@Azalia – you say that the tenant has exercised their option. What is the rent review at option? Market? CPI? Fixed?

@Cjaysa says it’s low, @fredwisely says it’s too high. It requires more analysis especially regarding shifting of risk from vendor to purchaser.

Alternatively when companies are asset rich and cash poor, they will sell their assets and lease them back – this is a strategy by their advisors, accountant or CFO to make them look more profitable. Freeing up the capital to fund the expansion of the business or return to shareholders.

Many accountants underestimate the value of owning their…[Read more]

Alternatively when companies are asset rich and cash poor, they will sell their assets and lease them back – this is a strategy by their advisors, accountant or CFO to make them look more profitable. Freeing up the capital to fund the expansion of the business or return to shareholders.

Many accountants underestimate the value of owning their…[Read more]

@gshaheen @fxdaemon – direct comparison is not used for commercial property (primarily used in residential). I would used IRR & NPV as my primary valuation methodology and the summation method for my secondary review.

Being tenanted doesn’t guarantee a higher valuation but provides the valuer a basis for deeper questioning – they then need to…[Read more]

Return is related to risk (on many levels). Some are: finding a replacement tenant (time, quality etc), competition, functional obsolescence, zoning pressure.

I recently completed a lease renewal for a regional commercial property where the rent dropped 10% – so all is not rosy in this market. The lessor was more concerned with continuity of the…[Read more]

FX – generally to attract a blue chip (or quality tenant) you need to have a decent asset – that does not necessarily mean expensive, large or A grade.

These tenants looking for well located, well maintained, good presentation etc. I have one client who has had a publicly listed building supplier for the last 20 years and more recently in another…[Read more]

I’m surprised you didn’t jump at the chance.

As them to make a small deposit into your account so that your loan application can be sped up. Have them top up a refillable visa card.

Congrats!! Are you going to develop it as a turnkey project or going to flog it with the DA in place?

How about considering getting a depreciation schedule? Create a non-cash expense.

The answer to your question is yes, no and maybe.

If the insurance claim is for loss of rent, then the agent would be entitled to charge their % + gst, if it were for damage then they may only get whatever has been agreed in the management agreement for other charges (eg management of make good etc).

Not sure what you are asking in the third…[Read more]

By the sounds of it, the property is pre-Ordinance 70 & BCA. At the time of construction and issuing of the occupancy certificate (council), the building would have complied with the then current codes eg: height of buildings act and fire safety requirements were minimal.

If you were to proceed, you would need to ensure that basic requirements…[Read more]

A developer, selling their own properties (100% ownership), does not require a real estate licence. If they are in a JV, then they are selling someone else’s property.

Unless they build the properties, they don’t need a builders licence either.

Richard’s been around for eons, so shameless self promotion goes with the gig. If he were a first poster, it’d be a different story.

The answer is how long is a piece of string. You mention 8 storeys but what does that really mean? Is that a fsr of 8:1? or you can build up to 8 storeys but only cover 1/10th of the site? The results are totally different? How much open space is required? How does the building envelope fit the site? Your group may be best served by contacting a…[Read more]

I have given up on the vitamin VB, makes my head spin.

Issue a notice under the security of payments act through a debt collector experienced in this area.

You’ve lost me on that one Richard, what do you mean by coded/uncoded security?

I say he is having you on. You have no relationship between you and the builder who had the plans prepared. If the builder is to sue anyone for non-payment it would have been the previous owner/developer who commissioned the design – more fool him for releasing the plans prior to payment (without a massive ‘DRAFT – NOT FOR CONSTRUCTION’ watermark.…[Read more]

Redwood wrote:

Cons – 

Safety – My house was a double story – I can tell you I did not use scaffolding, just a ladder an paint can

Painters are one of the few trades who can work off a ladder at heights.