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...
Recent Comments