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Property Report September 2019

September 30, 2019 by Konnect Digital



Do it yourself vs Property Adviser

Property is found in the investment portfolio of many people. In fact, roughly two thirds of adult Australians possess property as one of their assets. The purchasing of a property can be for many people the largest investment that they will ever make, and the daunting fact is that many people opt for the DIY solution, despite the fact they will be outlaying hundreds of thousands of dollars.

Like any job that you outsource be it your lawns being mowed, your car being washed or a Mortgage Broker sourcing your home loan, there needs to be a significant reason or value for utilising the services of the subject matter expert.

Below is an example of a purchase where a Property Adviser has achieved even a slight improvement versus the regular DIY purchaser.

You often hear in the sporting parlances that it’s all about those small percentages which add up to a great outcome. In this example the following has been assumed for the purpose to highlight the magnified affect, which 1% can actually have.
The property Adviser has achieved a further 1% discount off the purchase price than the DIY purchaser
The Property Adviser has achieved an additional 1% per annum in the capital growth over a 10-year period.
The Property Adviser has achieved an additional 1% per annum for the yield over a 10-year period.

Commercial Tenant Representation Services:

Who’s in your corner?
Lease Negotiation: Negotiating smart and with a strategy in place will often result in substantial bottom line savings to your business overheads.

Example:
Commercial Rent: The difference in rent savings over the life of the lease if you negotiate just two key things, initial rent & annual increases.
Asking rent: $100,000 PA
Negotiate $90,000 PA
Asking annual increases: 4%
Negotiated: 3%
Outcome:

Case Study

Location: Parramatta

Locate Negotiate was engaged to guide the financial advisory firm in its search for optimal, right-sized office space. The firm wanted to upgrade their office space, reduce their footprint and create a more collaborative workplace environment including open individual office spaces, boardroom, meeting rooms and create a more professional first impression look for their clients.

Solutions:
Commence the assignment with a comprehensive brief from their client
Conduct a market search, evaluate and inspect 11 properties
Issue a request for proposal to 4 properties
Narrow the search to two preferred choices, including the client’s existing building.
Results:
A long-term lease amendment/extension was completed with the client’s existing landlord.
The firm’s leased premises were reduced in size by 170sqm
Through negotiations, we achieved a rental rate reduction of $30 per sqm off the initial proposal and an additional 2 month rent free term incentive
The resulting space increased access to daylight and improved collaborative spaces.

Investing

We offer a variety of property solutions for clients. Let us know if we can assist.