Insider Tips to Help You Discover How to Succeed with Commercial Property
Growth will continue.
Sure, the Australian economy may have grown by only 0.2% in the September quarter. And retail sales might have actually fallen by 1.1% for October.
However, the overwhelming consensus is that this is merely an aberration.
And the underlying growth projections remain very favourable — with the full effect of the mining boom having resumed, due to be felt by mid-2011.
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Savills International has just released a report on the current level of Office supply within the Melbourne CBD.
Melbourne CBD Office Vacancies
The amount of Secondary Office space has also fallen from 108 floors to 89, over the same period.
And underpinning all of this is the level of enquiry, which has jumped by 300% over the last six months.
Which, when you think about it, is quite an achievement in itself!
About a fortnight ago,Treasurer Wayne Swan was crowing about the Labor government’s achievements during his Mid-Year Outlook.
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Just take a look around your capital city CBD. And tell me, how many cranes to currently see on the skyline?
Sydney Skyline
Most people seemed taken by surprise, when the RBA chose to raise the cash rate to 4.75% on Cup Day this week.
However, with Oaks Day being held yesterday, I thought today would be better timing for this post.
Price Pressures
However, with industry facing capacity constraints and the mining boom heading towards previous levels … inflation is poised to accelerate during the December quarter, as wages start to rise.
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Balance
And the rising $A is certainly making its job easier, by generally cooling activity.
Work Allocation
In several recent postings, I have given you an overview of where Australia’s economy currently sits within the overall global scene.
The Worm Turns
The IMF has recently trimmed its overall global forecast — down to 4.2% from 4.3%, for 2011.
The emerging and developing economies are tipped to grow by 6.4% (with China’s growth being over 9%).
Whereas, the various advanced economies are expected to grow by a subdued 2.2%, on average.
However, any double-dip recession is considered most unlikely — as investment and domestic consumption has replaced the building up of inventories.
According to the IMF: “Investment in machinery and equipment is already showing strength in a number of advanced economies.”
Nonetheless, spending and investment in most advanced economies will be constrained by households replenishing their savings; and banks remaining reluctant to lend freely to businesses. Plus, the US housing market still languishes.
Overall, the lack of business investment (and therefore employment growth) will adversely impact on tax revenues. And thereby, make government debt reduction programs a slow process.
On all counts, Australia will continue to enjoy solid growth — relative to other advanced economies. And this will provide ongoing pressure for interest rates to rise, over the next three years.
All the more reason to lock in your interest rates long-term … for any Commercial property investments you intend to make.
Pick up any newspaper, and you’ll find most commentators saying the Resources boom is back on once again.
Also, people are pointing to China as our guiding light going forward.
But is this really true? And if so, why?
Here’s a short Video giving you a quick insight into whether there really is any substance to what we’re being told.
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Office Vacancy rates around Australia are falling — albeit faster in some capital cities, than others.
The chart below shows you where things currently stand.
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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.
