How to buy commercial properties that aren’t for sale

  Every movie that includes a big business, a wealthy tycoon or a bloodless tyrant will tell you that everyone has a price. To a point, I do believe that’s true. I had a movie star get shown around my property a while back by an agent… And even though I knew I didn’t want to sell… …I also knew (If I’m being completely honest with myself) that were the offer good enough I’d have considered it. Thankfully his offer was nowhere near that invisible …

The foolproof way to find the true property value

What’s a commercial property worth? Its value is as much as a piece of string is long. Defining the value of a property is the job of valuers, and I don’t envy them – it’s not an easy job. It’s full of guesswork and unquantifiable things. I was looking at a student deal the other day – (It’s not a done deal they are at the initial investigation stage) There was a retail space with a residential space above. The retail was leased – a …

This could be an untapped commercial goldmine

Chances are that you’ve heard news of Amazon coming to Australia and people claiming it’s “end days” for Australian retail. Manufacturing in Australia is also looking pretty shabby for the most part… the big car plants have all been outsourced to Asia… And of course china is flooding the market with products so cheap that no one here could ever compete… So where do we look for safe places to buy commercial in industries that are on an upswing, not a downswing? Well, a recent article …

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 …