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 …

1 Tip For An Instant Equity Boost

There are a few things which I like to pay attention to when looking for commercial property. Once of the simplest ways to grow your equity very quickly is to look for properties where the current rent is below rents of the area. Some agents will know what the rent for an area should be based on the property type; others can be very vague about it. You might think that this is not something that would happen very often, but it can happen. The …

Hidden Wins: What the media won’t tell you and what failures will

I reckon that only about 10% of the pool of investors in Australia even look at investing in commercial. The rest squabble and fight it out over underperforming residential stock. Why do you think that is? There are a few reasons, but I believe that the biggest is fear and misinformation. The one causes the other. I was looking at a property the other day, and the seller wanted way too much for the property. I did some quick calculations and worked out what the …

Getting Creative With Commercial

Over the weekend, I was asked a question about commercial that got my attention. A lady who had been burned before in property was left with an old slightly run down factory in the inner suburbs of Melbourne. It was a warehouse with a loading door and some office space and very high ceilings. The last tenant moved out over 18 months ago, and no-one has wanted to rent it since. She was asking for ideas. Of course, I had a few, but as I’ve …

Stock Market Trading and Commercial Property

When people learn to trade the financial markets like shares, options and the like, they all learn in 3 stages… You look at all the trading rules or you watch the markets and try to define a set of trading rules that you are going to follow – this is your system. You “Paper trade” your system and work out all the kinks as well as make sure you can actually follow the rules. This gives you an opportunity to trade without having real money …

An $X Million Property Or Several Smaller Ones? Which Is Best?

I get this question a lot from people starting out in commercial property. I’ve got a bunch of equity in my home or residential property portfolio, and I keep seeing properties that are in the (insert large number here – between 1 and 5 million)… Would I be better off buying a ‘X’ million dollar property or buying ten smaller properties? Well… Good Question. And like all great questions around property, the answer is always the same: It depends… If you already have a decent …

Commercial Property And Global Market Fluctuations

So NAB and CBA have just posted their quarterly commercial property survey. It goes hand in hand with one of my students bringing me a bunch of negative stats about the global economy. The surveys show the commercial property index rising +17 points. Overall improvement led by the hotel sector ( I’ve covered this in a previous article). Retail confidence is down and lots of data about the house price index and slowing growth in the home buying sector. The global economy is showing signs …

What Are The Best Tenants And How Do I Find Them?

In the right location, great tenants are easy to come by. Time was that Byron bay was filled with hippy shops and organic lentil burger shops. I love that stuff, that’s one of the reasons I moved here… Not the hippy shops… the health food. That and the perfect surf climate. As Byron’s become more and more popular though all those little shops have become forced out of the main drag and either out of business or out of town into the back streets. The …

3 Huge Reasons Why Commercial Eats Residential For Breakfast For Investors

I love commercial property. It’s been the one investment model that has changed my life more than any other. I’m biassed ok, let’s just get that out of the way. When people tell me how good commercial is I’m quick to tell them, they are preaching to the converted. But for those not already converted… here’s why I find is so much better than residential. 1-Leases The biggest reason I believe is that the positive cash flow is so much more effective than other types …