I'd prefer something with a mixture of retail and office. Industrial sounds good because of the lack of jurisdiction of the Retail Leases Act but I think the whole manufacturing space isn't a good one right now particularly in Victoria.
Planning for CIP No.1
- Thread starter younguns
- Start date
I'd prefer something with a mixture of retail and office. Industrial sounds good because of the lack of jurisdiction of the Retail Leases Act but I think the whole manufacturing space isn't a good one right now particularly in Victoria.
There's a few lenders that don't have periodic reviews. One of them is IMB who has a no-fee / no annual review product. I haven't got an update from them since the RBA rate reduction but I would expect them to price around 7.8% variable after the change.
Thanks for the revival of this thread.....I read with interest as I too am travelling down this road!
pinkboy
Update
Hi all,
We have nothing exciting to report yet. We decided we wanted to get a decent buffer behind us before venturing into the commercial world. I don't think we quite realised exactly how much of a buffer we would need to sleep well at night!
We have been tight for a long time cash flow wise and would like to get the balance right.
Commercial is definitely still on the agenda but I would say we are 2 years away now. The plan is to pay down non deductible debt and focus on the family until we are a little more comfortable.
Good luck with your purchases. I will read with great interest on your progress
Hi all,
We have nothing exciting to report yet. We decided we wanted to get a decent buffer behind us before venturing into the commercial world. I don't think we quite realised exactly how much of a buffer we would need to sleep well at night!
We have been tight for a long time cash flow wise and would like to get the balance right.
Commercial is definitely still on the agenda but I would say we are 2 years away now. The plan is to pay down non deductible debt and focus on the family until we are a little more comfortable.
Good luck with your purchases. I will read with great interest on your progress
Yes following this thread with great interest as well. I am on a similiar crossroads. I have the 2 x IP and a PPOR. My next target is to
a) Invest in a residential with potential for subdivision or b) Invest in a CIP circa 500 - 600k.
I am leaning towards b) as I am finding whilst residential tenants are easy to find, they move so often and the cost of re-leasing is such a pain - an I only own 2!
I have been reading a lot and I agree good consistent information is hard to find. This forum has been super helpful. After so much reading, I think my action plan would be something like this:
1) Find a commercial property buyers agent. To assist with the due dligence process. Its not that I dont do enough research, but I think there is just things that I dont know I dont know. If that makes sense.
2) Find a loan broker
3) Find a solicitor
4) Find a managing agent
Breaking it down like that, it doenst really seem all that different to residential property. This was exactly what I did for my RIPs, although I didnt use the buyers agent as I was a lot more confident then. The biggest task for me is probably the change of perspective and the misconception that CIPs a lot more risky and only for the big shots.
Is my action plan to simplified? Am I missing something?
Just as a side note - Is negative gearing available for CIPs as well?
a) Invest in a residential with potential for subdivision or b) Invest in a CIP circa 500 - 600k.
I am leaning towards b) as I am finding whilst residential tenants are easy to find, they move so often and the cost of re-leasing is such a pain - an I only own 2!
I have been reading a lot and I agree good consistent information is hard to find. This forum has been super helpful. After so much reading, I think my action plan would be something like this:
1) Find a commercial property buyers agent. To assist with the due dligence process. Its not that I dont do enough research, but I think there is just things that I dont know I dont know. If that makes sense.
2) Find a loan broker
3) Find a solicitor
4) Find a managing agent
Breaking it down like that, it doenst really seem all that different to residential property. This was exactly what I did for my RIPs, although I didnt use the buyers agent as I was a lot more confident then. The biggest task for me is probably the change of perspective and the misconception that CIPs a lot more risky and only for the big shots.
Is my action plan to simplified? Am I missing something?
Just as a side note - Is negative gearing available for CIPs as well?
Yes, just as it is for shares, and other income generating investments.
Could be your next project!
If you want to NG commercial property, then I think you miss the point of commercial property.
I think the intent of the comment was to question if expenses are deductible against income rather than strictly meaning negative gearing.
That's not strictly NGing, that's deductibility.
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