by Alex | Apr 10, 2018 | Our Views and Opinions
An Amazing and once again a steller result from the team at CBRE last month when one of the “right side of the road” assets we talked about in our article in May last year sold prior to auction for a figure of 17,115,000,. This equates to a yield of 2.57 per cent and setting a record for an asset of this type. Located at 1389-1391 Centre Road, Clayton and on the west side of the Clayton Road strip the property started out with a price guide of sub $10 million. This asset is subject to long term lease earns an net income of around $440,552 per annum. The Coles Clayton, occupying a 2883-square-metre site, had been held in the same family for 23 years. Domain records show the property was purchased in 1995 for $3.15 million....
by Alex | May 28, 2017 | Our Views and Opinions
With July 1 approaching we have been looking at the proposed stamp duty changes. Off-the-plan concession – to be taken away from Investors Under the change proposed for July 1 2017, the off-the-plan stamp duty concession will now be available only to buyers who occupy the property as their principal place of residence. Currently a concession applies to off-plan purchases whereby the dutiable value is the value of the land and any building works undertaken at the time of the contract. As of July 1, 2017 an investor will have to pay stamp duty on the full contract price of the purchase. For example on a $435,000 apartment, the current dutiable value for all purchasers currently stands at $435,000 less any value of building works not undertaken at the time of the contract (the purchase is “off plan”), this could be $435,000 less the incomplete building works. Therefore the dutiable value could be just 25% of the purchase price ie $108,750. Property – Price Dutiable Value Current Dutiable Value From July 1 $ 435,000 $108,750 $435,000 The Stamp duty on the lower dutiable value is $2,360 and the higher is $21,170 This applies only to Investors; owner occupiers from July 1 still pay the lower of the two stamp duty amounts. First home buyers Under the change proposed for July 1 2017, first home buyers purchasing either new or existing properties of not more than $600,000 will pay no stamp duty. For purchases between $600,001 and $750,000 the discount will be tapered. For the above purchase of a unit of $435,000 the stamp duty applicable will be...
by Alex | May 15, 2017 | Our Views and Opinions
In our recent review of the Clayton Road Main street commercial sales market we noticed some discernible differences in the value rates across the building area, site area and net rents when looking at the east and west side properties.. In recent years the Clayton Road strip has seen some changes as have many of the suburban main-streets in Melbourne. We are always learning new things about this locality and just discovered there are a couple of great spots for coffee and the place generally has a strong vibe about it. The Clayton Road shopping main-street is located some 18kms from the CBD and it is included in the massive rail investment currently underway in the road/rail separation program. When looking at some of the recent sales results, we did notice a discernible difference in the East and West side metrics. Here are the numbers: These figures have been sourced from the latest sales results. Although not a common occurrence, we have the west side of the main-street having direct access to a large on grade car-park and 2 Coles supermarkets at each end (one of these was once a BILO). Basically, access to the Coles supermarkets and the shared on grade parking does affect prices being paid for properties....
by Alex | Mar 18, 2016 | Property Development & Project Planning
Last month we posted our project planning checklist and we thought we’d follow up with some commentary regarding the property selection process. In particular renting vs buying and once you have selected a location, understanding local planning rules. Rent vs Buying Our first statement regarding this question is, firstly look to secure a property that will make your practice a sustainable business. This means finding the right location for your practice and this may mean you rent in a location rather than buy for the sake of buying. Property ownership, however, does have its benefits and we will cover this at a later date. Renting commercial premises can be a fairly straight forward process and you could secure a great location for a long lease. A good start is discussing the matter with your solicitor or property advocate. Regarding renting, our main tip is don’t be afraid of a long lease, a landlord should always be open to a lower rent if they know you are in for the long term. You can always sublet the space if you do end up buying and familiarise yourself with the Retail Leases Act as the obligations of the owner and yourself will be covered by this. If you decide that buying is the next logical step and you think a residential property for conversion is the right course of action, this is where the “converting a home to consulting rooms” journey begins. Once again, refer back to our project planning checklist and sit down and start planning the size of premises you need before you start the property search. Understanding the...
by Alex | Feb 27, 2016 | Property Development & Project Planning
We are regularly asked what is involved in the conversion of a house to medical consulting rooms. At the end of the day, converting a residential property used to be quite simple but it is worth asking a few questions that will help marry the property plans with the practice/growth plans. These questions can centre on: Rent vs buy, and what to buy. Planning and design of the new rooms – do you convert or new build. Consulting your neighbours and paving the way for a planning approval. Financing the project. The Building process. Sharing the space/rooms, finding other tenants. Moving in and finally managing the property and practice. On the project planning side (medical and other) we follow a process and a few steps. We have set this out on a one page summary so that it can give you a snapshot of taking your property through the conversion...
