Commercial

Property problems: Commercial investment needs careful work

Q: After all the publicity about residential property I have decided to look at putting some surplus funds into commercial property. I understand that the returns can be greater, but so are the risks. What should I do to minimise them?

Monday, December 05th 2005

A: The first consideration for anyone looking to enter into a property transaction is to "see a property lawyer first". An experienced property lawyer will have the necessary expertise to guide you through the legal aspects of the transaction from before you sign the contract, and up to and after settlement of your purchase. Quality legal advice at an early stage will help to identify potential problems with the property. It is essential that you undertake a robust "due diligence" investigation of commercial property.

This means checking all aspects of it to establish the "truth" or otherwise of what the vendor has said and whether it is suitable as an investment.

The old common law phrase of caveat emptor (let the buyer beware) applies. It is quite simply a matter of managing the risk. The primary purpose of due diligence is to identify matters that may adversely affect the value of the property.

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Heartland Bank - Online	6.69
SBS FirstHome Combo	6.74
Wairarapa Building Society	6.95
Unity	6.99
Co-operative Bank - First Home Special	7.04
ICBC	7.05
China Construction Bank	7.09
BNZ - Classic	7.24
ASB Bank	7.24
ANZ Special	7.24
TSB Special	7.24

Unity First Home Buyer special	6.45
Heartland Bank - Online	6.45
TSB Special	6.75
Westpac Special	6.75
China Construction Bank	6.75
ASB Bank	6.75
ICBC	6.75
AIA - Go Home Loans	6.75
Kiwibank Special	6.79
Co-operative Bank - Owner Occ	6.79
ANZ Special	6.79

ASB Bank	6.39
Westpac Special	6.39
AIA - Go Home Loans	6.39
China Construction Bank	6.40
ICBC	6.49
SBS Bank Special	6.55
Kiwibank Special	6.55
BNZ - Classic	6.55
Co-operative Bank - Owner Occ	6.55
TSB Special	6.59
Kainga Ora	6.99

SBS FirstHome Combo	6.19
AIA - Back My Build	6.19
ANZ Blueprint to Build	7.39
Credit Union Auckland	7.70
ICBC	7.85
Heartland Bank - Online	7.99
Pepper Money Essential	8.29
Co-operative Bank - Owner Occ	8.40
Co-operative Bank - Standard	8.40
First Credit Union Standard	8.50
Kiwibank	8.50