HERE ARE 8 key items which should be on every Commercial property investor’s Checklist.
Between signing the contract and the settlement date, you should always decide precisely what your future intentions are.
Because this will determine the most appropriate vehicle for ongoing ownership.
Is it best to be held in personal names, joint names, a trust or a company? [Read more…]
Success varies between restaurateurs, yet most would agree that delicious food, a pleasant ambience, and friendly staff are key. But a healthy stream of cash flow is more important than anything.
One way restaurateurs can improve their cash flow is by taking advantage of depreciation deductions.
Here, we will explain what depreciation deductions are and what they look like in a busy Melbourne restaurant. [Read more…]
AUSTRALIA HAS ALWAYS BOASTED a solid immigration rate – to the point, where about 30% of our population has actually been born outside the country.
During the pandemic, immigration numbers fell dramatically. As a result, vital skills shortages emerged among building & construction, hospitality and rural workers.
Over the years, the best-performing countries (where Australia stands out) were generally resource-rich, new-world countries with strong population growth and good record with corporate governance.
The Productivity Commission recently estimated immigration contributed almost 20% of the improvement in GDP per capita over the past 40 years.
Mistakenly, there are some who fear immigration will adversely affect employment levels – by taking jobs from existing workers. Instead, it’s been proven that immigration delivers broad-based improvements in productivity, across all levels of society.
Ultimately, these newcomers bring diversified skills to the workforce, which helps grow the total pie and everyone benefits – by driving productivity and innovation.
With our current skill shortages, immigration has an important role to play – initially, by plugging the glaring gaps in our workforce. But more importantly, by creating growth and improvements well.
Australia has long benefited from the cultural richness and diversity that immigration has given the nation, but we sometimes forget the economic benefits.
Bottom Line: There is no doubt immigration has introduced cultural richness and diversity into our society. However, we should also be aware of the economic benefits across every sector of the market – including Commercial property.
Best wishes …
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.
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.
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.
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.
Engage a good property advisor, lawyer, accountant, builder and property manager to help you navigate the process of buying and managing a Commercial property.
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.
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.
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.
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 …
THE QUESTION OF Due Diligence is an interesting one.
There are two schools of thought. Some people believe they should undertake all the due diligence investigations BEFORE actually making an offer and finalising the commercial terms of the deal.
There are a couple of issues here – number one is: Due diligence, done properly, costs money. Therefore, my approach has always been not to spend money until you have control of the property. [Read more…]
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…]
IT’S ALWAYS INTERESTING to discover some Commercial property investors still feel contracts there’s a need to include a “subject to finance” clause – so they can check whether or not funds will be available.
However, they are in fact approaching things from the wrong angle. You see, you don’t need your finance approved before entering into a deal. [Read more…]
DESPITE THE RECENT new Omicron variant, consumer demand is surging against the backdrop of labour shortages, supply chain blockages and recent price increases.
All of this is causing confusion and some concern. And pundits around the world are detailing strong Inflationary pressure – which usually means interest rates are likely to increase, sooner rather than later. [Read more…]
IT’S OVER 18 MONTHS now since the pandemic triggered a total disruption to our everyday office routines – causing millions of people to work from home.
As we move into the second year – many established companies are still undecided on the new workplace model going forward. [Read more…]
IT MAY SURPRISE YOU to learn that new businesses grew at a record rate during the last financial year. And that’s because COVID-19 served up a whole host of new opportunities among the economic turmoil.
Apparently, there were 365,500 new start-ups along with 277,700 established businesses closing shop – delivering a net gain of 87,800 new businesses.
As encouraging as that may sound, these newcomers will face challenges going forward – given they began in a climate of low interest rates and government support.
Nonetheless, they will clearly add to the demand for suburban office space – as workers seek to avoid the grind of a long daily commute.
Add to that the large CBD firms currently decanting whole departments out to the suburbs – to also be closer to where their employees live.
Bottom Line: Every change (however disruptive) brings with it seeds of opportunity. Sometimes these are hard to recognise – but highly profitable, for those who do.
THERE HAS BEEN much talk about Commercial Property emerging post-Covid. So, let’s quickly explore just how things are likely to unfold. [Read more…]
