Debt Recycling & CGT for Your Commercial Property!

DebtRecycle

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…]

Do You Have an Asbestos Register for Your Older Commercial Properties?

Asbestos-Removal

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.

Asbestos is Your Responsibility

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 Issues Loom Large Among Commercial Property Transactions

Green-Building

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.

Sale contracts

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…]

With Commercial Property Managers … What Should You Expect?

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Commercial-Property-Management

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.

Good Property Management is the Key to Your SuccessAnd so once you’ve finally acquired a suitable Commercial property, any ongoing Management will need to make sure that … [Read more…]

4 Key Tips for Couples Arranging Loans

Loan-Approved

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…]

STOP! Is Your Commercial Property Affected by an Easement or Encroachment?

Land-Survey

EASEMENTS and encroachments remain one of the key considerations within property transactions — due to their consequential implications for purchasers and landowners.

Easements

An easement is an interest in land creating the right to make use of another owner’s land for a specific purpose. In many cases, there will be two properties subject to the easement — the property, which is burdened by the easement … and the property, which benefits from the easement. [Read more…]

How to Manage Those Fearsome Project Variations

Variations
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.

What is a Variation? [Read more…]

Never Cross Collateralize Your Loan Arrangements

Cross-Collateralizing-2
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.

Let’s take a look at what happened “Kevin”

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…]

Where There’s a Will … There’s a Way

Wills
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…]

Be Wary of Bank Bills

BankBills2
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…]

Retail Sector Still Patchy

RetailPatchy
IN RECENT TIMES, the entire retail sector has been hit on two fronts — with local traders having been challenged by both the highest-rated in dollar, and weakened global economic conditions.

Plus, you’ve also seen a structural shift in how modern consumers are choosing to engage in the market — with the continued growth of online consumer purchases.

The effect of Global uncertainty [Read more…]