Tax jump jolts investors
Many had raised serious concerns about the transparency of the Australian investment landscape and were considering alternative investment destinations.
A leading Australian property group has strongly criticised federal government tax changes, arguing they have stopped international investors from putting their money into Australian property.
The government in the budget doubled the withholding tax rate for international managed investment trusts (MIT), from 7.5 per cent to 15 per cent. The measure has since been approved in the Senate, with a concession for new energy efficient buildings.
Peter Frith, managing director of property and development adviser, Napier & Blakeley, said the action, with no consultation or warning, was a huge mistake and was apparently based on misguided thinking. Continue reading
Strategy with the Sales Process
Those in the business of selling commercial property can achieve the best price within a short period of time through a staged approach to technical due diligence.
The old adage of ‘buyer beware’ typically means that purchasers conduct their own technical due diligence which can uncover late in the day surprises relating to condition, deferred maintenance, non compliances with statutory obligations or capital expenditure needs. These may include deal breakers or points of negotiation on price and contractual conditions.
These late in the day uncertainties can be mitigated by vendors who take a staged approach to technical due diligence and where the end result, the technical due diligence report, can be assigned to the purchaser. Continue reading
