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 …

3 Compelling Reasons to Switch From Residential to Commercial

When you’re long term thinking you start to see real estate as the safest place to put your money. How many people spend their lives putting money into super and when it comes to retirement they’ve got hardly enough to live on because of inflation, market fluctuations and below average returns coming from a poorly managed super fund? Luckily we’re not in America where some retirement funds have dried up and vanished completely. Even if the market crashes, your property is still there and if …

The Biggest Fear To Commercial Investing and 4 Ways to Overcome It.

Do you want to know what I think is the single biggest fear that stops people looking at commercial property? If I hear one single reason why people don’t want to look at commercial, and it not only stops them looking, it stops most people from even learning how to overcome that obstacle… It’s like a completely paralysing, irrational fear. It’s this: What If I can’t find a tenant – What if it is untenanted. Obviously, it’s not ideal to have an untenanted property, but …

Cash Flow – It’s not all about lifestyle

I moved to Byron Bay over 17 years ago to do a renovation on a property. I never left.   For me, commercial property has allowed me to live a lifestyle that I wanted to live. To be able to get up and go for a surf in the morning, to live a healthy, stress-free lifestyle and work when I feel like it.   In fact, I love property so much it generally doesn’t feel like work. It’s as much a hobby or an art …

3 Important Questions to Ask For Creative Deal Making

The stats for how many investors are in Australia are out there, and they are quite high compared to many countries. Sadly though where they have drawn the line as to what is an investor and what is not is pretty low.   If you own an investment property – then you are an investor.   Well, that may be, but it’s also like saying if you own a car then you are a race-car driver. If you own a surf board, then you are …

Turning Due Diligence Red Flags Into Negotiation Pivot Points

When it comes to investing Due diligence is important… you don’t have to be a rocket surgeon to know that. However, it can be, especially at the start of your investing career, sometimes confusing and scary… How do you know what’s a deal breaker and what obstacles can be overcome and still keep the deal a winner? The answer is not always easy, but it comes down to research and good communication. Here’s an example I recently gave in a podcast of a property where …

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 …