Forums / Property Investing / Help Needed! / Commercial properties.

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  • Profile photo of devo76devo76
    Member
    @devo76
    Join Date: 2007
    Post Count: 542

    I had a quick chat to a family friend recently who,s advice is well worth listining too. There portfolio includes. Housing into the 50 plus, resorts,commercial properties and many other adventures. There personal wealth is well, to say 30 million would be a insult. The last property they aquired ( A small island no less) sold for 10 million. Any way the point im trying to make is there info is worth gold. I asked quickly what would be a good way to get moving. They told me that they bumped along for many years when they where young but not really doing anything fantastic. What made the break for them was well picked commercial properties( They started with storage sheds).
    Anyway my question is what info do you guys have in regards to purchasing commercial property.
    Whats good, Whats not and what to look for. Any info would be great.
    PS Before you ask yes i plan on talking to them again soon but they have just gone over seas to look over a shopping centre they are building. Its not crap either these people have done very well for them selves.Nice people too. Very cut throat in buisness but still very nice.

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    You should learn as much as you can from them.

    Don't just take – offer them something in return, good company, meals etc are all appreciated by people.

    Ask to buy into a project maybe?  But make sure you are in a position to move if they offer you a crack at something.  don't just tyre kick and spoil an opportunity.

    Cheers,

    Profile photo of frangipanniteafrangipannitea
    Member
    @frangipannitea
    Join Date: 2007
    Post Count: 11

    I would love to get into good commercial property – have looked into going partners with my brother as 'good' properties seem to start around 500k and the lending criteria if far less generous in terms of LVR as compared to residential.  At this point, I think the only way in for me is to get a little more equity from residential investments and then go in using existing equity alone to avoid having to meet commercial lending criteria ( we buy with low doc loans as we are self employed).  I  don't like dealing with niggly tenant dramas so I love the idea of the tenant being responsible for maintainence and outgoings, and obviously the higher returns.  I would like to hear form people who are already in commercial propery also.

    Louise

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    Loiuse

    There are many lodoc Commercial loans available at comeptitive interest rates and would certainly be preferable to take some debt against the security you are buying rather than using up all of your equity from your residential properties.

    Most lodoc loans will go to a maximum of between 70-80% LVR (I appreciate that 95% lodoc is available) and lodoc commercial is not too disimilar.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Casper_1000Casper_1000
    Participant
    @casper_1000
    Join Date: 2004
    Post Count: 35

    I'm also interested in commercial property for the same reasons but want/need to start small by looking at storage units and car parks.  I'm currently reading 'How Investing in Commercial Property Really Works' by Martin Roth and Chris Lang.  This months edition of 'Your Investment Property' has an article on commercial property.  See http://www.yipmag.com.au  It states that storage units are the fastest growing commercial sector in the US.

    I'll keep you posted.

    Profile photo of FizzypoppFizzypopp
    Member
    @fizzypopp
    Join Date: 2007
    Post Count: 13

    The growth rate in Commercial Real Estate in Dubai has been on the increase for some months. It has taken over from Residential in terms of the take-up rate and we are now seeing REITS and Fund Management Groups buying up wholesale. Look for where companies are re-locating to and why. This will give you a good indication of trends. Looking for areas with lowering manufacturing or service sectors that are intent on outsourcing will only lower take-up rates and lower values. Follow company intent — especially corporates as where the 'BIG BOYS' go the minnows follow to serve.
    Paul

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    What LVR can Australian Citizens borrow in Dubai for Commercial property Paul ?

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of MooseheadMoosehead
    Member
    @moosehead
    Join Date: 2006
    Post Count: 42

    Before I get into commercial property directly, I'm planning on building up some holdings in LPTs.  Factoring in the work & stress involved with managing a commercial property I think it would be hard to beat the return of the high rated LPTs which require next to zero personal management oversight!  Maybe one day when I'm a little more 'seasoned' as an investor but not right now :P  Anyone had success in getting a decent LVR on a margin loan for LPTs?  Say 60-70%?  Oops there I go thread hijacking again. Sorry.

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