All Topics / Help Needed! / how to cpi rent review,after 3 yrs no adjustment

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  • Profile photo of buds14buds14
    Participant
    @buds14
    Join Date: 2019
    Post Count: 1
    December 28, 2019 - 4:34 pm

    I have purchased a commercial property said to be annual CPI (all groups SA)  reviewed

    but the Lease has the first 3 yrs JULY 2016-2019 as a no review/holiday  period

    First Review 1 July 2019, should have been  actioned by Vendor’s Management Agent  but was not,despite promise of AGENT to have this done before Settlement

    Do I use CPI from I/7/16 to 1/7/19  i.e 3 yrs of CPI

    or am I to use only the 18/19 yr

    Can you advise

    thanks

     

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 30, 2019 - 8:48 am

    Depends on the wording in the lease.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    January 9, 2020 - 11:29 pm

    After reading the rent review clause,  go to abs.gov.au and get the CPI table download. This is an Excel file.

    Use the all groups Adelaide

     

    June 2019 ÷ June 2016 × current rent.

    113.7 / 107.5 = 1.0576744186 x rent

     

    You will also need to do a back rent calculation for the period after the rent review to current (even if this is prior to your ownership, it is in arrears).

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