Is The Mining Boom Masking a Major Problem for Commercial Property in Queensland and WA?

Queensland & WA will have the greatest amount of Distressed PropertyTHIS RATHER pressing issue appears to be receiving little or no coverage at all.

But if you listen to the insolvency firms, Western Australia is about to become the “hot spot” for distressed property.

And as you can see from the chart, Queensland well and truly holds the the crown at the moment. [Read more…]

Commercial Property Negotiating: The Framework for a Great Deal

Asking these Key Questions will help you succeed as a Negotiator.EVERY NEGOTIATION can be very easily broken down into its component parts … once you understand what is really going on.

Over the next few weeks, I’ll be posing 20 questions — which (when taken together) are intended to help you fully grasp everything involved. [Read more…]

Commercial Property: The Suburban Office Market

The Suburban Office market is currently your best choiceRIGHT NOW, the Sydney suburban market is trending sideways. And that’s rather good news, because the general consensus was it was about to slump.

While its vacancy rate sits at 9.6%, there is little new space coming onto the market over the next couple of years. [Read more…]

Commercial Property: When Time Comes to Sell (Part 2)

stealth

Last week, you explored the various Selling methods available to you — which ones were the preferred, and why.

Plus, you were also given some initial insight into the benefits of using Web (or “Stealth”) Marketing techniques. But how does this differ from traditional marketing for Commercial property?

Traditional Marketing tends to adopt a “scatter gun” approach — which depends heavily upon expensive media advertising and a detailed Information Memorandum.

Whereas, Stealth Marketing is more like using a “laser gun” … focusing on your target market — using a personalised direct-email campaign; PLUS a dedicated website, to explain everything about the Property.

If you’d like, you can find out even more about Stealth Marketing. Meanwhile, you’re probably wondering …

What else should you Expect from your Selling Agent?

  1. Your agent should be able to explain the current state of the market to you in detail. As well as providing a firm estimate of the likely price for your property.
  2. But you’re entitled to expect a whole lot more. And so, by way of a quick checklist … a good selling Agent should also:
  3. Gather and collate all necessary information to ensure purchasers will be fully informed, and capable of making a decision to buy;
  4. Liaise with you and your lawyers, to make sure the documentation is fully complete and correct;
  5. Create a dedicated website (or at least several webpages) for your property — making everything available to prospective buyers, in exchange for their contact details.
  6. Co-ordinate the overall marketing campaign: Mailing out brochures and letters (or preferably, sending out personally-addressed emails, with direct links for the website) to those potential purchasers known to be currently active in the market;
  7. Try to secure editorial coverage within the various media being used;
  8. Qualify and record all the enquiries that are generated throughout the marketing campaign;
  9. Arrange for the various inspections to take place;
  10. Prepare prospective buyers for the actual Auction, or Tender;
  11. Keep you advised as to progress, on at least a weekly basis;
  12. Ensure all preparations are made, so that everything runs smoothly on the day of the Auction, or the close of Tenders;
  13. Conduct the Auction (or open the Tenders with you); and attend to signing of the contracts with the successful purchasers;
  14. Depending upon local requirements, ensure an early release of the deposit;
  15. Follow up with your lawyers to ensure that the documents have been executed to their satisfaction; and
  16. Once the deposit has been released … account to you with the deposit monies, 30 days after the sale — setting everything out in a detailed statement for the sale.

Bottom Line: Unless your selling Agent is proposing to undertake these vital 16 steps on your behalf … then you should be looking elsewhere.

 

Commercial Property Snapshot: Retail Within The Melbourne CBD

LAST TUESDAY, you gained some insights into the changing Retail scene, for Commercial property around Australia.

According to some recent research by JLL & CBRE (BusinessDay: 29 Feb 2012), these trends are clearly starting to emerge within the Melbourne CBD.

The current vacancy rate is hovering at around 1%. And in part, this is due to the Growing number of people living and working within central Melbourne.

However, part of the reason behind this also lies in the recent entry into the market of several major overseas retailers. [Read more…]

Commercial Property: When the Time Comes to Sell … (Part 1)

WHAT YOU need is a strategy to make absolutely sure you obtain the best possible price when you sell.

You need to put your Buyers under CompetitionAnd you do this by creatively targeting investors, developers and potential owner-occupiers — through adopting a broad (yet cost-effective) marketing campaign, which draws out those buyers best suited to your property.

Choosing The Best Method of Sale

The #1 secret for successfully selling any property is to promote the feeling among your prospective buyers that “they could miss out”.

However, this is difficult to achieve with a straight, Private Sale. In fact, this method generally takes far longer to achieve a result — as it fails to create any sense of urgency in a buyer’s mind. [Read more…]

Commercial Property: The Changing Retail Scene

<span class=THERE WAS an article in The Age last Saturday (BusinessDay) — which provided some fascinating insights into Australia’s retail scene.

Based upon GPT’s national portfolio, some interesting long-term trends are taking shape. And while GPT’s overall earnings actually rose by 7% over the past year … it required a fair amount of “fancy footwork” to achieve that. [Read more…]

12 Fundamentals You Need to Follow … When Buying Commercial Property

There are 12 Rules you need to follow to successAS YOU WILL appreciate, being able to sleep at night is one of the key objectives for any Commercial property investor.

And that’s what many property investors refer to as staying below your “Threshold of Insomnia”.

There can be several things that might cause you to lose sleep. One is over-borrowing; and the others are making a poor assessment of the market and the property itself. [Read more…]

Commercial Property to Benefit From Structural Changes Within the Economy

Industry Restructure is necessary for Australia's long-term growth.IN CASE you missed the lead story in last Friday’s Financial Review … the Treasury secretary (Martin Parkinson) was outspokenly critical of the government’s recent handouts to the car industry.

And more particularly, given the recent strong growth in the unemployment figures.

In his view, taxpayers ought not be subsidising so-called “strategic industries” — when these represent inevitable structural changes, which need to occur in order to make Australia more productive in the long-term. [Read more…]

How Commercial Property Investors Benefitted From The Past 7 Days?

The Reserve Bank believes things are on the up.LAST TUESDAY, the RBA left the cash rate on hold — much to the surprise of most pundits. And yet, only the week before, that’s exactly what I suggest would happened.

You might also remember I suggested that you lock in a fixed rate mortgage — because it was then about 1% below the variable mortgage rate.

Many scoffed, and said that rates will continue to come down. Well, the past 7 days have certainly put paid to that theory — with the big 4 Banks raising their rates, quite out of step with the RBA. [Read more…]

Your Success in Commercial Property Begins With The Correct “Investment Vehicle”

Your need to choose the right Investment Vehicle from the outset

BEFORE YOU purchase your next Commercial property, you do need to take some advice on which purchasing vehicle is right for you — because it’s definitely not ‘one size fits all’.

Tax Considerations

The Australian Tax Office is quite happy for you to arrange your affairs so as to minimise the tax you pay. In other words, it is quite legal for you to avoid tax — you simply cannot evade it. [Read more…]