How Will the Global Scene Impact Commercial Property?

The disparity in global Office Yields makes Australian Commercial property very appealing to overseas investors.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…]

Commercial Property: Getting The Numbers Right

Getting The Numbers RightOVER THE PAST few weeks … we’ve spent some time talking about the Anatomy of a Commercial Property Dealhow to to find Top Commercial properties and … the need for proper Due Diligence.

However, it’s probably worth showing you how to establish what funds you actually have available to invest upfront.

It’s certainly not a complicated process — but a vital one , nonetheless.

You see, many investors tend to overestimate (and will often even underestimate) the amount of the funds they may have available. And that immediately impacts upon the value of the property you can acquire. [Read more…]

How Do You Find Top Commercial Property Deals?

Being creative will deliver you Top Commercial property dealsMOST INVESTORS believe keeping an eye on the daily media will provide you with the best opportunities.

Others will mainly focus upon distressed sales like “Mortgagees’ Auctions”.

However, by doing that, you are effectively pitting yourself against considerable competition.

And while the property itself may be First-class … you are unlikely to end up with a “top deal”. [Read more…]

How Quickly The Mood Has Changed For Commercial Property!

Has The Penny Dropped?OVERALL, people appear to have returned from their Christmas break with a renewed sense of confidence — certainly as far as Commercial property is concerned.

In a recent article, I covered the reasons for this change.

However, investors are also being buoyed by the past two weeks of solid economic data — including a welcome boost to Australia’s trade balance, as well as retail turnover increasing by 0.9% during January. [Read more…]

How Good a Commercial Property Investor Are You?

InvestSOME WOULD-BE investors never get around to taking the plunge into Commercial property.

They certainly know quite a lot, because they read plenty of books and regularly attend seminars. But even so, they remain what are affectionately called “Armchair Investors”.

How to Cure Procrastination

There is a certain hesitancy that sometimes accompanies the transition from Residential to Commercial property investing. [Read more…]

The Anatomy of a Commercial Property Deal

SO LET’S GO right back to basics … and just break down a Commercial property investment into its fundamental components.

You see, very few investors seem to spend enough time to fully understand what’s involved.

>>>>>Your Investment = Equity + Debt + Ideas + Time

And you may care to explore each of these aspects in a little more detail. [Read more…]

Commercial Property Investing: How to Uncover a Good Deal

Discovering a Good DealIT’S TRUE … every deal will always be different. But that does not mean you can’t use a series of simple measures, to help you sift the “wheat from the chaff”!

Only then, are those properties entitled to make it through to the next stage of detailed analysis.
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How to Quickly Shortlist Your Properties [Read more…]

Why The RBA Held Fast on Interest Rates … And How That Affects Commercial Property Investors

Interest rates on holdSOME PUNDITS seemed to be genuinely confused, and others even disappointed with?the RBA’s decision at its last meeting.

However, those closely studying what’s really been happening over the past 6 to 9 months were not surprised in the slightest.

Producer Price IndexSure, a weaker Producer Price index (and a benign underlying inflation at 2.3%) certainly gave the RBA plenty of flexibility. [Read more…]

Top-End Commercial Property in Demand

Top-end Offices now in DemandOVER THE PAST several months, I have been recommending you refrain from trying to pick the bottom of the Commercial property market.

And certainly not wait for overwhelming evidence of prices being “on the up”.

Anyway, last week you were probably given the best confirmation you needed in an article by Carolyn Cummins (The Age, BusinessDay: 24 Jan 2013).

In the article, she talked about high net-worth investors having now joined institutional investors & sovereign funds, at the top end of the Commercial property market.

Driven by lower interest rates, demand has increased for health-care properties and large-scale shopping centres; plus traditional offices and industrial property. [Read more…]

Buying Commercial Property? Make Sure You Choose Wisely

Real GDPIN ALAN MITHELL’s article last Saturday (AFR: page 15), he discussed a recent report from the OECD — which outlined the growing pressures upon the Australian economy for structural change.

Apparently, the centre of gravity for global activity is gradually moving.

Centre of Gravity is coming closer to AustraliaAnd as the table shows, this is moving closer to Australia; and will bring with it an increase in … specialisation, innovation, productivity and income.

However, as a Commercial property landlord, you will only continue to be successful if you can quickly identify those businesses benefiting most from what’s occurring.

You have already seen a shift in manufactured goods offshore; as well as the car industry unwisely being subsidised by government. [Read more…]

Commercial Property & The Economy … It’s Purely a Confidence Issue!

The TrueEconomic Picture

THE REST of the world looks upon Australia with envy. And you only need to scan these graphs to understand why.

It all comes down to a feeling of comparative well-being.

Australians have had it so good, for so long … that the current slower pace somehow makes us feel gloomy — because it’s simply “not normal”.

Meanwhile, most other countries just wish they were in our position. [Read more…]