IN THE CONVEYANCING stage, before settlement, the vendor and purchaser adjust the purchase price to deal with the following matters:
IN THE LAST article, you read about two different types of security that lenders can take other than the mortgage. They were “Fixed and Floating Charges” and “Personal Guarantees”.
However, there are a few other forms of security that you should be aware of before entering into any agreements. Read on to find out more. [Read more…]
WHEN YOU TAKE out a property secured loan, you understand that a lender will register a mortgage against the property that is being secured.
However, typically, when you read through actual loan agreements, the mortgage is just one part of the security that is taken.
In this article, we will be looking at some of the other types of security that lenders will typically request when applying for a loan. [Read more…]
ARE YOU AWARE of your latent condition or scope of work costs? If you are investing or developing you should have contingency funding set aside for these expenses.
Latent conditions can take many forms. You should know what kinds of latent conditions exist so you have a better picture of the possible rectification costs of these issues. [Read more…]
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FOR THE PAST month or so, I’ve been working behind the scenes to produce this free App … the Hi-Return Filter. And it was released only last week.
You see over the years, I have noticed how even seasoned investors can sometimes make subjective judgements, about the potential of certain properties.
What this App does is take your 8 Investment Objectives and neatly combine them with your 12 Buying Criteria. And then, create an inter-active matrix … which allows you to objectively shortlist your potential properties. [Read more…]
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THIS CHART APPEARED as part of a recent article in the Financial Review, by Mercedes Ruhl (30 October, page 41).
The article reassured investors that the anticipated short-term surge in sublease space (within Australia’s CBD Office markets) has simply not eventuated.
“Sublease space spikes at times when the economy is weak and business confidence is low because companies are restructuring and downsizing.”
Furthermore, the article suggests the overall amount of sublease space is expected to fall sharply over the next few months — following the post-election improvement in business confidence.
And of all the capital cities, the CBRE research shows Melbourne has provided the greatest improvement over the past year. [Read more…]
DEBT RECYCLING INVOLVES converting bad debt into good debt. In other words, converting debt you cannot claim as a tax deduction into debt that you can.
This can be a little complicated to explain so take a look at a couple of practical examples. [Read more…]
IF YOU OWN an Australian property built prior to 1980, there is an increased chance that some form of asbestos material was used in its construction.
If left intact, asbestos does not usually pose a health risk. However, when asbestos has been disturbed or damaged — the fibres within it become a health concern to anyone exposed.
Due to the serious health risks associated with asbestos, there are now laws relating to asbestos in most states and territories across Australia. [Read more…]
ENVIRONMENTAL CONTAMINATION is fast becoming a contentious issue in the 21st century. As such, it is not surprising this is becoming one of the key factors in property transactions.
All aspects of contamination and compliance with environmental laws have emerged as an issue in negotiations between vendors and purchasers.
Generally speaking, a vendor will aim to sell a property ‘as is, where is’. Accordingly, the vendor’s preference would be for the purchaser to rely on its own enquiries; and therefore, buy the property in its present state of repair.
This would mean the purchaser buys the property subject to any pre-existing contamination, or non-compliance with environmental laws. [Read more…]
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OF COURSE, everyone’s expectations will differ as to how your property should be managed. But over the years, my clients have provided a few clues. And these have been rather helpful in creating a simple checklist.
And so once you’ve finally acquired a suitable Commercial property, any ongoing Management will need to make sure that … [Read more…]
WHEN BORROWING against Residential or Commercial properties for investment, it is important to keep in mind the most effective ways of claiming tax benefits, if you wish to maximise the return from your investment.
This is particularly so, when the purchasers are couples — because working with the correct loan set-up can ensure the household tax burden is considerably reduced. [Read more…]
