It ‘s always fun when you can frustrate a developer. Remember, you don’t owe him anything.

why is your $million property returning only 2.4%? Speak to your property manager to get a rent increase. Does it need some minor maintainence to achieve the rent review?

If I were a millionaire, I’d be much poorer than I am now!

hmmm… There is no constituted bc on the proposed development as there is no building so there cannot be a registered strata plan requiring an oc to be formed.

The developer has purchased the unit not the bc.

Nothing new or earth shattering, just strategic.

Once the project is completely sold they will possibly sell the one unit as they have made a wafty promise which they cannot fulfil once the unit is sold. Even if the developer passes the unit to the future bc what obligations will lie with bc for the unit? How will income/losses be distributed? Etc

pm me if you want to know more.

If the premises are not used for commercial purposes but for another use, then the rights will lapse. If you find a tenant who wants storage etc (if this is the desired use) then the use rights will continue.

Having a separate entry will save you alot of headaches (and then the two can be leased separately).

Look at the http://www.commercialrealestate.com.au or http://www.realcommercial.com.au websites – they will give you an idea of what is vacant in the area. Likewise, speak to some of the local agents (as if you were looking for space).

Which city is the property located?

Depends upon what type of job you are after – there are plenty of well paying jobs up in the mines, golden sandy beaches, serenity etc but hudreds of KM from any major town or city.

OK a couple of points to note: if you start using the property for another purpose eg only residential, then you will lose the existing use rights – which one is going to give you better rent?

If you are going to occupy part of the building consider separating the entry to your domicile from the rest of the premises – as a tenant, how would you feel/what would your insurer say etc if you gave unfettered access to your property to another person who was not your employee etc?

Of most concern is the ‘existing use rights’ – when did the previous tenant vacate? This will expire after about 3 years.

Rent should be on par for similar premises but unless there is a low vacancy rate/high demand for warehouses then you should only consider the current use for holding income & the highest & best use for the long term.

So am I right in my understanding that, in a nutshell – the trust is just a way of separating some assets from others & doesn’t provide any protection if the owner/trustee of that asset is sued. The trust can still lose the asset. If I have 3 Properties in the trust, they are all at risk but if they were in independent trusts they would be quarantined.