by Alex | Jan 31, 2016 | Uncategorized
We were engaged by ACH Group to search for and secure a new eastern Victorian office. In late 2015, we were pleased to see ACH move into the new premises at Tally Ho Technology Park in Burwood. ACH Group is a not-for-profit organisation which has been supporting older Australians since 1952. The team at ACH offers a wide range of services including retirement and residential accommodation options, domestic, personal and nursing care in the home, respite choices and short-term transition services...
by Alex | Nov 13, 2015 | Spaces Leased
Our team has successfully concluded a leasing deal for our client, the owner of 289 Ingles Street, Port Melbourne. IT Services business ANNEXA has taken a 250m2 space on the upper level. Annexa has been delivering software solutions for their clients since 1994 and is a specialist solutions provider around a number of software platforms. The team at Annexa implement some of the world’s leading products including Netsuite, Sage and Accellos and seek to constantly identify and procure products that best serve their client’s current and emerging needs. Both Owner and Annexa were pleased to finalise a lease for the space for an initial 3 year term with a 3 year option. The new office was completed in October and has become a welcome addition to the character filled former warehouse that has high ceilings and plenty of natural light, importantly Annexa now occupy almost a whole floor of contiguous space that is definitely a lot more comfortable than their previous “tight” space across two levels in a multi-unit office park. From all reports the Annexa team is settling right in and enjoying the new home....
by Alex | Nov 5, 2015 | Commercial For Lease
We are pleased to report that we have been appointed exclusive leasing agents for a stand-out property in a prime inner northern location. Purpose built and just completed, the 400m2 warehouse plus 175m2 office was designed to suit the owner with a specification unseen for a property of this size (such as hydraulic loading dock ramps). The office features Double glazed panorama windows with views out to the Dandenongs, Trapeze System LED lights plus aluminium power-skirting board giving you total flexibility on how to arrange the office. Also 5.5 star heating and cooling with multiple Daikin split systems. The Property is located at 27a Dawson Street, Coburg North. Call Alex on 0411 221 701 for a copy of our property report or contact us via our...
by Alex | Jun 14, 2015 | Spaces Leased
Lygon Family Dental has opened its new practice at 137 Lygon Street, Brunswick East. The team at Placeplan Property Services are pleased to have been part of the newest dental practice to arrive in Brunswick East. After a focused leasing campaign the space was successfully leased and to a business committed to its long term success. Placeplan (representing the owner) was keen to see a high quality community service provider compliment the already diverse retail offering on what is now one of Melbourne’s high quality main streets. The arrival and establishment of Lygon Family Dental exactly fitted the owners desire to secure a quality business that will make the space at 137 Lygon Street a successful business proposition and one that delivers on the needs of the local community. The benefits of the retail space at 137 Lygon Street were many and had received a lot of interest from a wide range of businesses, mainly from the service sectors. The owners of the dental practice were able to work with a brand new building that provided a “clean slate” including state of the art heating/cooling, carparking, access, security and the opportunity to provide modern signage to the all-important Lygon Street, Brunswick East frontage. Lygon Family Dental has set up state of the art facilities purpose designed to meet the modern needs of a local dental practice and the practice can provide digital X-Rays and OPG (Orthopantomogram). The design of the new practice was cleverly delivered to maximise convenience and patient comfort. There has been a definite trend back in recent years to more a user friendly personalised dental practice...
by Alex | Oct 13, 2014 | Our Views and Opinions
We know commercial real estate has a number of advantages over other investments, such as longer leases resulting in secure income streams and rents that can be agreed and substantially grown over time. On the flip side, finding the right tenant is critical to the success of your investment. We believe matching tenants to the right property and helping them conduct their business to generate success will translate in a good long term commercial property investment. Anyone considering investing in commercial property has a number of choices. Land Industrial Commercial Specialised Uses – Retail, Medical, Child Care To get started, you need to understand why you are investing and we always advise our clients to map out and agree their exit strategy before they commit to a property. In other words “know where the back door is before you go through the front door”. You don’t have to be a developer, but your exit strategy should revolve around making sure your investment can be converted to some other use once the market is ready – e.g. a small local shop may be developed to include apartments above it. For any commercial property we look at, we follow a step by step process to dig deep and uncover any aspects of the property that will impact on delivering a safe and secure income stream, that may be related to the structure of the leases, the type and mix of tenants right through to the condition of the building and any associated parking. We have conducted due diligence on hundreds of properties, we are experienced investors and client advisors and...
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