ANZ gave me a pre-approval for a commercial property last Friday. So I jumped on realcommercial.com.au and within an hour found something awesome to buy.
By 10am Saturday I had exchanged contracts via email and paid my 5% deposit on the basis that settlement takes place in January so I can avoid the first year’s Land Tax (see I put my money where my mouth is).
5 years ago I never would have bought a property without bothering to go and see it first, but at the ripe age of 50 I trust my judgement; the risk of buying this property (which didn’t cost much and delivers a 4.7% net return) doesn’t scare me too much.
My SWAT Analysis of buying this is something I feel like sharing with you (S=strengths, W=weaknesses, O=opportunities & T=threats/tenancy risk)…
…what keywords I used to search online, what made me buy it so quickly, what entity I’m buying it in, and how the loan is being structured to provide the most tax-effective solution.
I’ll provide you with the address, the Information Memo I got, how much I offered for it, and list the reasons why it made sense to me.
I’m not showing off…hardly! I just want all my clients who put their trust in me to get the most value out of all the knowledge I have gained in my career in banking & running iChoice. I reckon there’s nothing like a real-life example and I hope you/ your kids etc can take something out of how I have learned to select properties.
So look out for my email in January, after it settles (don’t want to jinx it).
I don’t have all the answers but can offer you my own point of view. That’s how I’ve grown the last few decades, by listening to a bunch of educated opinions.
Some people get caught up with interest rates and the like and I know I ramble about rates and structure all the time (which of course is important). But there’s a lot of other juicy stuff that’s most important. It’s what makes being a true advisor so cool.
The best part is that the banks pay me for refinancing your loans, which means all the extra advice I can provide you with comes at no cost. What a win-win!