of speculative development. And yet there has already been over 550,000 sqm of space built so far this year.

And the appetite by major investors doesn’t seem to be slowing.

As you see, last year, Sydney was the out. But so far this year, Melbourne seems to be gaining ground – expecting to reach record levels by the end of 2019.

Distributors, logistic firms and certain retailers are eager to improve their efficiency levels … pre-committing to around half the space coming on stream.

Bottom Line: This is great news for those of you already holding Industrial property. However, for any investors looking to enter the market, you should probably proceed with some caution – because the market is becoming a little overheated.

Why Should You Invest in Commercial Property?

“This article by BMT Tax Depreciation is important
– because it simply confirms what I’ve conveyed in
a number of previous articles.”
   Chris Lang 

MANY INVESTORS tend to stay within their comfort zone when it comes to investing in property. And typically, this means they merely purchase residential houses and apartments. 

However, investing in commercial property has become more popular in recent times as investors look to diversify their portfolio and seek out affordable alternatives in a tightening residential market.

Unlike residential property, vacancy rates for commercial property are low and this combined with higher returns and depreciation benefits means there are several reasons to consider commercial properties as a potential investment.

We’ve taken a look at some reasons why commercial property is worth adding to your property portfolio. [Read more…]

The Era of Multi-storey Industrial Development

AS INDUSTRIAL land becomes scarce and more expensive, you will begin to see more multi-story warehouses emerge.

The first such major project is about to start in Revesby, in Sydney’s west.

George Potter and Singapore developer Roxy-Pacific are embarking upon a $50 million project of over 8,000 m² – comprising 44 industrial and office units over two floors. Plus, 90 self-storage units at basement level.

It’s being driven by the rising cost and short supply of suitable land close to the Sydney CBD.

Bottom Line: This approach is quite normal throughout Asia – where there are a few suitable sites close to urban areas. And it will become more common here in Australia – with online retailers wanting to have their warehouses close to customers, for speedy delivery.

8 Key EOFY Tax Tips for Commercial Property

WITH TAX TIME upon us, you’re probably preparing to visit your accountant – to complete your annual income tax assessment.

Getting your tax in order can be an overwhelming task, but when you have a commercial investment property it can seem even more complex. [Read more…]

Your Limited Recourse Borrowing Arrangements

BORROWING THROUGH a Self Managed Super Fund (SMSF) to acquire commercial property has been a popular and attractive strategy over recent years – due to the tax benefits, and ability to minimise personal guarantees.  [Read more…]

Claiming Depreciation for an Industrial Warehouse

THERE HAS BEEN a rise in demand for industrial property in recent years, particularly for warehouse storage space. 

This is due to the so-called ‘Amazon effect’ which has resulted in an increase in online retailers requiring the space to store, pack and send orders. [Read more…]

Likely Impact of the US/China Trade War on Property

ACCORDING TO JP MORGAN, the expected trade war should only shave about 0.07% off Australia’s GDP over the next couple of years. [Read more…]

The Pendulum Has Swung

WHAT AN AMAZING election result … although, I had always felt it would be a lot closer than everyone thought. Now many people are now asking how the pollsters could have got it so wrong?

In actual fact, they weren’t that far out. Rather, it was more a heavy bias in media coverage which fanned the Labor fever.

So, How DID the Coalition Manage to Win?

[Read more…]

Scrapping Can Boost Your Commercial Property Return

COMMERCIAL PROPERTIES are often renewed and transformed to suit the ever-changing needs of their occupants. 

Scrapping occurs when removed assets and structural elements within a building have a remaining un-deducted value. At the time of removal, as the owner of the asset, you can claim that remaining value as an immediate deduction in that financial year. [Read more…]

A Quick Snapshot of the Commercial Property Market

RECENT RESEARCH conducted by CBRE has confirmed that investors preferred Melbourne over the other capital cities – based upon the strong fundamentals driving rental growth. [Read more…]

What Exactly is a Quantity Surveyor? 

THIS IS A QUESTION often asked by Investors.

A Quantity Surveyor (or QS) is a professional who specialises in estimating the value of construction costs and other assets. And Quantity Surveyors may get involved at various stages: prior to construction, during construction and post-construction.  [Read more…]