Insider Tips to Help You Discover How to Succeed with Commercial Property
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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…]
YOU THOUGHT you had negotiated a fixed-price contract for your planned building works, only to find yourself being progressively hit with expensive “Variations” as the construction phase progressed.
So, perhaps it is worth exploring how this comes about, in a little more detail.
Self Managed Super Funds & Property Depreciation (Part 1).
FOR MANY AUSTRALIANS, superannuation is one of the most important investments they have to help them save for the future.
Although most people may choose professionally managed super funds, an emerging trend has seen a growing number of people who elect to set up a Self Managed Super Fund (SMSF).
According to the Australian Taxation Office (ATO): In the four years leading up to the 30 June 2012, the SMSF sector grew by $109 billion or 33 per cent. In dollar terms, this represents the strongest growing super sector. The SMSF sector contributed the largest proportion of overall growth with 42 per cent of the total growth in super assets. [Read more…]
Part 2: Proper Loan Structuring can give you Protection.
LAST TIME (in Part 1), you discovered why the banks should not be allowed to call the shots. And perhaps a couple more Case Studies will help to further explain that.
He was a very successful property investor who had an impressive portfolio, consisting of several residential and commercial properties.
Kevin was able to build this portfolio through a mixture of a good knowledge of the market, savvy negotiating skills, a high-income job with a resources company and, it has to be said, some luck in picking the trends.
Kevin’s problem was that he wanted to retire early — which is something someone of his net worth should easily be able to do. But he made one major mistake. [Read more…]
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EVER SINCE Julia Gillard announced the September election in February … the ensuring political hiatus has meant almost everything (including our thinking) has simply been moving sideways.
Neither up, nor down … just drifting!
And that is completely understandable — because, when uncertainty reigns … people tend to do nothing.
TO DIE “Intestate” is to die without having made a Will. That means the distribution of your estate would then be in accordance with the law, and potentially against your wishes.
And that’s because, without a Will to provide a clear allocation of your assets and property … estates are divided according to the applicable state or territory legislation.
The legislation provides for the distribution of an estate in light of considerations such as … whether the deceased leaves any partners, children, living parents, brothers, sisters, or children of brothers and sisters. [Read more…]
EVERY CONSTRUCTION or refurbishment project is unique, in its specific requirements and challenges.
Accordingly, each project requires a broad range of skills and experience — which a professional project manager needs to be able to deliver.
So what is it you should be looking for, when appointing a Project Manager? [Read more…]
Part 2: Remain in Control of your Destiny
LAST WEEK, we made a start on understanding the pros and cons of Bank bills. But you also have other options.
Non-bill facilities are available through the big four banks, but are generally priced in a way as to only be competitive at smaller loan amounts.
While the big four banks are generally able to price better than smaller lenders, there are other factors considered to be important than merely the cost. And for small business, the interest rate on their borrowing is a relatively small consideration, in the overall scheme of things.
Far more important is access to credit, and flexibility of being able to draw up and down on that credit. Because, having this ability will reduce your overall interest costs in the longer run. [Read more…]
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…]
Part 1: An Understanding, plus the Hidden Costs
WHENEVER YOU ARE financing a commercial property investment or a business, the types of funding can be broadly classified into two categories: bill facilities and non-bill facilities.
Bill facilities are charged as a margin over the inter-bank lending rates, published each day in the Financial Review as commercial bills; while non-bill facilities are charged as a straight interest rate.
The funds for these facilities may also be raised through the money markets, but they are priced on a simple interest rate basis over a loan term. [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.
