What Fitout contribution and rent free period have you agreed?
This hasn’t been discussed. I am a 100% newbie to commerical leasing. Is the rent free period for you to fit out the property before you take it over for business?
Scott No Mates wrote:
why aren’t you negotiating a gross lease?
Again apologies for my ignorance but I don’t even know what a gross lease is. Is this where you negotiate a total lease including all of the required fitout expenses?
Scott No Mates wrote:
Why aren’t base services already in the building?
Scott No Mates wrote:
Why are you paying the initial telco install to the first point?
Base services are connected I just have to confirm with the phone.
Scott No Mates wrote:
How does this deal stack up against other property in the area?
Hi Michael,
I think you were thinking I was the landlord but we are in fact the tenant in this case. So what you are saying is that we should be paying for most of this stuff right?
I will be there. I have done it twice before. I have been on Brendan's mentoring program for two years. If you've never been to the seminar you will have a great time and learn a lot. Especially specific strategies to make more money from business.
I am actually going with two friends and have a spare ticket because a third friend can't make it. If you need a ticket I am going to sell it at a discount price please let me know.
Enlightened Millionaire, I would be very cautious of doing no money down deals in today’s market (excluding WA where it is still booming).
The idea behind a wrap is that after a certian amount of time the purchaser will have enough equity built into the property to refinance and pay you out.
If property prices are decreasing equity is negative and the wrap method becomes very dangerous because you have a purchaser that is not able to access any equity in the home. This does not create a win-win situation.
With interest rates on the rise this also increase the risk of strategies such as wrapping. That is not saying it can’t be done however you need to be more careful about such strategies than in an increasing market.
My bad! I was skimming instead of reading as usual and now I am in trouble!
You will have to excuse me as I am not aware of what an imputation fund is, how do they work and what do they involve? Also how do they remain income producing as well as tax effective as the two don’t often go hand in hand.
What sort of return do you want from your money and what are you looking to get out of it from investing?
Are you after a passive return or do you want to work to make the most from your money?
No point in looking for low single digit returns when you can get at least 6.4% by just sticking it in a bank account (see http://abetterdeal.com.au/).