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 …

Booming Hotel Sector or Reality – Which should you invest in?

I was reading an interesting article the other day: Here’s the link: The gist was this. That the commercial property market was at a high as of 4th quarter last year. The highest confidence being in hotels. The attribute this to a suppressed Aussie dollar bringing in more tourists and there being a shortage of rooms… Second highest being in offices. Industrial being weakest… Retail was somewhere in the middle. They said retail was lower because, they said “Sentiment in the retail property sector was …

This Brisbane Sector Ready To Rocket

Get Ready… This Brisbane Commercial Sector Is About To Rocket Last year in doing property search videos and deal reviews for my students it was obvious to me that Metro yields for the capital cities were down on the previous year. In some cases, net yields were as low as 5%. It was no worries for me and my students as we concentrated on other areas where the yields were much higher. The record being a yield I spotted that was in the 16% region …

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 …

What makes a good area to invest? Here are a few ideas…

Investing in retail is one of my favorite types of commercial to invest in. I love finding a strip of shops that has a variety of different shops and is surrounded by a large chunk of residential. If an area has, for instance, a few cafes, and the other regular daily use shops like a bakery, hairdressers, estate agents, supermarket, bottle shop, etc. these can be local hubs for residents of the area who like to shop and eat locally. Many estate agents will advertise …

Creative Commercial Property Contracts

Residential property investors understand conditional contracts. To sign a contract subject to a pest inspection, for instance, is fairly common practice around Australia. In fact, conditional contracts are a great way to lock in a deal but give you an out based on certain conditions. Sometimes these conditions are based on your personal conditions as they purchaser; sometimes they are to do with the property itself. Common property based conditions are having the purchase being subject to a pest inspection, or a building inspection, etc., …

How To Get Vendors Out Of Fantasy Land

I was looking at a deal recently where the numbers just didn’t add up. For me it was time to move on and keep looking. However, there was good upside on this property and could still be worth looking at depending on whether you could get the vendor’s head out of the clouds and back into reality. The problem is that those who do not have a good understanding of commercial property will think that they bought the property for price x and they automatically …

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 …

What Drunk BBQ Braggers Don’t Tell You (Nor Does The Media)

I was at a dinner party BBQ recently. I was just there to relax and have fun with my friends, but I couldn’t help listening in to a conversation with this guy I’d never met before about his residential property portfolio. I guess there’s always one at every party right… He’s had a few too many drinks, he’s talking too loud, and he’s bragging about how much money he makes… A self-proclaimed expert in all things government policy. He was quoting the former treasurer who …