Engines Of Wealth Are In The St George & The Sutherland Shire Leader!

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We are thrilled to be featured in todays edition of the St George & Sutherland Shire Leader!

We were recently interviewed by The Leader regarding our book and thoughts on the Australian property market.

As the title states, we believe that you shouldn’t give up on your home ownership dream! You just need to rethink your investment strategy.

Our book outlines the steps we took to building financial wealth and security. We go into explicit detail on how you too can build this wealth and positive income stream for yourself!

To read the full interview CLICK HERE >

To get a copy of our book Engines Of Wealth CLICK HERE > 

For One-On-One Consulting or Buyer Agent Services please CLICK HERE > 

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Air Conditioners

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One of the key reasons we selected commercial retail shops as the foundation of our wealth engine was due to the low maintenance aspect of these shops. In fact the only real major items of plant and equipment that is the responsibility of the landlord to fix is the hot water system and the air conditioner. The hot water systems are typically not that expensive at around $1,000 installed and will last between 8-10 years. So whilst it’s a good idea to understand how old the hot water system is it typically won’t be a factor in your property due diligence. Read more

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Dangers of Short Lease Terms

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One of the key things I like to see when buying a retail shop is a long lease. Not only does a long lease offer you security over future rental payments it wins the banks confidence in the asset as it presents with a higher WALE (Weighted Average Lease Expiry). In Engines of Wealth we discuss the WALE of a building as a measure of the lease term left to run. Read more

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The Value of Depreciation

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In my opinion Depreciation is the secret sauce when selecting retail shops as our wealth building engine. Our wealth building strategy is to create a long lasting income stream that is indexed to inflation and tax effective. Read more

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Guarantors

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A guarantor must be identified on the tenant’s lease, it could be the tenant or a friend/relative. A guarantor should be a person that has suitable assets to provide security over future rental payments. The subject of a guarantor is not only an important consideration at the time of purchasing a property, it is also important when a tenant has decided to sell their business or assign the lease to another party. Read more

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PROPERTY SEARCHES DURING DUE DILIGENCE

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PROPERTY SEARCHES DURING DUE DILIGENCE

I can safely say that the most important task your solicitor will conduct during the shop purchase process is due diligence, that is to ensure the asset you are buying has no encumbrances, will not be impacted by caveats, zoning changes or future government acquisition. Thorough due diligence is achieved by performing a series of statutory and non-statutory searches on the property you are buying. Each search has a specific use from ensuring the person selling you the property actually owns it, to checking future road widening will not encroach on your property causing it to be acquired by the government. Read more

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Tenants That Don’t Pay

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It would be a nice world if everyone did the right thing at the right time, for retail tenants that means paying their rent on the 1st of every month, like clockwork. Unfortunately we do not live in such a perfect world and you may come across a tenant that has poor cash flow and believes it’s OK to use you as his bank and is regularly late in paying the rent. Read more

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