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OF COURSE, everyone’s expectations will differ as to how your property should be managed. But over the years, my clients have provided a few clues. And these have been rather helpful in creating a simple checklist.
And so once you’ve finally acquired a suitable Commercial property, any ongoing Management will need to make sure that … [Read more…]
AN OFTEN contentious issue in Retail tenancies: Who has the responsibility for maintenance and repair to the leased premises?
Is it the landlord? Or, as many landlords believe … the tenant?
Disputes relating to maintenance and repairs are the third most common type of dispute referred to the Small Business Commission in the past twelve months — highlighting the importance of landlord’s awareness of their obligations. [Read more…]
YOU’RE EXCITED … having just purchased a Commercial property investment. But what happens from here on, effectively determines just how profitable your acquisition will be.
Therefore, choose wisely when selecting your property managers — to ensure they share the same aspirations as you do. [Read more…]
LEAVING aside things like projected cash flows, depreciation and taxation issues for moment … let’s look at some of the key factors that determine whether or not the property itself will stack up.
What follows is basically a checklist of the various aspects to investigate, when you start looking to purchase a Commercial investment property.
And, while this is not intended to be an exhaustive list, it should give you some insight into the depth of analysis you’ll need to undertake … as part of your due diligence process. [Read more…]
There is no doubt, you can certainly accelerate your overall return from Commercial property, by gearing up with a loan.
Even so, you should FIRST make sure that you can say “Yes” to each of the following questions. [Read more…]
AS YOU WILL appreciate, being able to sleep at night is one of the key objectives for any Commercial property investor.
And that’s what many property investors refer to as staying below your “Threshold of Insomnia”.
There can be several things that might cause you to lose sleep. One is over-borrowing; and the others are making a poor assessment of the market and the property itself. [Read more…]
KEEP IN mind that Commercial property investing is all about the deal, the terms and the return on investment.
Below are a few key tips intended to give you a hand with your property investing. [Read more…]
Yes, I know it is rather confusing. But this is merely an acronym for the … National Australian Built Environment Rating System.
Effectively, it benchmarks existing buildings against one another — where ZERO means a “Poor” rating … and FIVE indicates an “Excellent” green-rated building.
This rating system currently covers Offices, Homes, Hotels and Retail Centres — although the actual criteria do vary between the different types of buildings.
For Offices, they include aspects like … Energy, Water, Waste and the Indoor Environment. Whereas for Hotels, Retail Centres and Homes … it is only Energy and Water efficiency, which is rated.
Since November 2010, owners of Commercial Offices have been required to disclose their building’s NABERS rating — whenever they sell (or lease) any space larger than 2,000 square metres.
Their NABERS rating needs to be displayed in all advertisements; and appropriate documentation is to be available upon request.
The common exemptions would include …
Bottom Line: The penalties for non-compliance can be up to $110,000 for the first day; and then $11,000 for each further day of non-compliance.
However, it does provide you with a great opportunity to capture a strategic advantage … if your building holds the highest possible rating — given its age and condition.
Therefore, this system is important to ensure your property manager is fully ‘up to speed’ on all the various requirements. And if you would like to study any of this in more detail, simply go to the government’s website.
