Hi Lara,Refer to 2nd post (Sydney strata office properties).  http://www.prospergroup.com.au/blog This is an example of the type of information / research that you need to obtain and apply to your Melbourne office scenario.Suppy and demand!

Good for your guys, for taking the plunge and investing.I think what some of the forum people are alluding to with their comments are that one should focus more on the underlying asset, the quality of that asset and how it will likely perform in the future. Often some investment groups highlight the tax benefits and 'home gearing & debt reduction…[Read more]

The objective of a commercial renovation or improvement is similar to residential property, i.e. the property should be brought up to an appropriate standard so it appeals to prospective commercial tenants and/or prospective purchasers and one should not over capitalize the property.

The requirements of commercial tenants will vary depending on…[Read more]

The objective of a commercial renovation or improvement is similar to residential property, i.e. the property should be brought up to an appropriate standard so it appeals to prospective commercial tenants and/or prospective purchasers and one should not over capitalize the property.  

The requirements of commercial tenants will vary depending…[Read more]

Deposit for commercial is usually 25% – 30%. Units of 3 – 4+ are usually considered a commercial lend.However, 80% LVR is possible for strong applicants. Also, strong applicants may finance up to 5 – 6 units as residential loans at residential rates. Hope that helps.

Dear Sati, Whilst the situation is not good you can learn valuable things from this experience that will likely put you in good stead to make better decisions in the future. All good investors have started somewhere and also made mistakes.   This is obviously very damaging to your cash flow, I assume that selling the IP is not an option for you…[Read more]

Not sure if you use the PIA software (property investment analysis)  – from somersoft.com.au.This will provide you with a cash flow analysis and various returns (IRR and NPV) which factors in the cash flow and assumed capital growth of the property.You may find this useful in creating what-if scenarios and models.

Information was sourced from various places.Financial Review  – (on-line subscription)ABS – Information is freeMortgage & Finance Monthly Brief (subscription)RBA website – FreeVarious finance industry daily e-updates (subscription)Industry seminars and updates Can be dry reading however, it keeps your finger on the pulse. 

With all due respect, I personally would not consider consulting an industry superfund advisor for anything else other than advice on an industry super fund.They may be excellent on advising on the respective C-Bus funds etc however, they are not financial experts and also are generally not well rounded in property and finance.I have been a fin…[Read more]

Interest rates and the economy – property prices Interest rates have been left on hold since March 2008. The immediate inflation figures and outlook is the leading indicator for monetary policy or the regulation of interest rates by the RBA. The cash rate is currently 7.25%. Economic growth (which drives jobs and demand) is expected to fall fr…[Read more]

Having also purchased mortgagee properties, I think you will find that your lawyer is correct (and you would hope so!).The bank will not negotiate with yourself and certainly not at a loss. They will have to go through their mortgagee in possesion process first. Also, if the bank has not moved in on your friend (yet), they certainly will after you…[Read more]

Interest rates and the economy – property prices Interest rates have been left on hold since March. The immediate inflation outlook is the leading indicator for monetary policy or the regulation of interest rates. The cash rate is currently 7.25%. Economic growth (which drives jobs and demand) is expected to fall from 3.25% to 2.75%. Unemployment i…[Read more]

G'day Neil,I think that if you can cover that list comprehensively you are doing well. I dare say that the attendees may tell you what they want to hear about from time to time. People generally like to hear about case studies and examples – i.e. a presentation on funding a development should include working through a real life feasibility…[Read more]

G'day Kate,Should your offer be accepted and you need some amo to convince your husband, you could consider doing a CMA (comparable market analysis) of the property. I.e. What are recent sales in the street and within 200m of the subject property like? A CMA can be done using RPdata or Reisdex (as a casual user if you do not subscribe).If you w…[Read more]

G'day Daniel,Have you considered any of the following options?1.      Using a Line of Credit to fund the cashflow shortfall – would need to invest in capital growth areas for this to be          viable.2.      Using a Cashflow Loan – reduced interest during the first few years. 3.      Commercial Property – Higher deposit required however, still…[Read more]

Hi There,The Australian average is approx. 20% of gross income spent on loan repayments – or approx 27% of net income, depending on your MTR. Approximately 8% of folk are at or over 50% of their gross income. So if they earn $60k per annum gross, then their loan repayments are approx. $30,000 p.a. That would make the repayments at about 66% of…[Read more]

Where are you looking to develope – there might be some nice people out there that will share specific costs with you for a given area.Sydney Buyers Agents

Hi Dexter,We act for investors all over Sydney (and NSW / QLD for that matter).We are currently negotiating on a property in Campbelltown for a client.Please feel free to contact me privately if you wish.  

Hi Catsgrave A quick scenario for you ……….. An investment purchase             Capital Costs                                          Cash flow    Purchase price    $250,000            I/O mthly loan payments             $2,100    Deposit (5%)       $12,500              Mthly rental income                    $1,041       Loan                   [Read more]

Hi Nathan,I have a couple of Sydney based solicitors that I have been working with for a few years. They do conveyancing work for me all over NSW.Although, not in Wollongong, I am sure they can help.Please feel free to e-mail me for details.