Countering Low Yields With Big Upsides

I’ve had an eye out for a small shopping centre recently, and I’ve noticed a few things. Competition is slightly up on what it used to be and cap rates are lower than they have been over the last few years for this kind of property and in this price range. I was just doing the numbers on a deal review for my students on a multi-tenanted shopping centre in a great location. Based on the numbers the yield is a little lower than I …

Using Hidden Potential As Exit Strategy

There are a couple of things that are my first port of call when it comes to working out if a deal is worth my looking at further. First of all, is the deal I’m looking at, based on initial (back of napkin) calculations, going to be cash flow positive from the day of settlement? That’s the single most important thing I want to know about any property. When I do my calculations, I look at everything from council fees, management costs, even travel costs …

What it takes to be successful in commercial – I go on a rave!

If you were looking for information on how to invest in commercial property from one of the big “Authority” real estate sites you’d quickly find yourself well out of your depth when it came time to buy a commercial property. You may be unlucky enough to be in s#!t creek without a paddle when you start to sink! Why? I was reading an article from one of the big RE sites this morning, and I had to laugh… and then cry at the kind of …

Why Commercial Beats Every Other Asset Class For Investing

Finance experts reckon more fortunes have been made through land than any other asset class available. and they also say that commercial real estate is one of the most dynamic investment classes in the world. Commercial real estate is the only major asset class that produces high yields, significant equity buildup, can be efficiently leveraged for massive gains, has the security of a hard asset that you can see and touch (intrinsic value regardless of an income stream), and provides some of the best tax …

Negative Gearing – The Exact Opposite Of What Commercial Investors Look For

Recently the Weekend Australian newspaper reported that landlords have lost over $43 billion in the last decade on the rental investments. Mostly residential. So you’d be right in asking what is the point of an investment property? Surely it is to put you on the path to financial freedom? Yes, I know they say that freedom means different things to different people – but it’s hard to see how taking a loss every year really represents any kind of freedom at all. I get what …

Got Mates? Syndicate deal example

Capital city returns are under some pressure at the moment and are feeling the squeeze. Yields are getting smaller in many cases as more competition comes into this market. Burgess Rawson recently listed a range of capital city buildings, mostly offices, with yields as low as 4%. Now while there may be some upside in these properties at current interest rates they are going to be taking a loss on this property. That’s just crazy. If a property is not cashflow positive from the day …

100% finance and getting a payrise

One of the reasons Australians has such a love affair with property investing has got to be the fact that property values keep increasing year after year. In Most places, the price doubles every ten years, so if you get a mortgage for say, $400,000, ten years later (if you’re in one of those areas), it will be worth twice that. Many people have realised that you can refinance and use that equity in their home to go out and buy another property that also …

Square 1 For Commercial Investment Newbies

If you are a novice to commercial property investment, today is your lucky day. I am going to answer all your questions and give you the low down on getting into the market. I often write for people who have a fair idea what commercial is all about but occasionally I get people coming to me with the most basic of questions and I feel it only fair to create a springboard to get people started with why I love it so much and how …

3 investment opportunities you should never talk about to a diehard residential investor – you’ll break their heart

Let’s start with a test. Just Google ‘Commercial Real Estate Australia’ to see the vast amount of places you can park your money across the country. To all the novice investors out there, let me cut through the noise. Here is an insight into the types of commercial property that will put you on the quick road to riches. Firstly, Apartment Blocks. These can be small five plus apartments or multi story building covering city blocks. It does not matter if you are buying a …

Is online shopping killing commercial property investing?

“Why online shopping is driving some business to the wall but it’s not touching my commercial property portfolio” There’s been a lot of talk recently about the impact of online shopping on Australia’s commercial property market. The naysayers would have you believe that e-commerce will sound the death knell for Aussie retailers and that commercial property is a risky asset class as a result. It’s hard to deny that some businesses – such as clothing outlets, bookstores and speciality shops – have been feeling the …