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 …

Are Your Assets Wrecking Your Life?

Here’s a description of some investors that you’ve probably heard. It goes like this: “Asset rich… Cash-poor.” We’ve all heard that description, right? I get that having assets is great for a long-term strategy… When it’s time to retire at 65 or 70, you’ll be in a good place… But to me… I believe that it’s the biggest con ever perpetrated on the general populace. It’s like living in poverty in the vague hope that you will be living on easy-street later in life. Die …

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 …

I painted this picture years ago – You’ll never guess where I found it.

I once painted a picture to hang on the wall of the house I was living in. It was a bit of a blank wall and I was feeling artistic. For this painting, I wanted to convey the feeling of warm sunlight pouring through a window. Is not the only painting I’ve done over the years, from time to time I get a brush out and do something interesting with a canvas, … but this one is a little different… over the years this one …

Sex Drive and Success

When I was younger and had more energy than I do now, I did a lot of renovations. I’d work all day at my job then renovate at night and all weekend. I loved it and over the years I’ve done more renovations than I care to remember. I had ‘hustle’ You can get away with burning the candle on both ends when you’re younger. As I’ve got older I’ve found that I’ve still got tonnes of energy – I just need to consider how …

The Potential Silver Lining To Sacking Your Tenants

If there’s one thing that I hear more than any other when it comes to people not jumping into commercial investing with both feet it’s this: What if I lose a tenant? And it’s fair enough really. If you have a property that is a single tenancy and they don’t renew their lease or if they go bust and stop paying their rent then, sure, there is the potential of the property costing you some money for a while. There’s nothing worse than buying a …

How Much Cash Flow Could I Get Using My House Equity?

“How much can I get in cash flow from the equity in my house if I invest in commercial property?” That’s the question that came up recently. It fits the age-old saying “How long is a piece of string” and it’s not far off “what is the sound of one hand clapping”. But, never afraid of a challenge, I’ve decided to try and quantify the length of string to help you get a handle on commercial returns. You might even be able to use that …

Focus on cash flow but don’t get obsessed

  Most people work for 40 years or more before they retire. That’s a long time to commit yourself to building your retirement nest egg. Not to mention taking 25 or 30 years of that to buy your home. Did you ever hear that Bill Gates quote – I think it’s Bill Gates – Might be Tony Robbins… “Most people overestimate what they can do in one year and underestimate what they can do in ten years.” ― Bill Gates or Tony Robbins… Maybe some …

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 …

New rules for developers – but who cares?

I’ve noticed that some councils have started to allow people to build much more on house blocks. It used to be that a 350 sqm block used to be the smallest house block you could build on… And you could build one house, and that’s all. Architects, small developers and a population increasingly worried about affordability have been pushing for smaller options. There’s already a “small house movement” where people are building homes on the back of large trailers… But now some councils are dipping …