Yes this is fairly typical, the agent provides a service (review of rents, lease negotiation, lease preparation etc). Alternatively, the agent could just let the property carry on under the holdover provisions but the tenant could give notice at any stage leaving you open to vacancies etc. Which would you prefer?

Commercial, industrial and retail (some mixed use, if I must).

I generally lean towards 25%+ on an NPV as well as having used a development model to back up my assumptions.

You will need to make certain of the zoning and consent conditions of the factory & shop so you know who else can lease them eg general industrial zoning or is it a non-conforming use?Speak to one of the other agents in the area (who isn't dealing with this property). How easy do they say it can be leased and what is the market rate etc?

Legally, a real estate agent cannot work on your behalf without an agency agreement. That is, they have no right to payment as they don't have an agreement with you or have accepted your instructions.You should check out whether the newsagent holds a licence as an re agent as unless they are licensed and run an RE trust fund they would be unable…[Read more]

If they started in the bathroom, it is likely that there is a water source which termites need. This should have been obvious to a building inspector (but not necessarily to a pest inspector) – hence the need to have both inspections. If the pest inspector was not informed of the building inspection (if it showed a leak/rising damp etc) then it…[Read more]

Have a look through the archives, you are bound to find a couple of gems

You may need to ensure that there is no exclusivity clause that you would be breaching with your agent – you may be up for the commission even though you did all of the work.

Go back to his original solicitor and get advice?

Have a look at Monique Wakelin's articles on the Eureka Report, these should provide some guide to you.

Depends upon how much risk (debt) you are comfortable with. Leave your PPOR unencumbered (so no risk on the roof over your head).Use the rental as an LOC (as above) for the deposit on a few properties (but leave enough in the kitty to cover any shortfalls due to vacancies, expenses etc). Use the other properties as the security for the loans.Other…[Read more]

I'd suggest locking new commercial  leases into cpi as a minimum, recently did a few at the greater of cpi or 4% as well as retail in shopping centres at 5%. You won't get away with a ratchet on the retail leases.

There are many things to consider when entering a commercial deal, least of all is the rent.You will need to undertake complete due diligence on the site, including have a qualified person look at things like any airconditioning systems, lifts, essential services compliance etc.You will also need to review each lease as there may be subtle…[Read more]

The vendor owns the property until title is passed to the purchaser up until that point your name is not on the title as owner although your solicitor may have placed a caveat on the property.If you are going to undertake a subdivision, it shouldn't be completed before ownership is transferred to the purchaser. BY all means, submit your DA (which…[Read more]

there are 2 ways of determining the street address of a property – one is Aust Post (the postal address, which in this case is the kingsway) and secondly Dept of Lands (lot and title details confirm property is Mansfield st not the Kingsway). Push the issue with the valuer that the properties on the Kingsway do have a Mansfield st address. Go to:…[Read more]

SM's are required to declare any kick-backs that they get (refer to "Secret Commissions" & TPA), there are penalties for non-disclosure. You wil however need to be able to prove the incentives. BTW, how could they justify using insurer X if they are more expensive (you may need to get the SM to call a few insurance quotes on the same basis to n…[Read more]

You have been assessed as owing land tax as the amount of land you own exceeds the threshold. A valuation would have been sent to you months ago and the period to object has passed (usually 60-90 days). Grin and bear it. Object on proper grounds in 2-3 years time when the next round of valuations is due.Diversify into other states where you can…[Read more]

Having been introduced to the property by the agent's sign, the agent can effectively say that you have seen the property due to their advertising. They generally retain the right for all introductions for a few months after their initial period has lapsed.The agent fee is generally neglible at the end of the day 1-3% of most sales, so go in hard,…[Read more]

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