16231 Lecture Notes - Lecture 2: Net Asset Value, Precommitment, Legal Personality
Document Summary
Lecture 2 commercial property investment in australia. Ownership structures: freehold (fee simple) total ownership of land and property, leasehold. Usually on a fixed term for a rent. Main use is where government may lease a parcel of land for an extended period: strata. Ownership of a lot" within a property. Body corporate is then set up to run common areas. Will also back developers on projects: occupiers the tenants! Terms of leases are critical when assessing the risk and value of a property. Who invests in property: types of investors and managers: a-reits real estate investment trust, unlisted funds - superannuation, syndicates, private or direct investors. A-reits: used to be referred to lpt"s, highest public profile as they are listed on asx, give investors access to property assets, benefits: Provide access to assets that maybe otherwise out of reach for individual investors. Good for investors who want to diversify. Potential to receive a regular and consistent income stream.
