Ok I'm green when it comes to investing and looking at all types of property. Currently looking at either a large block that I can subdivide or commercial building with high positive cash flow.
looking at structure types too to keep things away from my personal belongings.
are there major things to look out for with commercial??
It seems the easier way to go then subdividing, I just don't know anyone that's ever brought commercial.
You have to be careful with leases with commercial.
Had a friend who purchased a property with a nice lease in place. A few weeks after settlement the company leasing was placed into administration. It turns out they were connected to the company selling the property. ie the company owner.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yep, that wouldn't be so good. Ill be looking right into it before going ahead that's for sure
Keep in mind with commercial that often the rent is paid less often than residential. eg Quarterly. So if your tenant was a company in financial distress, you might not see the warning signs as quickly as you'd like.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I am a huge fan of commercial, but only certain types.
AND you need to be able to wear periods without rent, vacancies can be longer in a lot of commercial types.
Rent can be greatly influenced by where we are in the economic cycle also.
Structures will depend on the state and your goals.
Company are not usually good for holding property in.
Trusts are great, discretionary trusts in NSW are not because of no land tax free thresholds.
have fun
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
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