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John

John

Some investors say that investing in commercial real estate is not for the faint of heart. The reason is that, while income and equity potential is much larger than those in residential properties, the risks are also greater. “There are a lot more pros when it comes to commercial properties,” she says. “This includes stronger returns, which is a combination of capital gain and income, and stability of income because your tenants sign longer leases.” Wrigley also says that investing in commercial real estate has greater tax benefits. “We live in a highly taxed country, and as an investor I look for ventures that have great tax benefits. Commercial properties provide just that with generous benefits and substantial depreciation allowances.” However, Wrigley admits investing in commercial real estate has some drawbacks. “One of the disadvantages… is that it can take months and months – and in some economic climates, years – to sell or lease, unlike our residential friend that can be snapped up within days or weeks of being listed for sale,” she says. Wrigley lists the four people who play important roles in helping investors build a successful commercial property portfolio. Solicitor: They not only recognise the numbers but, more importantly, help in understanding any leases or legal issues. Accountant: They crunch the numbers and help with the appropriate purchasing entity and tax planning. Financial advisor: They help set financial goals and keep investors focused on those goals. Finance broker: They are essential in finding the best funding opportunity for each purchase. Wrigley advises to “never go directly to a banking institution as they limit your financial choices.” Practical tips for commercial real estate investors Practice due diligence As with any type of investment, Wrigley emphasises the importance of learning about the industry before dashing in head-on. Buy in a good location Location can often spell the difference between yield and loss in property investments. Wrigley’s advice is to “look into high growth areas with good exposure and potential to add value.” Pay it off “Paying down the debt against the building should be factored into your financial strategy,” Wrigley says. “The faster you pay it off, the more money goes in your pocket and the more equity you have in case you want to buy more in the future.” Read full article at: x Why invest in commercial property? Is 2020 really the best time to build a successful commercial property portfolio? www.yourinvestmentpropertymag.com.au
0 Reply 3 Views 20Hr ago
Ronie

Ronie

Nearly all of the time, it is much better to buy an established property rather than a new one. Reasons behind are: 1. NEW HOMES AND APARTMENTS ARE A DIME A DOZEN One of the biggest misconceptions of real estate is that it’s about desire. Certain properties attract more buyers because they’re more attractive.Sure, attractive properties are going to perform well, but only if they are in short supply in a desired location. 2. PEOPLE FALL IN LOVE WITH PERIOD HOMES Established properties consistently do well over time and period homes are always in high demand. Take a look at some of the ‘contemporary’ apartments built in the 1990s, which seemed very cutting edge at the time, but look old-fashioned now. And the more homes that are knocked down to make way for modern homes or apartments, the more in demand these remaining period properties become. Then there is the fact that many period homes are better built and have more generous proportions. 3. IT’S ABOUT THE LAND TO ASSETT RATIO Another key point to remember is that property is about land value or more specifically the land to asset ratio. New homes in new estates tend to be located a long way from the CBD, which is why they are so cheap. The land is worth far, far less. Established homes, however, are concentrated in the inner-city suburbs, where land is highly valuable. Continue reading at: x Should you buy old or new properties? It’s a question that many property investors ask me: should I buy a new property or an established one? It’s obviously on the minds of lots of investors so it’s time we revisited this issue in a... propertyupdate.com.au
0 Reply 7 Views 6D ago
InvestAus

InvestAus

The first being modest price falls, and the second: a slow pick-up in property sales. “The most likely outlook for property is for prices to fall modestly in some areas and be broadly steady in others, combined with a slow increase in transactions from weak levels,” Mr Wiltshire said. “The key factor supporting prices so far is that few people have been forced to sell their homes due to losing their jobs or having their incomes cut. This has been enabled by the government’s financial support packages assisting households whose income has fallen, in combination with banks allowing people in financial difficulties to defer mortgage repayments.  “In Western Australia, almost all social distancing restrictions will be removed on 18 July. The mining sector is strong due to robust demand from China. Perth’s rental market has held up well, with the rental vacancy rate back to where it was pre-pandemic and well below the level a year ago. WA’s tourism industry is the least reliant of all the states on interstate and international visitors, meaning border closures should have a smaller impact on the economy,” Mr Wiltshire said. “Canberra’s high proportion of public sector employment should mean job losses are limited. In Adelaide, the jobs market has held up over the past few months, and South Australia is also less reliant on international tourists than other states.  “Inner-city Sydney and inner-city Melbourne look to be most at risk of price falls due to having a large proportion of renters and also due to significant job losses, particularly in hospitality. These inner-city areas are also where a large number of international students typically live. But with borders closed and universities teaching online, international student numbers have fallen substantially. Source: x How the rest of 2020 will play out for property There are two likely scenarios to play out for the remaining six months of the year, according to Domain research. www.smartpropertyinvestment.com.au
0 Reply 6 Views 6D ago
InvestAus

