When Buying … Why Would You Accept a Passing Yield Lower Than Market Level?

ON THE FACE OF IT … there’s no logical reason why you would.

Unless of course, you were intending to occupy the property when the current lease expires. In which case, the initial low rental is really of little (or no) importance to you. [Read more…]

Why Choose Commercial Property Over Residential?

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Commercial

OBVIOUSLY, THIS IS the question every residential investor asks … whenever they are considering the transition across to Commercial property.

However, you will quickly discover the reasons are rather compelling. [Read more…]

What Can You Do When Your Tenant Leaves?

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Empty-Office

THE FIRST THING you need to do is come up with some creative ways to address this … AND still maintain your sanity, at the same time.

But no matter what your approach may be, there are several things you always need to do. [Read more…]

7 Ways to Add Value, Fast

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Upgrading your property
COMMERCIAL PROPERTIES are mainly seen as a longer-term (at least 3-year) investment. And you tend to buy them for their regular, high yields; as well as for some good capital growth over time.

Even so, an investor with a little knowledge and experience can easily find properties able to be “upgraded” and then, on-sold for a quick gain.

Typically, this would involve you in improving the income stream from your property; and perhaps the security of that income. Both of which would result in a boost to the property’s overall appeal AND value.

Your Options for a Fast Turnaround [Read more…]

Getting All The Adjustments Correct at Settlement

Settlement

IN THE CONVEYANCING stage, before settlement, the vendor and purchaser adjust the purchase price to deal with the following matters:

  • Periodic payments of all statutory outgoings (such items as council rates, water rates and land tax); plus …
  • Rent and outgoings payable by a tenant under a lease. [Read more…]

Part 2: More About Your Loan Security

Loan-Security-2

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…]

What Creates Security for Your Loan?

Loan-Security

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…]

How to Claim Depreciation on Your Older Commercial Properties


older-building

ARE YOU FAILING to take advantage of the depreciation deductions available on your property because you believe your property is too old to warrant making a claim?

Your assumption is wrong and you could be missing out on valuable deductions. [Read more…]

With Commercial Property … Balance Wins the Day

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Sub-Lease-Space-L

THIS CHART APPEARED as part of a recent article in the Financial Review, by Mercedes Ruhl (30 October, page 41).

The article reassured investors that the anticipated short-term surge in sublease space (within Australia’s CBD Office markets) has simply not eventuated.

“Sublease space spikes at times when the economy is weak and business confidence is low because companies are restructuring and downsizing.”

Furthermore, the article suggests the overall amount of sublease space is expected to fall sharply over the next few months — following the post-election improvement in business confidence.

And of all the capital cities, the CBRE research shows Melbourne has provided the greatest improvement over the past year. [Read more…]

Depreciation Differences: Part 2

ComVsRes-Depn-2

Commercial Vs Residential Property.

LAST WEEK, we covered the different types of Depreciation and the depreciation rules for tenants in Commercial properties.

Read on now, for the rules for claiming occupancy in a Commercial/Residential property — plus another useful tip, when it comes to when claiming deprecation. [Read more…]

Commercial Vs Residential Property … What are the Depreciation Differences?

ComVsRes-Depn

THIS IS THE FIRST of a 2-part article, to help provide you with a useful comparison between the depreciation of Commercial and Residential property.

Investors considering purchasing an investment property will often enquire whether a Commercial or a Residential property will provide them with more deductions in the form of depreciation.

However, there are many important factors you need to be aware of when making a choice between these two investment options. [Read more…]