Always better if you are not a 'motivated seller'.Good for you on being able to hold.Best wishes

Tye mate,I think I know why the other sales fell over. 7% cap rate for a three lease in Wodonga is way off the mark.Maybe 8.5% – 9%+ would see some interest in your property. There is also the three year 'leaseback' scenario that would concern many buyers. I guess you guys could easily move on and/or build another factory for yourselves at the end…[Read more]

G’day Michael,  There are certainly some areas with a lot of unsold and unleased stock. This applies to various areas of Sydney and Brisbane; I am not as familiar with Melbourne.  I would certainly not be buying a commercial property at the moment unless it came with a long lease (5 – 10 years), has a 6 month bank guarantee (bond) in place and I…[Read more]

Hi Michael,My research and also being in the market tells me the following;   With the economy slowing the demand for commercial and industrial space is easing. Many companies are putting expansion plans on hold and staying where they area. A lot of completed speculative development is therefore sitting around empty causing an increase in v…[Read more]

You are in the wrong section.This post is on commercial property.

Sorry about the late reply Heidi, I have been traveling for a few days. I guess the first step is to identify and maybe separate your business needs and requirements from your property investment objectives.   Is the property a good investment Does it suit your business requirements – having a reliable tenant (yourself) is a plus however, the pr…[Read more]

Hi, yes got your e-mail and sent a reply however it bounced back to me twice – not sure why?Do you have another e-mail address?

Do you mind sending me an e-mail chrisw@prospergroup.com.au and I will respond with suggested reading.I would prefer to refer books privately. Thanks

You definitely need a buffer when investing in commercial property. You need to be able to ride through potential vacancy periods and/or capital costs (especially with older properties).I am sure that most commercial investors will agree that 'right now' I am seeing some of the best buying opportunities for several years. I expect this to continue…[Read more]

It seems that rates are on the way down. A 0.5% – 0.75% rate cut next month is not out of the question. I can't see rates moving up for at least another 6 months. Unless you absolutely need the certainty right now, I would stay variable for a couple of months more. Most lenders allow you to fix at any time. (some charge a small fee).

Stu_Macca

It may be the conservative in me, (and I don’t buy in mining towns), however, when house prices there reached $350k I thought it was overpriced.

Be very careful when riding a bubble (and prices in Moranbah) are just that. The intrinsic value is not what you paid for it.

The cash flow is great but what is your medium term plan and exit…[Read more]

Sorry, I was asking Wealth4Life how they get paid from their arrangements with property developers.i.e. does the developer pay them or do they act on behalf of the purchaser (therefore the purchaser would pay them for the service)Just curious to know?

How do you get paid?

By the developer / builder or purchaser.

A buyers agent represents the purchaser to acheive the lowest possible price for them.

Just to clarify, who will you be representing?

Hi Katrin,

Feel free to give me a call to discuss how we can help you.

Please also view our website.

Hi Damian,Feel free to give me a call to discuss.

You’ve pretty much summed it up whiteknightoz  On a $300k loan, at 0.80%, repayments will reduce by $200 per monthThe banks will reclaim some of their lost margin (i.e. 0.20%) previously lost in higher funding costs and therefore restore confidence. Interest rates will fall further and the banks margins will continue to improve. Median house re…[Read more]

They are good additional points that you raise.

If you were going to spend money on a fit-out you would certainly want to be confident that your tenant was going to be there for the long term and/or you retained the ownership of the fit-out, depreciated it and could even leave the works in place for the next tenant to use. As such the nature of…[Read more]

Your post doesn’t make a lot of sense.

You make it seem like there is a conspiracy theory out there that only you know about.

I would like to see more fact behind these posts. A little information is dangerous.

There is a lot of money being made whilst you continue to wait for property prices to fall 50%.

As far not being the right time to invest – I disagree.

Injections of capital into banks and other corporations will help the current economic turmoil. (Which is currently occurring) and right now, the greatest investor in the history of the world has spent US$15 billion on investment within the last week and is set to spend another US$25 b…[Read more]

“Say you offer to pay $50k in fit-out costs for an incoming tenant or existing one, and the tenant agrees to pay an increased rent of $25sqm x 250sqm (of floor space) = $6250 per year. At a capitalisation rate of 8% the increase in value would be $6250 ÷ 8% = $78,125”.

Hi Gary,

The $28k is the difference between what you spent on the fit out…[Read more]