How to Complete a Building Project on Time & on Budget

ProjectManagement2
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…]

Commercial Property: Have You Bought What You Thought?

DueDiligenceWHENEVER you’re looking to acquire a Commercial property for $1 million or more, you should undertake thorough due diligence on it … before making a final commitment.

However, some investors new to Commercial property generally find themselves with a dilemma:

  1. By carrying out their due diligence before making an initial offer, they could end up missing out on the property and running up unnecessary costs; OR …
  2. By trying to make due diligence a condition of the contract, this may offend the vendor and derail the whole deal.

So, let’s explore both of these approaches in a little more detail. [Read more…]

How to Validate Your Commercial Property Purchase

Carrying out proper Due Dilignce is vitalMANY PEOPLE make the mistake of carrying out the due diligence study BEFORE they acquire their commercial properties.

This can end up becoming a very expensive process — because you can often miss out on the property, whenever someone else snaps it up, before you complete your study.

Therefore, the secret lies in ensuring you negotiate a deal — where your due diligence occurs AFTER you have tied up the property, under a binding contract of sale. [Read more…]

12 Fundamentals You Need to Follow … When Buying Commercial Property

There are 12 Rules you need to follow to successAS YOU WILL appreciate, being able to sleep at night is one of the key objectives for any Commercial property investor.

And that’s what many property investors refer to as staying below your “Threshold of Insomnia”.

There can be several things that might cause you to lose sleep. One is over-borrowing; and the others are making a poor assessment of the market and the property itself. [Read more…]

Your Success in Commercial Property Begins With The Correct “Investment Vehicle”

Your need to choose the right Investment Vehicle from the outset

BEFORE YOU purchase your next Commercial property, you do need to take some advice on which purchasing vehicle is right for you — because it’s definitely not ‘one size fits all’.

Tax Considerations

The Australian Tax Office is quite happy for you to arrange your affairs so as to minimise the tax you pay. In other words, it is quite legal for you to avoid tax — you simply cannot evade it. [Read more…]

Trusted Consultants ~ Part 4
Validating Your Purchase

MY ADVICE to clients is to always accept whatever the vendor is telling you about his or her property, as being “true”.

Then simply “reserve your right” within the Contract, to validate all the wonderful things you’ve been told about the Commercial property you’re about to purchase.

You see, most vendors believe their property to be perfect. And will therefore raise little objection to the final contract giving you a Due Diligence period … to confirm the overall status of the property.

[Read more…]

Do Banks Use a Formula When Lending on Commercial Property?

Getting the Money you need for your Loan

BANKS have a variety of ways of analysing a Commercial property; but there are a few guidelines they all tend to use.

For them, the most important number is the property’s Net Operating Income — which is basically rental minus expenses. As simple as that may seem, the calculation can vary dramatically from lender to lender.

Calculating the Net Operating Income is fairly straightforward. [Read more…]

Commercial Property: 5 Key Decisions To Help Guarantee Your Investment Success

 You need to make certain Decisions to Succeed with Commercial property
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…]

Building Your Team of
Trusted Expert Consultants

Building your Consulting TeamAS 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:

  • Covering the Legal Issues;
  • Financing the Deal; and
  • Claiming your Full Tax Benefits.

Anyway, let’s make a start on the first one today. [Read more…]