Personally ZJ, I will be looking at areas which have suffered the greatest median price reductions over the past 2-3 years ie western suburbs. These areas will have the greatest rate of recovery (rebalancing/price relativity) compared to the more affluent areas which have been experiencing prices growth over the last few years.

Get a commercial property report , speak to the local agents, etc (all the usual suspects).Do your research via RP Data etc – if it is a regional area with few comparable sales you may need to search other areas with similar characteristics/demographics to determine appropriate rents/caps etc.

The ability to rent out a property is ALWAYS with mortgagor consent – I should have expressed it more clearly. Thx RT

POS it depends on the type of business – however it is worked on a multiple of profit. You will need your accountant to review a number of years of business records to determine whether the profits are realistic and sustainable, whether they are cooking the books or whether there are timebombs under the figures.As for the freehold, you will need…[Read more]

Having done a law degree, you will (most likely) have a substantial HECS debt, esp if you qualify for youth allowance. Why did you elect to do a law degree if you have already decided that you will not go into practice (whether it be public or private)? There are other avenues to utilise that legal mind in the corporate world however you must do…[Read more]

What you might consider is a pre-payment of interest (in June) if you need to have an expense. As Terry points out, you shouldn't leave the company in a position that it needs to borrow funds to pay the ATO (or pay late fees) – these are not deductible expenses.There should be nothing stopping the company leasing the property to anyone it likes…[Read more]

No such remedy – take it on the chin. Solicitor has to serve notice to complete after the vendor delays the settlement for 14 days then they have a further period of ?? days to complete the contract. You never know, the vendor may be waiting on vp of a 3 bedroom unit where the current tenant is waiting for settlement of their new house.

Depending upon the state that the property is in, you should be able to pick it up from the Newsagent.

It sounds like someone has been reading the Jenman website, Johchu. I'd agree, dodgy at best but may have been worthwhile if you were in WA or Qld over the past 5 or so years where there has been enormous capital growth.

Thanks Tracey for the further info, I too would have applied a higher yield like the other two valuers. I did recently note the conclusion of a sale of a boarding house in Sydney prior to Christmas, well located etc but with an 8-9% yield also (refer Saturday Business SMH (commercial property section – deals) Dec 07 – sorry can't be more…[Read more]

I have had a few dealings with NSW DOH, (at their Liverpool & Ashfield admin offices). Both of their property groups seemed to be on the ball but quite stretched (had taken on responsibilities for other departments). Their works were done on the 'cheap' but always with licensed contractors – they have a panel of prequalified licensed contractors…[Read more]

As Steve points out, essentially you are buying a cashflow business – ie your role is to manage the accommodation and to get commission from this management. If it is a shortstay/motel arrangement, then ensuring that you maximise the occupancy of the premises will ensure that you will be on track to max your commission.Consider what forms of…[Read more]

Tracey, It may well be worth querying both of the valuers as to why they have given the property such a high yield – does the property have some unrealistic risks which can be mitigated? eg asbestos roof, short rental history, poor covenants (short term/monthly leases)? Is the building old and in need of major work (this is often the case in…[Read more]

It may pay to contact a consultant hydraulic engineer to assess the claim.

Happy NY Tracey.Firstly, what do you mean by market valuation? Is this what an agent has told you the property is worth? That is not MV.Sure, a tighening of the yield from 9.2% to 8% might sound fair however the valuers have taken into a number of considerations in preparing their assessments (and these would have been listed in their valuation).…[Read more]

It is still possible to pick up houses in the Greater Sydney Basin which will return 6% as is, with a little work that will increase.

Have a squizz at the AFR from the 28th Dec – good guide to all states markets including compounded annual growth rates. The questions remain: how much of this growth is sustainable? Now that the other capitals have caught up with syd/melb will the great divide still exist or will they go into decline or overtake these two? What is affordable…[Read more]

Was the $1000 paid prior to signing the contract for sale or provided after the signing of the contract? Even at auction, 10% is required unless you have made prior arrangements.NSW & Vic both require 10%, less by negotiation.  Qld I think is the same.

Sorry about that, I should have said market rent review.PS you may be better off registering for GST even though the rent may not exceed the trigger amount but the prospective tenant may require tax invoices.

Just ensure that the company reimburses you for the payments ie have proof of payment and invoice to company.