10 Questions on Commercial Property...
Hi Chris,
I will endeavour to attend the seminar, if I am in Melbourne on that date. I'm sure a few here on the forum will attend.
Generally speaking, some things to address for beginners to commercial property investing - either on the forum or in seminars or books, could be:
(1) Commercial property cycles: typical patterns for each sector (office, retail, industrial) and where we are at the moment in each sector's cycle in Melbourne/Victoria as well as other capital cities/other states. Any general comments about the nature of each sectors cycle, eg, how long they are, how it progresses and the key influences on each cycle...?
(2) What is the best sector to start in for someone investing in commercial property for the first time, and why? The pros and cons of each sector for a beginning investor?
(3) What are the entry price levels? Is it worthwhile investing at lower price levels - aren't you taking on a significantly increased risk due to having smaller businesses as your tenants?
(4) Purchase as vacant possession vs going concern - pros and cons?
(5) How do you determine the best cities/suburbs/areas to buy properties in each of the different sectors? Eg, Melbourne vs Sydney, CBD vs inner vs outer vs regional vs rural cities/suburbs/towns? Ie, say you decide to start off in office property, where is the best place to start looking for them, if you have say 250k, 500k, 1Million, 2Million dollars etc to invest...?
(6) What are some important criteria in individual property selection, for each sector?
(7) Important aspects/clauses involved in negotiating contracts to purchase and lease agreements, as well as financing.
(8) How do you value a commercial property? What data is needed to do this, where do you find this data?
(9) Learning by doing is important, but is there any other essential information that one should read about or know, before jumping in? Any pitfalls, dangers, any obvious things that one should be aware of?
(10) MOST IMPORTANTLY, worked examples of commercial property purchases, with a focus on showing why you chose that property, how you valued it, how you negotiated the purchase, found the tenant, negotiated the lease agreement and financed the whole thing.
See this worked example, started a few years ago, which was very helpful - http://www.somersoft.com/forums/showthread.php?t=288 - a great way to understand commercial property investing in a practical, staight-forward manner.
Thanks!
GSJ
Hi Chris,
I will endeavour to attend the seminar, if I am in Melbourne on that date. I'm sure a few here on the forum will attend.
Generally speaking, some things to address for beginners to commercial property investing - either on the forum or in seminars or books, could be:
(1) Commercial property cycles: typical patterns for each sector (office, retail, industrial) and where we are at the moment in each sector's cycle in Melbourne/Victoria as well as other capital cities/other states. Any general comments about the nature of each sectors cycle, eg, how long they are, how it progresses and the key influences on each cycle...?
(2) What is the best sector to start in for someone investing in commercial property for the first time, and why? The pros and cons of each sector for a beginning investor?
(3) What are the entry price levels? Is it worthwhile investing at lower price levels - aren't you taking on a significantly increased risk due to having smaller businesses as your tenants?
(4) Purchase as vacant possession vs going concern - pros and cons?
(5) How do you determine the best cities/suburbs/areas to buy properties in each of the different sectors? Eg, Melbourne vs Sydney, CBD vs inner vs outer vs regional vs rural cities/suburbs/towns? Ie, say you decide to start off in office property, where is the best place to start looking for them, if you have say 250k, 500k, 1Million, 2Million dollars etc to invest...?
(6) What are some important criteria in individual property selection, for each sector?
(7) Important aspects/clauses involved in negotiating contracts to purchase and lease agreements, as well as financing.
(8) How do you value a commercial property? What data is needed to do this, where do you find this data?
(9) Learning by doing is important, but is there any other essential information that one should read about or know, before jumping in? Any pitfalls, dangers, any obvious things that one should be aware of?
(10) MOST IMPORTANTLY, worked examples of commercial property purchases, with a focus on showing why you chose that property, how you valued it, how you negotiated the purchase, found the tenant, negotiated the lease agreement and financed the whole thing.
See this worked example, started a few years ago, which was very helpful - http://www.somersoft.com/forums/showthread.php?t=288 - a great way to understand commercial property investing in a practical, staight-forward manner.
Thanks!
GSJ
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