Jenny,

You have two approaches: buy assets and get outcomes; or set outcomes and buy assets.

The former means you get whatever the asset provides. The latter is more strategic and ensures you buy assets that will deliver an outcome that is congruent with your goals. I have always preferred the latter, although when I started investing, I did the…[Read more]

I have a 1-day seminar spot locked in for Sat 16th August in Melbourne, which I plan to call the 2025 Property Summit. I haven’t worked out speakers and syntax yet, but I expect a spot on commercial property to be definite.

I will send out more information in due course.

– Steve

Hey Chief,

Long time, no hear! Glad to see you are still patrolling here to keep things safe.

Some thoughts about each option:

1/ I don’t see this working for residential where gross yields are 3% and lower. For commercial it might work, but the cap rate would have to be higher than the interest rate, and then how would you repay the principal.…[Read more]

Thank you for your post.

The question here is does the shoe shape the foot, or does the foot shape the shoe?

I prefer the latter, so I would make a list of what operational requirements are needed, and then set a budget to see what you can source.

ChatGPT might be able to provide some guidance for a checklist. Here’s what my prompt…[Read more]

Ah Dear Danger Mouse,

I see the trap hasn’t caught you yet! Long may that be the case!

Some thoughts for you:

Buyer Advocates

Go in with your eyes open. The usual ways BAs role is that they lock up the deal, then try to shop it around. I would want to know if they have an immediate buyer. Beware the re-trade too at the end of DD (where they…[Read more]

Ah Dear Danger Mouse,

I see the trap hasn’t caught you yet! Long may that be the case!

Some thoughts for you:

Buyer Advocates

Go in with your eyes open. The usual ways BAs role is that they lock up the deal, then try to shop it around. I would want to know if they have an immediate buyer. Beware the re-trade too at the end of DD (where they…[Read more]

Some general observations:

1/ Sometimes council officers talk about what they’d like, which is different to what the regulations specifically require;

2/ A chat with an independent town planner about issues, and how to overcome them, is usually money well spent on deals worthy of closer due diligence;

Bye,

– Steve

Some general observations:

1/ Sometimes council offers talk about what they’d like, which is different to what the regulations specifically require;

2/ A chat with an independent town planner about issues, and how to overcome them, is usually money well spent on deals worthy of closer due diligence;

Bye,

– Steve

Is it physically possible? It sounds so!

Is it legal? That will depend on compliance with planning and building permitting.

Is it financial? That will depend on the cost vs. return.

Is it smart? That’s your call as beauty is in the eye of the beholder. It sounds like a hard way to make money to me re: a lot of aggravation. Also, it sounds like…[Read more]

Hello Aaron,

I don’t see why not, provided it is on an arm’s length basis.

For instance, Z Company P/L can rent from X Unit Trust, notwithstanding they are separate but related entities.

That said, it would be wise for you to speak to your accountant / lawyer about this to ensure the terms are appropriate.

Good luck!

– Steve

Hi,

First, I would disconnect the cameras so your privacy is not at risk.

Next, was the camera includes in the sale contract as a fixture? If so, I would go back to the lawyer / firm who did the conveyancing and seek their assistance. If not then I’m not sure where you stand.

All the best,

– Steve

Hi,

In the circumstance you describe the benefit of the tax shield from depreciation does seem marginal, especially if the extra income could justify higher borrowings.

Not everyone has a tax-free beneficiary to distribute to, and hence the depreciation tax shield is more beneficial.

Some time ago I wrote an article on the deception of…[Read more]

Hi,

Any vendor finance sale will need legal advice and careful structuring to consider stamp duty (will vary by state) and income tax implications.

I haven’t seen a loan in Aus that is assumable, but they may be out there. Typically larger commercial property deals are financed by commercial paper (such as rolling commercial bills), rather than…[Read more]

Hello George7,

You have identified an issue in your due diligence, and you are right to want to try to manage and mitigate it.

However, it appears you cannot do as the vendor will not wait.

If it were me, I would go under contract with a general 45 or 60 day due diligence clause and seek to do my own investigations. Perhaps you want to point to…[Read more]

Howdy Stargazer. Member since 2002 eh? Thanks for sticking with me :-)

The problem here is that you are letting the asset lead the outcome. That is, you don’t know what to do because you don’t seem to have a clear picture in your head about what you want your assets to achieve.

Here’s what I wrote in prep for a Money Magnet podcast yesterday:…[Read more]

Howdy Stargazer. Member since 2002 eh? Thanks for sticking with me :-)

The problem here is that you are letting the asset lead the outcome. That is, you don’t know what to do because you don’t seem to have a clear picture in your head about what you want your assets to achieve.

Here’s what I wrote in prep for a Money Magnet podcast yesterday:…[Read more]

Howdy Stargazer. Member since 2002 eh? Thanks for sticking with me :-)

The problem here is that you are letting the asset lead the outcome. That is, you don’t know what to do because you don’t seem to have a clear picture in your head about what you want your assets to achieve.

Here’s what I wrote in prep for a Money Magnet podcast yesterday:…[Read more]

Hi,

This is an interesting question and I would have thought something would be legally possible, I just don’t know how. As it is a legal matter, it is best to seek legal advice. You may also like to look into reverse mortgages (do your due diligence) as a way of unlocking equity.

I imagine there will be taxation consequences of co-owning, and…[Read more]

Thanks for the post.

I’m sad to learn your professional network is telling you something can’t be done when mine time and time again says it can be (and I continue to use and apply it).

I’m not sure how you reconcile that, and I’m over repeating myself over and over and over again on this issue.

If you can’t,  you can’t. If you can, you can.…[Read more]

Thanks for the post.

I’m sad to learn your professional network is telling you something can’t be done when mine time and time again says it can be (and I continue to use and apply it).

I’m not sure how you reconcile that, and I’m over repeating myself over and over and over again on this issue.

If you can’t,  you can’t. If you can, you can.…[Read more]