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 …

How to Best Invest 800k – two case studies compared

If you’ve got some equity in your home… say $200k or more, chances are that you want to invest it to make your life better. That gives you a lot of options. Recently a saw a similarity in one of my own properties and another commercial deal I saw happen, they were both valued at a similar price so I thought it would make a good comparison of the choice at hand… whether to buy commercial or residential. Despite the perceptions of some (and my …

Focusing On The Basics Gets Results

I recently ran a contest from within the members of my Commercial Property Cash Flow Blueprint course. I wanted to hear stories of what people were doing with the information.   I was blown away with some of the awesome stories that came out; the action people were taking and the results they were getting.   I’ll show you some of them if you’re interested.   However, I wanted to break it down to basics…   Why?   Because that’s what these guys focused on… …

*Block* Thinking For Higher Commercial Returns

  Australia’s a funny country. They reckon property is a national pastime, yet only something like 6% of the country actually invest in property. Of that 6%, it’s only around 1% have more than 1 investment property. So what are the other 99% of Australians doing if property is a national pastime? My guess? Watching telly. They are watching ‘the block’ and ‘renovation rescue’ etc They are going down to Bunnings and buying tools so they can do little renovation jobs around the house. Even …

Converting Commercial Into Residential – What?

  Part of owning an investment property is working out how to get the best returns in any given market conditions.   Sometimes that means actually converting a commercial property into a residential property. So how can you take advantage of this trend?   In the words of one of the world’s most successful commercial real estate developers, Donald Trump; “If you’re thinking already, you might as well think big.”   At least that’s one his more quotable quotes. (There are plenty of others I’d …

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 …

Why I told my young niece to go commercial

My niece was looking to buy her first investment property and sent me a house selling for 400k wanting to know what I think. I made this podcast for her and you… comparing her house with a 400k commercial property I found online this afternoon. Not sure what to buy – this will show you the difference in returns.  

9 Questions You Must Ask Before Investing In Commercial

How long is a piece of string? It’s a throwaway line that gets tossed out when someone asks a question to which there is no single best answer. And that’s exactly what I have to say when someone asks if Commercial real estate is for them. It does tend to attract a specific kind of people. More entrepreneurial types rather than “mum and dad” investors. Commercial attracts people who actively seek out ways to get greater returns and to take more proactive action to put …

Fact, Fiction and Finances

Like many hot button issues in real estate investing, debating whether you invest in residential or commercial is often not one that comes up. Sadly the majority of “investors” – (Notice the inverted commas… if I was telling you this in person I’d be using “Air-Quotes”) get no education around investing at all. They’ve bought a house or two and know how that works… So when their accountant suggests, they buy an investment property… they go do what they’ve already done before… Then they work …