Why buying remotely is stupid – It pays to go look at it.

I’ve seen quite a few deals where people have bought commercial properties based on the numbers and images from the agent. While, as you know I’m all about the numbers… My basic rule of thumb is the numbers have to work… Never buy based on gut instinct or anything like that. But here’s the deal. If the numbers work… you still should go an inspect the property. Over the last few months, I’ve been looking for a shopping centre to buy. I’ve made an effort …

The 6 core investment objectives for Commercial Property

If you’ve read a few of my emails you’ll know that I’m all about the cash flow… Or so it seems. It’s easy to talk about the cash flow because it leads to what I call the cash flow lifestyle… That’s where I tell you about how I go surfing every morning and lead a pretty chilled life. It’s easy to talk about that stuff because that’s the sexy side of commercial investing… …but it’s not the only thing I look for. It’s one of …

Getting the best price for your commercial property at sale time

For me, commercial is a buy and hold investment. I want good solid properties with little or no maintenance issues… and most importantly, strong leases, good cash flow and happy tenants with stable, successful businesses. When I get properties that like I tuck them away and keep them for the long term. Honestly, why would you ever get rid of a property like that? Having said that… of course, there are times when you’ll want to sell. Maybe it’s underperforming. Maybe there are better opportunities …

How to protect yourself against market fluctuations

It’s funny; I got an email today from someone telling me that they thought that it was not a good time to buy commercial property. They claimed that cap rates are too low to make a profit and the market is too unstable. That interest rates were about to rise, and we are all due for another recession. They also quoted some newspaper talking about how Amazon is coming to Australia, and it was going to kill the retail market in Australia. I dealt with …

Interest Rate Tipping Point How commercial and Residential Compare

The pattern for someone investing in property is that they get told by their accountant to buy negatively geared property to offset their tax. All good – they find a home they can afford, get some renters in and enjoy getting a little of their tax. After a while, the value of the property goes up a bit, and their accountant tells them to refinance and do it again… That’s when the trouble starts. They get the idea that more is better and they want …

Is Amazon Going To Kill Commercial Property?

I got a plaintiff email the other day from someone asking this question: Will Amazon Kill Commercial Property In Australia? If you live under a rock or never read the news, you might not know this… Amazon (the American retail giant) is coming to Australia. They’ve bought warehouse space in Sydney and are ready to move in. Apparently, it’s going to kill Australian retail. People will go out of business everywhere, and it’s going to end the Australian economy. God the mass media love a …

5 keys to choosing a better commercial property investment

When you start looking for commercial property to invest in, there are fundamental factors you need to consider. When you go to buy a residential investment, for instance, you’d never just go out and buy the first thing you come across that you can afford… You pick your area, the kind of property you want, etc The location of a property can mean the difference to having trouble free ongoing income or not. Of course, location is not the only factor – but it’s pretty …

What Makes A Good Location For Commercial

When searching for a commercial investment what makes a good location? Often when I am checking out an area, I will visit several times – at different times of the day and different times of the week. This is especially true when it comes to retail and shopping centres. Sometimes I feel like a PI staking out a shopping centre. But this kind of recon is essential to give you an idea of how busy the property is, how much foot traffic there is, the …

The Hidden Potential Of Short Term Commercial Thinking

  Most people buy commercial property as a long-term investment. They buy for their consistent high yields as well as for good capital growth over time. That’s certainly how I teach my students to buy good commercial properties. That being said, we’ve all heard of people buying run down old houses, doing a quick reno and selling them off again for a profit. That’s how I got started in real estate many years ago… …Buying old houses and flipping them. So how does that work …

Forget the market – Focus On The Fundamentals

  With the markets tighter than they have been for years regarding yields more commercial property owners are considering selling in the hope of making more money. It’s a great time to sell for vendors and a harder time to buy (in some ways) for investors. I say harder… because returns are slimmer than they have been in recent years. On the other hand… interest rates are still ridiculously low. When I started interested rates were over 15%, so I look at 5% as a …