Insider Tips to Help You Discover How to Succeed with Commercial Property
GETTING YOUR TAX IN ORDER can be an overwhelming task. But when you have a commercial investment property, it can seem even more complex.
We’ve compiled a list of the most commonly asked questions to highlight just how depreciation can help maximise your cash return on a commercial property. [Read more…]
IN REALITY, the Australian economy is showing solid growth in the metropolitan areas. And there is a flow-on effect into most regional cities – the only exceptions being those areas recently struck by drought and bushfires.
While not buoyant (and there may be a short-term pullback from natural disasters) … overall, the economic fundamentals look fine.
Therefore, we need to steer clear from unwittingly talking ourselves into recession. Because, as soon as confidence returns (and it will), consumers will start spending again. [Read more…]
CHOOSING WHETHER to rent or buy commercial property can often be a difficult decision. To help you make the right choice, here are some key considerations. [Read more…]
EVERYONE NEGOTIATES … and generally, for most of the time!
You see, whether it’s at work or at home, we are all trying to persuade someone to adopt our point of view.
And therefore, I have put together what I’ve found to be the top Negotiating strategies over the past 40 years. [Read more…]
Crunch the Numbers for your Commercial property and Save
BEFORE PURCHASING a commercial investment property, make sure you crunch the numbers. The property may be more affordable if the right depreciation is claimed.
Savvy investors will usually consider the potential return of the property, surrounding commercial infrastructure along with rental vacancy rates in the immediate area.
However, investors will often fail to consider the financial benefit of claiming depreciation deductions prior to making their purchase. [Read more…]
THERE WAS A FAVOURABLE response to the so-called Phase 1 breakthrough in the Trade Talks, between the US and China. And there’s been further positive developments this week.
However, it is actually worth reviewing where things stood before these recent events.
Despite political tensions, there has been little adverse impact on Australia’s trade with China. And the rapid increase in China’s share of our exports has been principally driven by higher iron ore prices. [Read more…]
STARTING A BUSINESS can be a costly venture, but there are ways to reduce the costs involved. And whether you own a commercial property or are leasing the building, you could be entitled to thousands of dollars in depreciation deductions.
CLAIMING PROPERTY DEPRECIATION is paramount for commercial business owners. And yet, research suggests around 80% fail to maximise the deductions available to them.
As a result, they miss out on thousands of dollars.
With a commercial property, both owners and tenants are eligible to claim depreciation deductions simultaneously, so it’s important that both parties contact a specialist quantity surveyor to organise a tax depreciation schedule.
A depreciation schedule will outline all available deductions over the life of the property.
Under Tax Ruling 97/25, quantity surveyors like BMT Tax Depreciation are one of the only professions qualified to estimate construction costs for depreciation purposes.
Justin’s company owns a commercial office building purchased for $820,000 and rented for $1,050 per week or $54,600 per annum.
Expenses for the property including interest, rates, property management fees, repairs and maintenance total $57,088.
Without depreciation, Justin’s company is experiencing a loss of $34 per week on the commercial office building.
Justin contacted BMT Tax Depreciation and found his business could claim $40,080 in depreciation deductions for the property in the first financial year alone.
The following table shows Justin’s scenario before and after his company made the depreciation claim for the property.
By claiming depreciation, Justin improved the loss of $34 per week on the company’s property to a return of $198 per week. This improved the tax refund for the property by $12,024 in the first financial year.
As the case study shows, claiming property depreciation deductions can have a significant impact on a commercial business owner’s cash flow position.
Bottom Line: A BMT Tax Depreciation Schedule details all available deductions over the lifetime of a property to ensure investors maximise their cash flow. Schedules have a one-off fee; and are totally tax deductible.
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…]
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. [Read more…]
THE CBD VACANCY rate for Sydney currently sits at 4.1%. And for Melbourne, it’s now at 3.8%.
As you would expect, overseas events have caused some hesitancy in the market. And the Sydney CBD can be rather sensitive to the global economy.
That said, recent reports show local business confidence growing – with stability appearing to return, after the recent election. [Read more…]
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.
If you’re new to investing, you might be wondering if it’s possible to manage your own commercial property. The short answer is “yes”, but only if you know what you’re doing.
It’s important to note that owning a commercial property comes with certain legal responsibilities, particularly when it comes to compliance with Essential Services requirements under current Building Regulations.
The current trends in the business have made it clear that office landlords have to cater to the needs and preferences of their tenants. Building owners and managers (who understand and meet these demands) will be able to command higher rents and reduce vacancy rates.
To expand on this, here are four key tips to help attract quality tenants.
