South Yarra … Amazing!

Location Plan

Location Plan

If you haven’t been there for a while, you’ll be simply astounded at the Commercial transformation going on — between Chapel Street and the South Yarra Station.

9 Yarra Street

9 Yarra Street

Anyway, I’ve just been given access to several newly-tenanted Office Suites at 9 Yarra Street — which I presented to a select group of Clients, only yesterday.

And they’ve started snapping them up.

Since putting the details up on a web page for easy access … two of the Suites have sold. And three more have been placed “Under Reserve”.

And so, if you’re looking to secure a great little investment in the $200,000 to $600,000 price range … there are now only a few left!

Was the RBA Asleep at the Wheel?

In fact, the RBA has been cautious … NOT asleep!

Last week, we covered the statistical anomaly relating to Australia’s low unemployment figure. And that may well have influenced the RBA in holding rates steady last month.

Although, the patchy spending in December and January probably coloured their thinking as well.

Bursting Bubbles

Bursting Bubbles


Nonetheless, you continue to see a surge in home values; and headline inflation is now starting to creep up again. [Read more…]

“How Baby Boomers affect
your Commercial Property”

Last week, you hopefully gained a clearer understanding of the timing (and impact) Baby Boomers will have on Residential property, until around 2025.

Most people probably feel all this would have little or no impact on Commercial property.

And for some of you, that might be true. But I suspect there are many Boomers, where the effect could be quite devastating.

And here is the reason why [Read more…]

What about the Baby-Boomer Effect?

Yesterday, the Federal government released Australia’s third Inter-generational Report.

And about five years ago, I came out with a somewhat startling statement:

“If you haven’t sold your traditional family home by 2010-11 … you had better be prepared to hold it until 2025 — because there simply won’t be a market for it!”

Chatswood ... Sydney

Chatswood … Sydney

And given the recent surge in home sales (particularly in Sydney and Melbourne) over the past 6 months … you would be excused for thinking my prediction might be way off the mark. [Read more…]

Your Opportunities Moving Forward?

There has been much written already about the global financial crisis.

But in layman’s terms, it occurred as a result of capital imbalances occurring throughout the world. And nowhere more so, than in America.

The principal cause can be found with the high levels of US debt-funded consumption. And in order to better understand this distortion, you might care to consider the following figures …
US Share [Read more…]

Biggest Economic Threat For Australia

It might surprise you to hear this, however …

h3. A Strong US Recovery

… would probably be the worst thing to happen for Australia in 2010.

If that occurs, the US Federal Reserve would be forced to quickly raise interest rates, from zero to around 3%. And that would cause the collapse in the Australian dollar from its current level of around US90c.

Up until now, Australia has been shielded from inflationary pressures, with a high dollar holding down the cost of imports.
[Read more…]

Demand Finally Surfaces!

The pent-up demand for housing serves to underline that this downturn is more like the credit squeeze of the mid-1970s, than the recession of the early 1990s.

It’s principally a confidence thing.

Surge in 1st Home-Buyer Activity

Surge in 1st Home-Buyer Activity


However, the recent surge in purchases by first-home buyers confirms that with the encouragement of low interest rates and government hand-outs … the buyers will play their part.

More importantly, the flow-on effect throughout the construction industry will give our economy a much needed lift.

You May be a Doubter … But I say: “Yes, we can!”

The Weekend Financial Review ran several articles, which seemed to echo many of the sentiments contained in my last blog about the Capital City Markets — but perhaps putting things a little more bluntly.

h3. Brisbane

Qeensland DebtMark Ludlow (on page 2) referred to Queensland as having moved from “boom state to gloom state” — because of its heavy reliance on resources. [Read more…]

Some Answers in These Troubled Times

There are a couple of questions on the minds of Commercial Property Investors at the moment.

And they go something like this.
[Read more…]

Household Debt may actually be “Healthy”!

In an “earlier posting”:http://commercialpropertymadeeasy.com/2007/06/26/family-finances-are-being-stretched/, I raised concern over the dramatic increase in household debt — to the point where it now sits at over 150% of household disposable incomes.

As you can appreciate, the major concern has been as to how rising home-mortgage interest rates might cause a flow-on effect for Commercial investors. And this is because a fall in residential prices could adversely impact upon the security for any line-of-credit you may have against your home.
[Read more…]