Knowledge Hub
What is a Lease?
A lease is a legal agreement between a landlord (lessor) and a tenant (lessee) that grants the tenant the right to occupy a property (premises) for a specific period (term) in exchange for rent payments.
What is a Property Trust?
A property trust or a ‘REIT’(Real Estate Investment Trust) is a way to invest in real estate without directly purchasing properties.
WHAT IS COMMERCIAL PROPERTY?
Commercial property is essentially any land or building used for business purposes, as opposed to residential living.
HOW IS PROPERTY VALUED?
Property is valued for a range of different purposes including: accounting purposes (such as calculating the regular value of units in a property trust), tax purposes (eg for levying land tax or council rates), legal purposes (eg settling a deceased person’s estate or a dispute) and for lending purposes (eg a bank determining how much it is willing to lend).
HOW DO UNIT PRICES MOVE?
Understanding how your returns are calculated as an investor is an important part of your knowledge base.
Essentially, as a property fund investor, your returns are made up of distributions (eg monthly cash payments) and changes in the price of your units.
COMMERCIAL PROPERTY INVESTMENT
Commercial property, like office buildings, shopping centres, or warehouses, can offer a compelling investment opportunity. Here's a breakdown of some key considerations.
TAX DEFERRAL OF DISTRIBUTIONS
Tax deferral is a significant benefit offered by Australian property trusts (REITs), providing investors with greater control over when they pay tax on certain distributions. This feature can enhance the after-tax returns of an investment and is particularly relevant for long-term investors.