Thought I would contribute back and share our journey toward our very first CIP..
Whilst I cannot share too much at this stage as the ink is still drying on the contract I will try and keep you updated over the coming weeks of our Journey in securing our first Comm Property.
DING DING.... Round # 1
Here what I can tell you about the property.
It's a factory / warehouse (with an office component) located less than 5 Klm's from Melb's CBD.
It's over 1,000sqm in size and in moderate to good condition for it's age.
It's over the 39 year cut-off for depreciation so we will request that any chattels are listed on the contract to allow for some deprecation.
Property was previously owned by a facilities management company who have kept up the maintenance of the property and we're hoping we'll need to do nothing to get a tenant...
Because the property is vacant, finance will (as always) be the number one area we'll need to work hardest at.
It's also in an area that doesn't have a huge amount of stock coming onto the market for comparison so the valuation could go either way. I'm hopeful given it's proximity to the CBD that it shouldn't be too hard to find a tenant.
Given where we are at, can I ask for your suggestions on all the things (great and small) that you believe I should be considering?
Whilst I've got a general idea, this is our first CPI and hence the learning curve will be steep so any advice will be most appreciated.
Questions I have:
1: I understand you can only depreciate a building up to 39 years old (so there is no depreciation left) however it's had an office fit-out that was completed recently. Should I get this and any chattels listed on the contract of sale? Is there any tax advantage to this? And how would I determine the value?
2: Access: We wish to have access during settlement so we can looking for a tenant immediately. We've stated this on the contract and I suspect we'll need to make a contribution to the rates during this period...correct?
3: Other than hounding the broker and valuer on a daily basis, is there anything else I should be mindful off that could delay settlement? How long before I should start panicking about finance and the valuation?
4: Any other tips and tricks that you can recommend that can either save us $$$ or ensure the process runs as smoothly as possible..
That's about it for the moment. I'm sure I'll have many, many more questions over the coming weeks and as mentioned, I hope to update you all as the journey progresses.
cheers
B.D.
PS: In boxing terms, I guess you could class us as pinweight for the moment....
Whilst I cannot share too much at this stage as the ink is still drying on the contract I will try and keep you updated over the coming weeks of our Journey in securing our first Comm Property.
DING DING.... Round # 1
Here what I can tell you about the property.
It's a factory / warehouse (with an office component) located less than 5 Klm's from Melb's CBD.
It's over 1,000sqm in size and in moderate to good condition for it's age.
It's over the 39 year cut-off for depreciation so we will request that any chattels are listed on the contract to allow for some deprecation.
Property was previously owned by a facilities management company who have kept up the maintenance of the property and we're hoping we'll need to do nothing to get a tenant...
Because the property is vacant, finance will (as always) be the number one area we'll need to work hardest at.
It's also in an area that doesn't have a huge amount of stock coming onto the market for comparison so the valuation could go either way. I'm hopeful given it's proximity to the CBD that it shouldn't be too hard to find a tenant.
Given where we are at, can I ask for your suggestions on all the things (great and small) that you believe I should be considering?
Whilst I've got a general idea, this is our first CPI and hence the learning curve will be steep so any advice will be most appreciated.
Questions I have:
1: I understand you can only depreciate a building up to 39 years old (so there is no depreciation left) however it's had an office fit-out that was completed recently. Should I get this and any chattels listed on the contract of sale? Is there any tax advantage to this? And how would I determine the value?
2: Access: We wish to have access during settlement so we can looking for a tenant immediately. We've stated this on the contract and I suspect we'll need to make a contribution to the rates during this period...correct?
3: Other than hounding the broker and valuer on a daily basis, is there anything else I should be mindful off that could delay settlement? How long before I should start panicking about finance and the valuation?
4: Any other tips and tricks that you can recommend that can either save us $$$ or ensure the process runs as smoothly as possible..
That's about it for the moment. I'm sure I'll have many, many more questions over the coming weeks and as mentioned, I hope to update you all as the journey progresses.
cheers
B.D.
PS: In boxing terms, I guess you could class us as pinweight for the moment....