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 …

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 …

How To Choose The Right Builder For Your Next Commercial Development

Over the years I’ve done various forms of works on commercial properties, from simple renovations to full developments and one thing I’ve learned is this: Not every builder is going to right for your job. Thanks to trial, error and many years under my belt in the commercial space I’ve developed a few rules to help me always find the right building for the job, the budget and the timeline. In today’s podcast I share with you the benefit of many mistakes and much experience …

Curing Deal Breaking Due Diligence Obstacles

How to cure deal breaking due diligence obstacles you might find when you are investigating otherwise attractive commercial deals.   Sometimes a deal looks great, but when you start looking closer you find things in the due diligence that turns you off.   Sometimes these things might be red-flags telling you to move on, other time it’s can just take a little creativity to turn the deal around and make it work.   I’ve seen too many deals go sour because the buyer has not …

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 …