Commercial Property In Darwin

[radelaide]

Anybody have any thoughts on the Commercial Property sector in Darwin? Nothing specific but just a general over view of the current market?

Also on a side note, does purchasing a commercial property affect your LAFHA payments in the same way residential does?

I am looking to get into a commercial property but have only done residential previously so needing advice.

Thanks in advance.

 

[Scott No Mates]

Check out the Knight Frank or other commercial market analysis.
What does your LAFHA cover? Difference between what you get on your house & what you have to pay? or is it calculated differently?

 

[radelaide]

LAFHA is meant to cover rent and some food usually. (which is doesnt but anyway lol)

If I purchased a house in Darwin I would loose my LAFHA, it would be equivalent to about $100k loss in income before tax, so obviously residential is out as an investment. I just want to know does the same exist for commercial? Technically i cant live in an office so i assume it must be different?

 

[Scott No Mates]

Buy it in your super fund (SMSF) with no LMI and it shouldn't affect your LAFHA.

Ooops just got carried away with the acronyms. But I would suggest putting it into your smsf just to get it further away from the employer's gaze. You should also be able to throw $25k pa (incl employer's contribution an salary sacrifice)+ spouse's contribution of similar amount and pay it off in no time & make it contribute positively to your super.

 

[Rooster]

How does buying a residential IP affect your lafha entitlements?

If your residential base or point of origin is listed away from Darwin then an investment property shouldnt interfere.

Where is your current residential address? How does buying residential in Darwin change this unless you plan to live there?

Rooster