Insider Tips to Help You Discover How to Succeed with Commercial Property
WHEN PURCHASING A COMMERCIAL PROPERTY, the valuation is a key element in the financing process and in providing the buyer with comfort in their purchase price.
For the wise investor, it is important to have some understanding of how valuations are conducted.
Doing so will establish confidence that the valuation will not pose an issue with finance and also act as a basic tool, to verify a purchase price or estimate asset value for existing properties. [Read more…]
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AS A COMMERCIAL PROPERTY investor it’s important for you to keep tabs all the separate markets around Australia.
To help with that, a recent market update by Credit Suisse places in Sydney and Melbourne CBD Offices as the best performers over the next three years.
However, Brisbane and Perth are expected to deteriorate further from where they are at present. [Read more…]
AS THE NEW YEAR BEGINS, many commercial property owners might be formulating their annual New Year’s resolutions.
Commercial property owners often think about the ways they can reduce the costs of owning their property and running their business. However, when they do so, the deductions they can claim via depreciation are not always top of their list.
Many commercial property owners still do not maximise the depreciation deductions available from their Commercial properties. [Read more…]
AS YOU PROBABLY realise, this is not quite as simple as it may seem. And yet, all you need to do is follow some clearly defined procedures. [Read more…]
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THE ANSWER is both Yes and No … depending upon which country you live in.
Last weekend’s Financial Review reported an analysis by Oxford Economics, which predicted the likely effect upon GDP during 2015-16 … of oil being at $US40 Vs. $US84 per barrel.
And a quick summary of that is included over on the right. [Read more…]
IN NOVEMBER 2010, a bottle of Chateau Cheval Blanc sold at auction for over $335,000.
However, many winemakers and vineyard owners are currently unaware that they could be sitting on a similar amount of cash in the form of property depreciation.
Like fine wine, great wineries also age and this process can be just as lucrative as it is for a good vintage.
By claiming depreciation deductions due to the gradual wear and tear of the building structure and the plant and equipment assets within a winery, owners can receive substantial returns from the Australian Taxation Office (ATO).
The following table provides an example of the depreciation deductions one vineyard owner could claim for a winery established in 1990:
As the table shows, the owner was able to claim $89,190 in depreciation deductions in the first full financial year alone.
Over the life of the property (forty years), depreciation deductions amounted to a whopping $1,284,240.
To ensure that depreciation deductions are maximised, winery owners are encouraged to enlist the services of a specialist Quantity Surveyor to prepare a tax depreciation schedule.
The tax depreciation schedule will outline all of the deductions available for capital works (the structural elements).
The schedule will also show the plant and equipment items contained for the winery owners Accountant to lodge their claim with the ATO at tax time.
During the process, a site inspection will be performed to ensure all of the plant and equipment assets found in the property are accounted for.
Some of the common plant and equipment found in wineries which can be claimed include oak barrels, fences, grape bins, presses, barrel racks, barrel washers, signage, carpet and corkers.
Bottom Line: Winery owners who would like more information about the depreciation deductions they are entitled to should contact one of the expert staff at BMT Tax Depreciation.
IN PART 1, you discovered the main breaches that lead to non-compliance. This article outlines the very ugly tax consequences of being labelled non-compliant by the ATO.
SMSFs are subject to income tax but receive concessional treatment — provided they are complying funds.
A complying SMSF’s assessable income is generally taxed at a rate of 15%. BUT for a non-complying fund the rate is 45%. [Read more…]
IN PART 1, you saw how changing the use of a property can affect the loading requirements — and what it can cost you.
Read on to find out who is actually responsible for determining floor loading, Australian Standards, and how to protect yourself. [Read more…]
IN THE CONVEYANCING stage, before settlement, the vendor and purchaser adjust the purchase price to deal with the following matters:
IN THE LAST article, you read about two different types of security that lenders can take other than the mortgage. They were “Fixed and Floating Charges” and “Personal Guarantees”.
However, there are a few other forms of security that you should be aware of before entering into any agreements. Read on to find out more. [Read more…]
WHEN YOU TAKE out a property secured loan, you understand that a lender will register a mortgage against the property that is being secured.
However, typically, when you read through actual loan agreements, the mortgage is just one part of the security that is taken.
In this article, we will be looking at some of the other types of security that lenders will typically request when applying for a loan. [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.
