Never Cross Collateralize Your Loan Arrangements

13 June, 2013 by Leave a Comment

Cross-Collateralizing
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.

So, just what is Cross Collaterization; and why is it so bad?

Put simply, it is the combining of one mortgage registered against two or more properties (or sometimes even your business) as security. [Read more…]

Filed Under: *Expert Panel, Economic Issues, Finance, Global Scene, Industrial Sector, Market Sectors, Offices, Retail Sector Tagged With: , , , , , , , , , , , ,

Commercial Property: The Interest Rate Dilemma

17 April, 2013 by Leave a Comment

Interest-RatesSHOULD 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?

The Case FOR a further Interest Rate Cut [Read more…]

Filed Under: Economic Issues, Finance, Global Scene, Interest Rates, Opportunities, Stability, Using Debt, Your Exposure Tagged With: , , , , , , , , , , , ,

What Will Happen to Interest Rates
When The RBA Meets Next Week?

31 January, 2012 by Leave a Comment

THE GENERAL consensus seems to be that the RBA will further reduce rates by 25 basis points. But can this view be fully justified; and what does all this mean for Commercial property investors?

The RBA faces a real DilemmaMost pundits would point to the recent CPI figures and say “Yes”! And on the surface, an underlying inflation rate of 2.5% per annum is plumb in the middle of the RBA’s stated target zone.

Yet despite what seems to be a rather hesitant mood by consumers, inflation in the service sector actually surged by massive 4.4% per annum. And some other sectors (not affected by overseas competition) also finished the year strongly, growing by 3.9% per annum. [Read more…]

Filed Under: Economic Issues, Finance, Global Scene, Interest Rates, Investment Opportunity, Offices, Opportunities Tagged With: , , , , , , , , , , , , , , ,

Your Handy Economic Clock

27 November, 2009 by Leave a Comment

Over the years, you have probably seen various economic clocks explaining the different phases, and their relative timing.

Economic Clock

Economic Clock

Anyway, I came across this rather useful one the other day.

As you’ll see, it is actually a “Multi-asset Investment Clock” — in that you have all the sectors displayed together: Shares, Property, Resources and Interest rates.

Furthermore, if you click on it … you’ll see the clock confirms Australia is midway through its Recovery phase.

h3. And the timing for Commercial property? [Read more…]

Filed Under: Economic Issues, Interest Rates, Offices, Property Cycles, Your Exposure Tagged With: , , , , , , , , , , , , ,

Recognise the Investment Opportunities …

12 November, 2008 by Leave a Comment

Anecdotal evidence suggests that consumers are cutting back on their spending around Australia. And it’s likely that luxury items and overseas travel will be the most affected.

The Flight to ValueA recent article in The Age expounded “The Flight to Value” — where Australian Property Monitors reported a 24% drop in the median price for Toorak Homes, in the 6 months to September.
[Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates, Investment Opportunity, Property Cycles, Property Yields, Retail Sector, Using Debt, Your Exposure Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Some Answers in These Troubled Times

15 October, 2008 by Leave a Comment

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

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

Filed Under: Economic Issues, Global Scene, Interest Rates, Investment Opportunity, Property Cycles, Residential vs Commercial, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , , , ,

Will there be an Office Market Collapse?

12 August, 2008 by Leave a Comment

According to the recent Property Council (PCA) report in the Financial Review (AFR) … the 6 months to June saw overall demand for offices fall around Australia — as business confidence has gradually waned throughout the world.
[Read more…]

Filed Under: Global Scene, Offices, Property Cycles, Your Exposure Tagged With: ,

Trying to Make Sense of Things?

23 January, 2008 by Leave a Comment

There has been much made of the poor US Retail Sales Data for December.

However, the figures were only down 0.4% on November. The most likely explanation being that some early Christmas shopping occurred November; and the increase in gift-card sales will not come through until early in 2008.

Clearly, the Sub-prime issues are having some effect. But, if you follow HS Dent at all — their view is that … “a short, mild recession is indeed likely, and we are arguably already in the middle of it.” (Update: Wednesday 16 January 2008).
[Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates, Your Exposure Tagged With:

How to Live with a Labor Government!

26 November, 2007 by Leave a Comment

Will things really change all that much, now that Australia has wall-to-wall Labor governments across the country?

You’d better believe it!
[Read more…]

Filed Under: Economic Issues, Industrial Sector, Investment Objectives, Offices, Property Cycles, Retail Sector, Your Exposure Tagged With: , , , , , ,