InvestAus

As the new financial year approaches, Bradley Beer, CEO of BMT Tax Depreciation, has shared how the benefits will provide a welcome financial boost for many his tax time. Owners of income-producing properties can often claim sizeable tax deductions for the wear and tear that occurs as a building gets older and items within it wear out. These deductions are known as property depreciation, Mr Beer explained. “BMT has seen growth in orders from savvy property investors who will claim their schedule fee straight away in this year’s tax return,” he noted. “A property can hold significant hidden tax deductions that only an expert can find. For instance, you may be able to claim on renovations, even those completed by previous owners. This could result in thousands of additional dollars back at tax time,” Mr Beer said. Furthermore, Mr Beer noted that investors of strata title property should also remember to claim deductions held in common areas. “Apartment owners can claim on common property assets like lifts, ventilation fans, carpet, intercom system assets and air conditioning. Source:x Depreciation deductions ‘never needed more’ fo... Australia’s largest provider of tax depreciation schedules has flagged how lucrative tax benefits will provide a financial boost for landlords who have been struggling amid the coronavirus pandemic. www.smartpropertyinvestment.com.au
0 Reply 9 Views 6D ago
MD Emren

MD Emren

Quite simply, a real estate agent is selling the property, but at the same time they’re also gathering intel to pass on to their vendor client. And that information, especially when the property is being sold by auction, is golden and should be kept mostly to yourself. Here are the 3 things you should never say to a real estate agent: 1. Budget Smart investors have a strict budget – and they stick to it. Now that number should only be known to them and their property team. The secret is to give a more general answer to the budget question such as: “I’m looking for properties around this price.” 2. TimingIn the same vein, an agent will attempt to know whether you need to find a property quickly, perhaps because you’re already sold your own, and may use this information to speed up proceedings. It’s always better to take your time and consider the pros and cons, rather than make a hasty decision to solve a short-term problem. 3. Price feedbackThe market will always dictate property price and it’s usually emotion that drives that price up. That’s why you should never suggest price specifics with an agent, because your numbers might be much higher than the vendor was actually prepared to accept. And it’s doesn’t take Einstein to work out that an agent will use that information in negotiations. Continue reading at: x 4 things you should never say to a real estate age... It can be an exciting time when buying real estate, can't it?  As I've said before, though, successful property investment should be less emotional than... propertyupdate.com.au
0 Reply 16 Views 8D ago
Liam

Liam

Property investors are riddled with emotional barriers including fear, indecisiveness and procrastination which can lead to poor decision-making. A fear of missing out, over-capitalising, pursuing the ‘perfect property’, blurring your purchase intention and/or objectives, and renovating to your personal taste are some faults which can lead to financial downfall in the form of untenanted periods, low rental income, or limited capital gain. Here are some emotional blunders and how to avoid them: 1. Fear of missing out One of the most common emotional mistakes made by investors is listening to the media and thinking that you need to get into the property market quickly, according to Christine Williams, property strategist from Smarter Property Investing.   To overcome the fear of missing out, or a sense of impatience,investors should know that there will always be another opportunity no matter what time of the cycle you buy. 2. Overpaying Paying too much for a property is a frequent mistake made by property investors who are swayed by sentiment and an overarching sense of optimism.Evaluate your budget and your offer strategy and be prepared to walk away if the vendor doesn’t accept your offer. 3. Being too honest You may feel obliged to disclose as much information as possible to everyone involved in your property search. However, this can work against you They may tell you that there are other interested buyers who are willing to pay more to create a false sense of competition. An agent’s objective is to secure the highest possible price for the seller so be mindful of people’s motives when discussing your purchase intentions. 4. The great Australian dream mindset Investors generally have the mindset of buying rather than renting in order to chase the great Australian dream. Williams says that many single parents believe they need to provide a family home in an area that is close to a desirable public school, but she maintains that renting can be a better wealth creation strategy. 5. Renovating to your personal tastes Some investors renovate with their personal tastes and preferences in mind, rather than the target tenant. This is a frequent problem for competitors on The Block who featured some daring bathroom designs that potentially ruled out a larger pool of prospective buyers. Continue reading at: x Emotional mistakes every property investor should ... We all know that we shouldn't allow our emotions to rule when making property decisions. propertyupdate.com.au
0 Reply 15 Views 9D ago
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