Negative Gearing – The Exact Opposite Of What Commercial Investors Look For

Recently the Weekend Australian newspaper reported that landlords have lost over $43 billion in the last decade on the rental investments. Mostly residential. So you’d be right in asking what is the point of an investment property? Surely it is to put you on the path to financial freedom? Yes, I know they say that freedom means different things to different people – but it’s hard to see how taking a loss every year really represents any kind of freedom at all. I get what …

What makes a good area to invest? Here are a few ideas…

Investing in retail is one of my favorite types of commercial to invest in. I love finding a strip of shops that has a variety of different shops and is surrounded by a large chunk of residential. If an area has, for instance, a few cafes, and the other regular daily use shops like a bakery, hairdressers, estate agents, supermarket, bottle shop, etc. these can be local hubs for residents of the area who like to shop and eat locally. Many estate agents will advertise …

Creative Commercial Property Contracts

Residential property investors understand conditional contracts. To sign a contract subject to a pest inspection, for instance, is fairly common practice around Australia. In fact, conditional contracts are a great way to lock in a deal but give you an out based on certain conditions. Sometimes these conditions are based on your personal conditions as they purchaser; sometimes they are to do with the property itself. Common property based conditions are having the purchase being subject to a pest inspection, or a building inspection, etc., …

Got Mates? Syndicate deal example

Capital city returns are under some pressure at the moment and are feeling the squeeze. Yields are getting smaller in many cases as more competition comes into this market. Burgess Rawson recently listed a range of capital city buildings, mostly offices, with yields as low as 4%. Now while there may be some upside in these properties at current interest rates they are going to be taking a loss on this property. That’s just crazy. If a property is not cashflow positive from the day …

How To Get Vendors Out Of Fantasy Land

I was looking at a deal recently where the numbers just didn’t add up. For me it was time to move on and keep looking. However, there was good upside on this property and could still be worth looking at depending on whether you could get the vendor’s head out of the clouds and back into reality. The problem is that those who do not have a good understanding of commercial property will think that they bought the property for price x and they automatically …