Percentage Split on Commercial Property When you look at commercial property and you are looking at buying a piece of commercial property that is a cash positive, look at the percentage split. Your percentage split basically is the cap rate or the yield that you are getting...
Commercial and Industrial Commercial or industrial investing is seen as the investment for the hardened investor and not something for a beginner. While in the most part I agree with the philosophy, the principles for investing in commercial or industrial property are the same as investing...
Break-Even Vacancy Factor When a property has a number of different tenants, your risk of having a vacant property is greatly reduced. You can work out what your breakeven point vacancy factor is. For example, if you buy a block of six units for $450,000 and each...
Higher Yield – Lower Risk When a property has multiple tenants and therefore multiple income sources, the return from the property is usually higher than having a single tenant dwelling. The cost of purchasing the property is usually not proportionately higher and the outgoings to maintain...
Multiple Incomes - Commercial In the commercial market, examples of multiple income stream properties would be a number of warehouses or strip complexes (that’s a row of shops, not a strip club!) rented out to different tenants. Shopping centres, office complexes and storage sheds are also examples...
Multiple Incomes - Residential In the residential market the most common of these are an entire block of units, complete residential apartment buildings, or a very basic example would be a house that rents out both upstairs and downstairs, (or a house and a granny flat...
Multiple Income Streams While direct cash positives properties can be sourced buying single residential houses, the yield or passive rental return is usually higher when you purchase multi-use or multi-dwelling premises i.e. properties that have more than one income stream. These properties come in the form of...
Housing in Rural Areas and Factors to Consider We have had a lot of need for housing in those growth areas. We have had a big push into those areas where the big money is being paid; where people are moving in. They want properties to...
High Demand and Regional Areas The ‘rule of two’ as previously mentioned in an earlier blog is only a rule of thumb and it does not apply to commercial property. If you’re taking tax into account it’s more like 1.6 to 1.7 rather than 2. When...
Looking at Rural Areas There has been a lot of emphasis on the rural areas, particularly the mining areas in Australia and rural areas in New Zealand (although in New Zealand hardly anything is remote rural) if it is not very far out of the major...