Insider Tips to Help You Discover How to Succeed with Commercial Property
.
THE BEST looking property could actually represent the worst real estate investment you have ever made.
Remember that Commercial real estate investing is all about … the Deal, the Terms and the Return on investment. Here are some tips for successful Commercial real estate investing. [Read more…]
Investing in Commercial property is not “rocket science”.
Nonetheless, there are certain key steps you do need to follow. And those involve you in making a number of simple (yet vital) decisions.
DECISION #1: Your Goals for the long and short term?
In other words, are you seeking Income on Capital growth — or both? Maybe you are after some good Tax savings — through negative gearing or Depreciation? [Read more…]
Well, not here in Australia anyway! And even overseas, things are vastly different this time around.
In 2008/09, it was private debt causing the problems … because nobody was too sure which banks were overly exposed to the sub-prime mortgage problem. [Read more…]
Yes, I know it is rather confusing. But this is merely an acronym for the … National Australian Built Environment Rating System.
Effectively, it benchmarks existing buildings against one another — where ZERO means a “Poor” rating … and FIVE indicates an “Excellent” green-rated building.
This rating system currently covers Offices, Homes, Hotels and Retail Centres — although the actual criteria do vary between the different types of buildings.
For Offices, they include aspects like … Energy, Water, Waste and the Indoor Environment. Whereas for Hotels, Retail Centres and Homes … it is only Energy and Water efficiency, which is rated.
Since November 2010, owners of Commercial Offices have been required to disclose their building’s NABERS rating — whenever they sell (or lease) any space larger than 2,000 square metres.
Their NABERS rating needs to be displayed in all advertisements; and appropriate documentation is to be available upon request.
The common exemptions would include …
Bottom Line: The penalties for non-compliance can be up to $110,000 for the first day; and then $11,000 for each further day of non-compliance.
However, it does provide you with a great opportunity to capture a strategic advantage … if your building holds the highest possible rating — given its age and condition.
Therefore, this system is important to ensure your property manager is fully ‘up to speed’ on all the various requirements. And if you would like to study any of this in more detail, simply go to the government’s website.
Last week, you looked at the reasons why lenders view Commercial property in a different league to Residential property, when it comes to finance.
And then, we moved to the various aspects Commercial lenders look at as far as Risk is concerned.
More importantly, just how these aspects will determine whether or not they will actually lend against the actual property you are looking to purchase.
However, what you really want to know is … [Read more…]
Commercial property finance is one of those aspects probably the least understood — and therefore, can lead to some are rather poor decisions by investors.
The most important thing you need to grasp is that there are basically no hard and fast rules about the various factors like … the leverage that is available … costs associated with Commercial loans or … the actual lending criteria most financiers and adopt.
When it comes to Commercial finance, everything has to be viewed in relation to the strength and size of each particular deal. [Read more…]
LAST WEEK, I promised to reveal those key Consultants to whom I’d be prepared to entrust my own property deals. So, let’s progress a little further with that.
No doubt you will have experienced your share of problems, when it comes to arranging the finance for a recent purchase you may have finalised.
As you’re probably aware, most vendors are unwilling to enter into a contract in the current market, containing a “subject to finance” clause. Because it would simply tie up their Commercial property, without any certainty of a sale. [Read more…]
AS YOU know, Property Edge Australia is there to help you in identifying and negotiating the actual purchase of your next Commercial property.
However, you still require certain other key consultants, in order to make every deal really work for you.
And those consultants need to be thoroughly trustworthy.
As you can appreciate, I have had the opportunity to work with a quite number of consultants, over the past 40 years. And I’ve quietly put together a close team of those ones, who have really gone out of their way to look after my Clients’ best interests.
Over the next week or so, I will reveal to you who these Consultants actually are — in the vital areas of:
Anyway, let’s make a start on the first one today. [Read more…]
When you’re just starting out, your main aim is probably just trying to secure a worthwhile property.
However, to be truly successful, you actually do need to have a Master Plan.
And to help you, here are 6 Steps towards formulating one for yourself. [Read more…]
Most investors fail to properly research the market and understand the relationship each sector (office, retail & industrial) has with the local economy, nearby competition and the marketplace itself.
Many investors fail to thoroughly analyze and research their chosen properties as far as the overall economics, calibre of the tenant and any related risks that may be involved.
Investing in Commercial property requires a reasonable degree of hands-on involvement. Some investors make the mistake of believing they can be absentee landlords. You at least need to be involved at a strategic level.
Negative gearing is fine. But you still need to start with sufficient equity, to ensure that your investment is not over-leveraged. Always keep some funds aside for unforeseen issues that may arise.
The ownership of Commercial property needs a basic understanding of things like … tenancy law, building construction, how to add value, recognising market trends and so on. All of these can be very easily addressed.
Some beginners tend to believe a cheap price means good value and a sound investment. Instead, you need to look behind what is being presented to discover the true underlying value.
To be a really successful Commercial investor, you need to build up a trusted team around you — to provide valuable input in the areas of …
After you’ve purchased your first property, you need to widen your perspective — both geographically, and across the various sectors of Commercial property. Never simply have all your eggs one basket.
WITH THE Commercial property market now starting to gain some momentum, it might be worthwhile reviewing your current Investment Objectives — simply to ensure they align with your underlying investment strategy.
In formulating that strategy, you may choose to vary the specific order of importance for the following set of Objectives. [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.
