Our Process
Your investment journey in 5 simple steps.
Understand
& Engage
Partner with us to help you find your next investment.
Shortlist
& Select
Multiple properties presented that meet your requirements.
Negotiate
& Contract
Negotiate price and terms for selected property and obtain a conditional contract.
Due
Diligence
Investigations and inspections to confirm purchase prior to going ‘unconditional’.
Settle &
Celebrate
Settle the property and then celebrate your success.
Interested to know more? E-mail or book a free call with the team to understand how we can help.
Testimonials
Stage 1
Understand & Engage
- In our initial discussion we will focus on understanding your objectives and providing more detail about how we can help you.
- Should there be a good fit you will engage us formally under a Buyers Agency Agreement which allows us to negotiate properties on your behalf.
Shortlist & Select
- Once you come on board our job is to shortlist some of the current opportunities on the market and present them to you.
- This will enable you to further refine your objectives based on understanding what is available and the tangible advantages and disadvantages of specific properties.
- Most likely we will refine our search criteria based on this feedback and proceed to present additional properties for consideration.
- When we find a property that meets all the objectives within the constraints of what is available in the market we will proceed to an offer.
Stage 2
Stage 3
Negotiate & Contract
- With the property selected we will begin to negotiate on your behalf.
- We will work to understand the Vendor’s needs and try to create a win-win situation.
- The offer will be written subject to a due diligence condition which enables us to investigate the property further with more time, and allows us to pull out of the contract should we find anything unusual with the property.
- If the property is subject to finance this will be a separate condition.
Due Diligence
- When the property is under a conditional contract we will get to work to thoroughly inspect the property and make sure everything is in order.
- The inspections will likely include structural, pest and electrical inspections and in some cases other specialised inspections (such as asbestos and contamination).
- We will manage this process and keep you informed of the results or any concerns that arise as we go.
- In parallel to structural inspections we normally proceed with a legal review of the leases and you will progress the finance application.
- All of the DD investigations will be summarised in a report along with details on comparable property sales and leasing details.
- If you decide to proceed the contract then becomes ‘unconditional’.
Stage 4
Stage 5
Settle & Celebrate
- We will work with all parties to see that the property proceeds to settlement.
- Frequently this will include some elements of work that we identify in the DD process that we will require the vendor to complete during this period, which we will seek verification.
- We will also work with the broker/financier and settlement agent to make sure that funds are available for settlement.
- Once the property has settled it is time for a celebration.
Interested to know more? E-mail or book a free call with the team to understand how we can help.
FAQ
Q. Why would somebody consider commercial property for an investment?
There are several reasons why someone might consider investing in commercial property:
- Potential for higher returns: Generally speaking commercial properties generate higher rental yields than residential properties.
- Security of long leases: Some assets come with long leases (5 yrs or more) which provide security of income for long periods.
- Tenants pay maintenance: Many commercial leases pass on the costs of maintenance to the tenant meaning that the quoted net rent is what is paid to the owner after expenses (excluding capital works which are normally the owner's responsibility).
- Tax benefits: Commercial property owners, like residential property owners, benefit from tax advantages through depreciation, but frequently these are greater for commercial properties because the buildings comprise a higher percentage of the purchase price.
- Portfolio diversification: Investing in commercial property can help diversify your investment portfolio and reduce risk.
- Potential for capital appreciation: Commercial property values can appreciate over time, especially if the property is located in a high-demand area.
Q: What are the risks of investing in commercial property?
There are several key risks to consider when buying commercial property:
- Market risk: The value of commercial property can be influenced by changes in the economy, such as shifts in supply and demand or interest rates.
- Tenant risk: The success of commercial property investment is largely dependent on the tenants who occupy the property. If a tenant defaults on rent or vacates the property, the owner may experience loss of income, which can impact the property's value.
- Liquidity risk: Commercial property is generally less liquid than other asset classes, such as stocks or bonds. It can take longer to sell a commercial property, which can impact the ability to access funds in a timely manner.
Q. Who typically uses a Buyers Agent to assist with buying commercial property?
- Novice investors - those that are not familiar with commercial property markets, leases and values, and those that do not know how to complete technical due diligence to determine whether a property is a good investmen.
- Experienced residential investors / new commercial investors - many experienced residential investors have built up significant equity in their portfolios but are unable to continue to grow it because of serviceability requirements. Including high yielding commercial properties can allow the portfolio to grow whilst adding valuable income to service additional debt, or pay down existing debt.
- Time poor investors - to understand whether a property represents good value requires an intimate understanding of the market and previous transactions which takes time to acquire. Many investors prefer to outsource this to Buyer’s agents who are in the market on a daily basis and can make quicker decisions about a property’s value. This is particularly important in heated markets where properties can go under contract in days or weeks.
- High net worth investors - similar to the above, many high net worth investors and Family Offices elect to engage professionals to help them acquire assets.
Q. In which areas does PCBA buy property?
We are active in the Perth markets as well as regional Western Australia.
Q. Why do you only consider Western Australia?
We are a small agency and believe that we can best serve our clients by focussing our efforts in our home state where we are most familiar. By restricting our search area we can understand our local markets more intimately and that means that we can buy better for our clients.
Q. How important is it to visit the property?
- It is possible to buy a property without visiting it, and indeed we know that several agencies buy interstate without visiting the property, and they rely on 3rd party reports for due diligence.
- Our philosophy is that we should visit every property that we buy as 3rd party reports do not provide a feel for the suburb, who the neighboring tenants are, and what other developments may be going on in the area.
- Visiting the property also allows for ad-hoc discussions with the tenant, and some of the general staff who may reveal more about the property and their intentions for the future than would otherwise be volunteer, and to identify upsides which may have otherwise been missed.
Q. How much capital does one need to invest in commercial property?
- Commercial property loans generally have a lower loan to value ratio (LVR) than residential lending. Typically speaking, potential buyers need ~ 30% in equity plus 5% to cover costs. So for a $1M property an investor would need $350k to complete the transaction.
- Notwithstanding that we are aware of some lenders who will look at 80% LVR in some instances.
