Forget About Serviceability – This Fixes That!

If you are serious about property investing then it’s probably going to be something you do more than once. Yep – I know there are a stack of people out there in property investing land who have bought themselves an investment property, maybe even two… In fact that’s the vast majority of people in Australia who call themselves property investors. But those guys aren’t serious. The reason they have only bought one or two is that they are probably negatively geared and they have run …

Making Strata Titled Properties Work

If you are looking at commercial property in the lower price range one of the types of property you will find a lot of are properties that are already strata titled… They might be offices or single shops in a larger building and you are just buying one of them.   These tend to be more set and forget type properties because they have already been divided up in the building and usually there are few, if any upsides. However they will be cashflow positive …

The Commercial Lease Advantage Equals Free Money

Australia is in love with property. Even since the dawn of the great Australian dream: The quarter acre block with a house on it.   In the beginning (at the risk of sounding like the bible there was the 14-acre block. Then there was the idea of owning a beach house or a shack at Bonnie Doon so you could enjoy “The serenity”.   Over time, as with so many other things, our dreams have gotten bigger. The 3 bedroom house on the 1/4 acre block …

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 …