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…]
YOU WOULD no doubt be aware of the benefits of “Negative Gearing”. But most investors have a very poor understanding of how much more money Depreciation can actually put back into your pocket.
Even if the Commercial property you plan to purchase might not be brand-new … you are able to “up value” the various components within the building, to reflect their actual current-day value.
By doing that, you are then in a position re-depreciate them, and gain the maximum tax benefit for your bottom-line. [Read more…]
THE FOLLOWING Buying Criteria are ranked in what most investors consider to be their relative importance.
These two criteria alone could prove to be most important in achieving your Investment Objectives. What you’ll look for is a strong corporate (or government) tenant, with a minimum of a five-year lease term.
With that in place, you’re well on your way to making a successful investment. [Read more…]
Buying and negatively gearing a Commercial investment property is not forever in one — particularly, with interest rates on the rise.
And if you already have high personal debt … adding to that wouldn’t be a smart move on your part.
Negative Gearing
Any gearing you decide to take on, should be viewed as part of your overall strategy — and not there simply to minimise your tax bill.
[Read more…]
