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 …

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 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 …

New tax rulings could cause a dump of great commercial properties on the market

Giving you info on tax rulings and the like is not my bag, as you would know if you have read my blogs for a while. How you deal with your tax implications is up to you. We all have to make our choices. However, this news is a slightly different kettle of fish. New tax rulings have come into place which is going to negatively affect all the people who already own commercial property in their self-managed super funds. It goes something like this: …

Solid Opportunities For Small Investors

More and more media outlets are talking up commercial and generating more interest in it. Combined with sustained low-interest rates and falling value of the Australian dollar are certainly among the reasons for the increase in offshore investment in Australia real estate. Also it’s feeling like there is a higher global demand for Australian commercial property means more competition for scarce assets, which is driving prices up fast. But for the average small time investors like you and me (yes I still include myself in …

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 …