Thoughtful and well-played negotiation is critical for buyers and sellers of real estate.
In this two-part series I will explain the intricacies of negotiation because getting this aspect of your investment journey right can pay a number of dividends, whilst getting it wrong can have a costly, long-term impact on your property portfolio.
And when it comes to property investment, knowing how to successfully parley with a third party can save you thousands of dollars.
If you can apply your skills to knock say $10 -15,000 off a property’s asking price, you do not only save that $15,000 upfront, but…
Does Commercial Property make a good investment for me?
In many cases, I believe that the answer may be YES. Perhaps a better question to ask may be “When is the right time to invest in Commercial Property?”
You see there are many different aspects and considerations you need to understand when you consider investing in Commercial property over a standard Residential property.
Perhaps the biggest difference is the contrast in Capital Growth.
This is very important to understand, as it is capital growth increases your wealth faster than anything else will.
Here are my thoughts around Commercial Property and…
Leasing out commercial premises can be a challenge in a slower market, as can attracting the right tenant.
That’s where leasing incentives come into play and can make all the difference.
Leasing incentives came about late last decade when the wind went out of the commercial market’s sails.
Director of Knight Frank Sydney Shane Bisset explains, “They first surfaced about 10 to 15 years ago with the objective of trying to maintain the book value or capital value of commercial properties in a declining market.”
Since then, these inducements have become part and parcel of non-residential tenancies in many instances…
It can seem like commercial landlords need to speak a whole other language but the lingo isn’t that hard to translate.
Getting a commercial lease agreement right from the beginning is crucial because rent returns have the potential to make or break the success of commercial property investment and lease terms run for as long as 20 years in some instances.
So what exactly is involved when it comes to reviewing a commercial tenancy and how can landlords ensure they protect themselves and their assets while keeping their tenants happy?
Small mistakes can often snowball into larger problems when it comes to property transactions.
Sometimes as a property investor you can make a mistake, pay the price and then just move on. Other times the problem hangs around to haunt you.
A case in point is an investor made was to neglect to ask for a list of exclusions that weren’t included in the sale, only to find out following settlement that more than $5000 had to be spent on a number of matters to bring the property up to scratch to keep the tenant happy.
Readers will recall that…
Moving on from last month where we looked at subdividing and then selling the vacant land, this month I’m going to look at subdividing and then building on the vacant land.
Many people may be surprised at the tax implications of building in their own backyard.
Let’s start with the worst case scenario.
You’ve lived in your own home on a large block since 1995.
You now see a money making opportunity by subdividing your large block…
Some tenants are feeling misled by landlords who are trying to maximise their profit by hiring a real estate agent only to advertise their property, preferring to self manage from there on.
As a landlord, there’s nothing wrong with trying to maximise your profit depending of course on how you do it. You may feel that you can manage the property yourself and some landlords are very good at this.
However, there can be drawbacks that are overlooked when thinking of saving money this way.
Being a landlord myself, I find myself asking questions such as;
How can I save…
The concept of your ‘main’ or ‘principal’ residence is an important one due to its significant influence on your future financial situation.
When it comes time to sell your home, it is one of the few windfalls you can receive (assuming you make a profit when you sell) that is not subject to tax.
Your main residence is exempt from tax on any capital gains provided it meets a few criteria.
For most people, figuring out what is your main residence is pretty straightforward.
What do banks look for when they request a valuation?
In a recent Real Estate Talk show Jonathan Millar from JDMA Valuers, mentioned that there are eight risk factors included in valuations to help banks understand their risks, so in this week’s show I asked Jonathan to explain these.
Jonathan: There are eight risk ratings that banks use to make their lending decision, and basically, they’re rate on a scale between one to five.
One is equal to a low risk rating and obviously five is equivalent to a high risk rating.
1. Location & neighbourhood
As a means of transacting property, I think it is safe to say that the traditionally competitive environment of an auction is not always the preferred option for buyers and sellers.
Nevertheless, it is difficult to deny that auctions can be an effective tool for buying and selling real estate, particularly when national auction clearance rates hit robust levels on a consistent basis, as they have done in recent months.
Savvy buyers and sellers will know to keep their auction techniques well-honed.
The following sets out my top tips for buyers and sellers to maximise their results at auctions.