Insider Tips to Help You Discover How to Succeed with Commercial Property
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THE ANSWER is both Yes and No … depending upon which country you live in.
Last weekend’s Financial Review reported an analysis by Oxford Economics, which predicted the likely effect upon GDP during 2015-16 … of oil being at $US40 Vs. $US84 per barrel.
And a quick summary of that is included over on the right. [Read more…]
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OFFICE VACANCY RATES have lept towards 15% in Brisbane, Darwin, Canberra, Adelaide and Perth. And this takes the national average to 12.4%, as an overall vacancy level.
However, businesses are now leasing space once again in both Sydney and Melbourne — where their vacancy rates are currently hovering around 10%, according to Jones Lang LaSalle. [Read more…]
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In simple terms, the answer is … both indirectly and indirectly.
General consensus is that our dollar should ideally be trading at around US85 cents. And that would provide a balance between encouraging non-resource export businesses, while not adding unwanted inflationary pressure.
The RBA could achieve this simply by lowering the official interest rate. However, that would then fuel even more local borrowing — especially within the residential property market. [Read more…]
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HAVE YOU NOTICED how people are generally now acting in a far more positive manner. And that’s simply because they are starting to feel “wealthy” again. [Read more…]
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FURTHER EVIDENCE of an underlying strength in the Commercial property market is now provided by the latest IPD/Property Council index.
During 2013, you saw investors (both local and overseas) stride out from the shadows of the Global Financial Crisis. And as this graph confirms, every sector has displayed a healthy improvement in selling yields. [Read more…]
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COMMERCIAL PROPERTY stands to benefit from the recent improved business trading figures — which have soared to a 2-year high. And these now fall into line with the NAB Survey’s confidence levels.
As such, many forecasters believe these latest figures (together with the growth in house prices over the past 12 months) now reflect the underlying strength of Australia’s post-mining economy.
Therefore, further interest rate reductions expected by the RBA are unlikely to occur any time soon — if at all. [Read more…]
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THIS CHART APPEARED as part of a recent article in the Financial Review, by Mercedes Ruhl (30 October, page 41).
The article reassured investors that the anticipated short-term surge in sublease space (within Australia’s CBD Office markets) has simply not eventuated.
“Sublease space spikes at times when the economy is weak and business confidence is low because companies are restructuring and downsizing.”
Furthermore, the article suggests the overall amount of sublease space is expected to fall sharply over the next few months — following the post-election improvement in business confidence.
And of all the capital cities, the CBRE research shows Melbourne has provided the greatest improvement over the past year. [Read more…]
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EVER SINCE Julia Gillard announced the September election in February … the ensuring political hiatus has meant almost everything (including our thinking) has simply been moving sideways.
Neither up, nor down … just drifting!
And that is completely understandable — because, when uncertainty reigns … people tend to do nothing.
Part 1: Don’t be easily Swayed by your Bank.
A COMMON piece of advice given by mortgage brokers to Commercial property investors — at least, by astute brokers — is to keep securities for each loan separate. In other words, any form of Cross Collaterization (as it’s known) is to be avoided at all costs.
Put simply, it is the combining of one mortgage registered against two or more properties (or sometimes even your business) as security. [Read more…]
YOU NEED to look “behind the curtain” … and not allow yourself to become concerned by the recent headlines. Just remember: Media companies need to make sure their newspapers sell.
Last week, share market speculators drew breath rather sharply … as China’s 3-month growth in GDP to March, came in at “just 7.7%”.
True, this was down from the expected 7.9%; but it was still in line with China’s overall growth, throughout 2012.
However, let’s get real: Compared with anywhere else in the world, 7.7% is clearly an enviable figure. [Read more…]
SHOULD YOU be fixing the interest rate for the term of your investment loan … or simply running with the best variable rate?
Lurking behind that question is another concern: Will interest rates fall any further; and if so, by how much?
WITH EVERY NEGOTIATION, you always need to be thinking on your feet. And here are several simple Tips to help you do just that.
WHEN YOU EMBARK on your journey as a property investor, it can be overwhelming – with a flood of information and diverse opinions. To help simplify the process, here are five essential tips for new (and seasoned) investors.
IT DOES NOT MATTER whether you’re an investor or an owner-occupier, there are several important factors to consider when purchasing a commercial property to ensure you make the right choice.
In a previous article, I shared a handy App to assist you in shortlisting potential properties. If you haven’t already downloaded it, simply click on the HiReturn Filter over on the right, to install it on your tablet or mobile device.
THERE IS A BELIEF among many experts that a surge in the stock market typically precedes a recovery in the commercial property market by about six months. And the start of this year saw equity markets gaining some momentum.
I HAVE BEEN ASKED countless times about the secrets to a successful negotiation. And I want to share with you the key elements to help make your negotiations effective.
But first, just watch this short video to gain a quick understanding of these three essential elements that form the foundation of every negotiation.
If you’re new to investing, you might be wondering if it’s possible to manage your own commercial property. The short answer is “yes”, but only if you know what you’re doing.
It’s important to note that owning a commercial property comes with certain legal responsibilities, particularly when it comes to compliance with Essential Services requirements under current Building Regulations.
The current trends in the business have made it clear that office landlords have to cater to the needs and preferences of their tenants. Building owners and managers (who understand and meet these demands) will be able to command higher rents and reduce vacancy rates.
To expand on this, here are four key tips to help attract quality tenants.
