Warning: Declaration of TCB_Menu_Walker::walk($elements, $max_depth) should be compatible with Walker::walk($elements, $max_depth, ...$args) in /home/cpme/public_html/wp-content/plugins/thrive-visual-editor/inc/classes/class-tcb-menu-walker.php on line 620
Your Exposure – Page 3

Limit The Security You Grant to Your Lender

Security

IN MY LAST ARTICLE, you read about the various securities lenders can take over your property, in addition to mortgages.

This article will highlight various options for improving your security position when borrowing as a means of maximising your asset protection. [Read more…]

The Previous “BEWARE” … Has Now Become LAW!

High Court Ruling

THE LANDMARK DECISION of Willmott has recently been upheld by the High Court. The decision confirms that a liquidator has the ability to disclaim a lease, meaning that the tenant will no longer hold a leasehold interest in the land.

In our article published in September last year, a case summary was provided of the Victorian Supreme Court of Appeal decision. This article will focus on the reasons provided by the High Court. [Read more…]

How to Rectify Your Non-Complying SMSF

SMSF-3

LET’S REFRESH: In Part 1 we looked at areas of non-compliance; and then moved onto the potentially draconian tax consequences in Part 2.

If you have a non-complying SMSF, this final instalment will give you some direction (and hope) as to the action you can take.

If you have admitted that you are non-compliant to the ATO, the following considerations will determine your outcome. [Read more…]

The Very Serious Taxation Consequences of Having a Non-Complying SMSF

SMSF-2

IN PART 1, you discovered the main breaches that lead to non-compliance. This article outlines the very ugly tax consequences of being labelled non-compliant by the ATO.

Taxation Penalties

SMSFs are subject to income tax but receive concessional treatment — provided they are complying funds.

A complying SMSF’s assessable income is generally taxed at a rate of 15%. BUT for a non-complying fund the rate is 45%. [Read more…]

Does Your Self Managed Superannuation Fund (SMSF) Comply?

SMSF

IF YOU HAVE made a mistake with your SMSF, there is no point burying your head in the sand hoping it will go away!

There could be serious taxation consequences if you do have a non-complying SMSF.

The following series of articles looks at how you can manage SMSF problems … so that you can end up in great financial shape, focused and ready to invest appropriately over and over again. [Read more…]

Floor Loadings can often be A Trap for the Unwary

OLYMPUS DIGITAL CAMERA

YOU MAY KNOW that floor loadings differ depending upon the intended use of the floor — but it is not that simple.

Floor Loading Requirements

The imposed loading on a office/commercial use building is generally 3 Kpa (3000 kg per sqm). And a residential use building is 1.5 Kpa (1500 kg per sqm).

Therefore, if you plan on converting a Commercial property to residential — the floor is capable to withstand the higher loads and meet the requirements. [Read more…]

Getting All The Adjustments Correct at Settlement

Settlement

IN THE CONVEYANCING stage, before settlement, the vendor and purchaser adjust the purchase price to deal with the following matters:

  • Periodic payments of all statutory outgoings (such items as council rates, water rates and land tax); plus …
  • Rent and outgoings payable by a tenant under a lease. [Read more…]

Part 2: More About Your Loan Security

Loan-Security-2

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…]

What Creates Security for Your Loan?

Loan-Security

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…]

Beware of Latent Conditions or Undocumented Scopes

Latent Conditions

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

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…]

With Commercial Property … Balance Wins the Day

.
Sub-Lease-Space-L

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…]