People love investing in property. They often start by buying their first home and then investing in another residential property as part of their retirement planning and wealth creation strategy. Commercial property is sometimes viewed as risky when really it is just not well understood. The dynamics of commercial property are different but not more complicated - they just need to be explained simply.
Commercial Property Investing Explained Simply breaks down the types of commercial property investors can choose from - it's not just about retail and office property, but warehouses and industrial property can be remarkably resilient and offer good returns.
The author discusses how to find the best property for you, crunch the numbers, do the due diligence, find and manage tenants and much, much more. There is even a chapter on surviving a downturn.
Steve Palise uses his analytical skills to break down what works best in commercial property. His philosophy is that your investments should increase your wealth and passive income with as little risk as possible. With his straightforward and positive attitude, Steve believes property investing should be not only smart, but also fun!
Steve Palise has worked for Australia's leading buyers' agencies acquiring hundreds of commercial properties for himself and his clients. He has been involved in more than 1,500 property acquisitions.
Steve also worked as a chartered mechanical and structural design engineer for 10 years sees many similarities between that work and commercial property. Both are based primarily on the numbers and there is less emotion involved than with other assets. In the corporate world, he saw limits on his career but realised that property investment meant he could leave the workforce sooner rather than later. Having acquired an impressive property portfolio, he is passionate about helping others to achieve their goals and financial freedom.
Why commercial property? 1
PART I: Residential versus commercial property 7
PART II: Types of commercial property 21
Chapter 1 Industrial property 25
Chapter 2 Retail property 31
Chapter 3 Office property 37
Chapter 4 Other property types 41
PART III: The numbers 45
Chapter 5 Purchasing costs 49
Chapter 6 Yields 53
Chapter 7 Leases 55
Chapter 8 Outgoings 75
Chapter 9 Depreciation 83
Chapter 10 Capitalisation rate and property value 87
Chapter 11 Cash flow 93
Chapter 12 Capital growth 99
Chapter 13 Growing the portfolio 109
PART IV: Buying and selling properties 117
Chapter 14 Preparation 121
Chapter 15 Searching for properties 129
Chapter 16 The acquisition process 135
Chapter 17 Selling properties 143
PART V: Due diligence 149
Chapter 18 Initial due diligence 153
Chapter 19 Area research 157
Chapter 20. Tenant and business analysis 165
Chapter 21. Building and pest inspections 173
Chapter 22. Due diligence checklist 177
PART VI: Conveyancing, finance and buying structures 187
Chapter 23. Conveyancing 191
Chapter 24. Finance 195
Chapter 25. Types of lenders and loans 201
Chapter 26. The loan process 213
Chapter 27. Buying structures and syndicates 223
PART VII: Post-purchase 233
Chapter 28. Property management 237
Chapter 29. Value-adding 249
Chapter 30. Surviving a downturn 253