The Impossible Approval

Just wanted to let you in on the latest developments with one of my properties. This is a property in Newcastle – you may have seen the picture of the shop at the end of the row before… But based on the success of my Bondi project where I got a 3 story apartment build by a modular company and then installed in a single day, I started looking at what I could do with this property. I looked at doing something like this years …

Suddenly the rainbow ends in South Australia – will other follow?

South Australia is burdened with the highest unemployment rate out of all the Australian states. It also had a sluggish economy, and its property market drags its heels like a sulky kid who dropped his ice-cream. But a few years ago the South Australian government conceived of a plan to change all that. It’s been slowly phased in over the last year or so and sometime this year it will be in full effect. The SA govt has bravely gone where no other state government …

Getting creative with the rules of finance

The big 4 banks would have you believe that they are the one stop shop for all your lending needs. They’ll tell you that they are “reputable” and other lenders are not (they won’t say it out loud but they will imply it)Truth is that there are heaps of lenders out there. Second, third tier lenders and even private lenders could be used to get you into the deal you want. It all comes down to deciding what is going to work best in the …

New tax rulings could cause a dump of great commercial properties on the market

Giving you info on tax rulings and the like is not my bag, as you would know if you have read my blogs for a while. How you deal with your tax implications is up to you. We all have to make our choices. However, this news is a slightly different kettle of fish. New tax rulings have come into place which is going to negatively affect all the people who already own commercial property in their self-managed super funds. It goes something like this: …

Are We Seeing A New Breed Of Shop Opportunity?

I’ve mentioned that I’ve been upgrading my Bondi property by adding new apartments to it out the back of the existing commercial building. To not disturb the tenants (or at least as little as possible), I opted for a prefabricated modular building design. It means that the buildings are built in a factory and delivered and installed very quickly. It takes the actual on-site construction time from 9 months to 4 weeks or thereabouts. It was the convenient way to build in this instance, but …

Yields, Valuations and Hidden Opportunities

Investors will often hear the term Yield or Capitalisation Rate. (Cap Rate)   What is the difference between them?   Well not much…Essentially they are the same but are derived from different sides of the analysis.   From a valuation perspective in the case of an untenated property the rental is capitalised to determine a freehold capital value whilst a property that sells in the market with an income stream in place establishes the yield achieved.   Either way both terms establish the same thing …

double your cash flow with short term stays

Like any smart investor I have a diversified portfolio. I have both commercial and residential properties on the go. Not only that, I have some residential that is just that… rented out as a family home. I also have residential that I treat as commercial and let on a short term holiday basis. Why? Balance. It means there is a nice balance of capital growth and cash flow. In the long term, this kind of balance provides stability. It means that you become, in a …

Small spaces are getting bigger

Small is good for some retailers and office spaces who are coming round to the idea that small is the new black Rising rents, low vacancy and the seamless integration of brick and mortar shops with e-commerce is driving retails to opt for more boutique style shops. Even online-only operators are opting for small offices because they have few staff and even outsource much of their required workforce. I especially noticed it last time I was in Sydney, but apparently, Melbourne is running the same …

Forget International Finance and Start Enjoying Life

More speculation in the media about the future of commercial property this week with the RBA expressing concerns about a “growing disconnect between prices and fundamentals”.   I’m no economist but I have to wonder about that. Aren’t prices a function of fundamentals?   Supply and demand for instance.   Maybe fundamentals just need a bit of a catch up.   That aside I think it’s risky to assume that we, while reading this doomsayer prediction, are comparing apples with apples.   The rest of …

Frightening prices could actually be helping us small fry.

The global hunt for better yields continues and more na more people are diving into commercial property. An article on AFR this week called commercial property prices “frightening” . And in may ways it’s true. Yields have not been this tight since before the global financial crisis and with all the media hype and more relaxed international investment boundaries money is pouring into Australia looking for the best return. At the moment the best stable return is in commercial property. It makes you wonder whether …