Insider Tips to Help You Discover How to Succeed with Commercial Property
WHEN INVESTORS purchase a Commercial property, they will often consider renovating the property after settlement. Especially, if it is an older property in need of a face-lift before tenanting.
By renovating your Commercial property, you can create additional equity and generate extra rent in the process. But the real benefit is that you can also claim thousands of dollars in depreciation deductions — whenever renovations are done to your property. [Read more…]
WHENEVER YOU embark upon a physical Due Diligence for any Commercial property, there are five key issues on which you should focus. And all of them need to be fully explored.
Depending on the size and type of the building, you may well require a more-detailed analysis. But for the time being, this will provide you with a basic checklist. [Read more…]
Part 1: Don’t be easily Swayed by your Bank.
A COMMON piece of advice given by mortgage brokers to Commercial property investors — at least, by astute brokers — is to keep securities for each loan separate. In other words, any form of Cross Collaterization (as it’s known) is to be avoided at all costs.
Put simply, it is the combining of one mortgage registered against two or more properties (or sometimes even your business) as security. [Read more…]
COMMERCIAL building owners still remain unaware of the full taxation benefits their property could generate. One of the most worthwhile (yet often missed) deductions available is building depreciation.
As a building gets older and items within it age, they depreciate in value. The Australian Taxation Office (ATO) recognises this and allows property investors to claim deductions relating to the wear and tear on buildings and the fixtures and fittings within.
Claiming depreciation is the key to increasing the cash flow you generate from your Commercial properties. [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.
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…]
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…]
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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IN ALAN MITHELL’s article last Saturday (AFR: page 15), he discussed a recent report from the OECD — which outlined the growing pressures upon the Australian economy for structural change.
Apparently, the centre of gravity for global activity is gradually moving.
And as the table shows, this is moving closer to Australia; and will bring with it an increase in … specialisation, innovation, productivity and income.
However, as a Commercial property landlord, you will only continue to be successful if you can quickly identify those businesses benefiting most from what’s occurring.
You have already seen a shift in manufactured goods offshore; as well as the car industry unwisely being subsidised by government. [Read more…]
WHEN IT COMES TO MAXIMISING your property income, depreciation is a powerful tool that is often overlooked.
As a Commercial Investor, you have a unique advantage over those investing solely in residential properties.
FINANCIAL INSTITUTIONS HAVE a range of methods for evaluating commercial properties, but there are some general guidelines that they typically follow.
One of the key numbers that banks focus on is the property’s Net Operating Income (NOI), which is essentially the rental income minus expenses.
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.
