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hey fellas!
i am starting to think seriously about investing in a commercial property (unspecialised) and was wondering if anyone else has done this in the past or just recently. what are the advantages and disadvantages of this type of investing?
thanks.
Franky Young
Do a search. There is plenty in the archives.
MJK
Franky,
The advantage and disadvantage of commercial property is listed in “How Investing in Commercial Property Really Works” by Martin Roth + Chris Lang. It is only $30 (priceless). There are so much info in there. Buy it, read it then you know what I meant.
Warm Regards
ChanDollars
[Keep going, you’re on your way to financial freedom]Chan, Dymocks doesn’t stock it so where did you get your copy ?
Pisces
Franky,
What a commercial property is used for can effect the rate of depreciation:
Some buildings qualify to be depreciated at 4% instead of 2.5%. Commercial buildings constructed after 26th February, 1992 will qualify for the 4% depreciation rate if they are “used mainly for Industrial activities or amenities or offices for workers and supervisors involved in industrial activities.” Otherwise only 2.5% applies. Industrial activities are:
1) The manufacturing of items or storage of manufactured items.
2) Processing of primary products
3) Printing, lithographing and engraving.
4) Preparation of foodstuffs in a factory or brewery.
5) Activities associated with the above such as packaging and cleaning.
For other Commercial buildings started before 26th February, 1992 and after 16th September, 1987 the
depreciation rate is 2.5%. On Commercial buildings started before 16th September 1987 and after 21st August, 1984 depreciation of 4% is allowed. Prior to 21st August, 1984 only 2.5% depreciation is permitted. No depreciation is permitted on Commercial buildings constructed before 22nd August, 1979.
Buildings constructed after 26th February, 1992 can be depreciated at 4% if they are used as a motel, hotel, guesthouse or short term traveller accommodation providing there is at least 10 bedrooms or apartments.
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