7 Steps to Help You Succeed With Commercial Property

PURCHASING COMMERCIAL PROPERTY can be one of the most profitable investments you will make. However, there are a few steps you need to follow to help ensure your success.

1. Do your homework 

Understand the local property market and the specific property type you’re interested in. Look at things like rental rates, vacancy levels and the physical condition of the property.

2. Understand the intricacies 

Investing in Commercial property can be more complex than residential. However, if properly handled, you can generally enjoy twice the net return you’ll obtain from residential property.

3. Create a long-term strategy

Consider your overall investment strategy, and how Commercial property fits into it. Consider the property’s long-term potential, and how it can provide you with a steady income stream.

4. Seek professional advice

Engage a good property advisor, lawyer, accountant, builder and property manager to help you navigate the process of buying and managing a Commercial property.

5. Financing options 

There are several different financing options available for Commercial property. It’s best to work with a mortgage broker to obtain indicative approval before finalising the actual purchase.

6. Spread your risk 

Diversifying your portfolio can help reduce risk. Investing in different types of properties, in different locations, and with different tenants can help spread risk across multiple investments.

7. Be patient 

Commercial property investments can take time to deliver their full potential. So, be prepared to hold onto the property for several years. Be patient and stay focused on your long-term goals.

Where to, from here?

You might feel you’re ready to purchase a Commercial property … but perhaps need some guidance along the way.

If so, you can watch this short video giving you some background to my Mentor Group. There’s absolutely no commitment – but it may just pique your interest.

Best wishes …

Depreciation Tips for Commercial Property

UNDERSTANDING COMMERCIAL DEPRECIATION can sometimes be difficult, but luckily you are able to get some expert advice right here from the BMT team. 

And the good news is … you don’t need to know everything. That’s why you engage a specialist – to help you claim the maximum deductions. [Read more…]

How Important is it to Have An Investment Strategy?

AS IT IS WITH ANY INVESTMENT you make – be it shares, property or collectables … you need to know where you are heading. Plus, also ensure you have a solid foundation upon which to base all your decisions.

So, clearly, the answer to this question is: “Very important!” And probably more so, when you’re considering a commercial property. [Read more…]

Some More Construction Issues, Plus Solutions

A FEW WEEKS AGO now, we addressed several construction issues that can arise. And today we will continue to outline a few more.

Hard Dollar Competitive Tenders

You may have heard of the term 'hard-dollar competitive tenders' and wondered what it means.

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Commercial Property Should Regain Some Normality

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SEVERAL RECENT ARTICLES in the Financial Review have flagged a slowdown in Asian money flowing into the Australian property market.

And that is principally as a result of China clamping down on capital movements out of the country.

[Read more…]

Common Construction Problems

EVERY INDUSTRY has its issues and the construction game is no different. As with all issues, you simply have to know they exist, understand the various fixes and plan accordingly.

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Changes to FIRB Requirements

THE FOREIGN INVESTMENT Review Board's (FIRB) reluctance to prosecute non-complying foreign investors, and the public criticism that this has received, has led to the introduction of stricter foreign investment laws by the Australian Government.

These changes will apply from 1 December 2015.

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Depreciation Can Be Rather Accommodating

MORE AND MORE, Baby-Boomer investors are showing an interest in what is called "Traveller" accommodation.

Owners of income producing properties can generally claim both capital works and plant and equipment deductions. However when claiming for traveller accommodation, it's even more important to seek advice from a Quantity Surveyor.

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You Can Write-off Up to $20,000 Immediately

THESE TYPE OF DEDUCTIONS mean an immediate improvement in your profit.

As part of the May 2015 federal budget, the Australian Government announced that small businesses with an aggregated turnover of under $2 million would be entitled to claim a $20,000 instant asset write-off.

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“U Can’t Touch This”

MC HAMMER'S HIT SONG of the early 90's resonates when thinking about the main reasons people resist investing into their superannuation.

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New Tax Ruling 2015/2

THE AUSTRALIAN TAXATION OFFICE has released a new tax ruling effective from the 1st of July 2015.

Replacing Tax Ruling 2014/4, Tax Ruling 2015/2 outlines the effective lives for all assets when calculating depreciation deductions for plant and equipment items.

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