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 | 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...
Recent Comments