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March 2011

Archives for March 2011

Commercial Sales Gain Momentum

AuctioAuctioneer's gavelneer's gavel
Around Australia, Commercial clearance rates at auction are now about on par with Residential property — averaging at around 50%.

Victoria seems to be leading the way, with Commercial clearance rates for some types of property approaching 70%.

New South Wales is running about six months behind at? around 60%, with firming yields. And Queensland is probably a further 12 to 18 months away in its recovery. [Read more…]

Is the End of the World Near?

Black Swan Events
With Australia having weathered the global financial crisis, we are now having to cope with the potential after-effects of:

  • The European sovereign debt crisis;
  • The earthquake & tsunami in Japan, with the subsequent nuclear fallout;
  • The Libyan crisis; and locally …
  • Extensive flooding in Queensland and Victoria.

Given all of these so-called “Black Swan” events occurring so close together, certain pundits appear to be jumping to the wrong conclusions.

They are ignoring the fundamentals; and simply encouraging a knee-jerk reaction — driven more by sentiment and (supposedly) an attempt to avoid risk.

Right now, many investment decisions are being based upon incomplete, and often incorrect, information. And this is also being inflamed by sensational headlines in the media.

The Tragedies are Real

Without question, the human pain and suffering in these disasters is beyond a full comprehension — whether it be in Japan, NZ, Libya, Queensland or Victoria.

However, history would suggest the adverse economic effects will be comparatively small and temporary.

In all these circumstances, there may be some short-term decline. But the subsequent rebuilding efforts tend to provide an economic boost, well beyond what would have otherwise occurred.

You only have to look at the Victorian bushfire tragedy of several years ago. As truly devastating as that was … the Victorian economy now leads the rest of Australia in so many areas — both economically and in its relative population growth, compared with other states.

With Japan, its $200 billion rebuilding program will consume an enormous volume of steel — and therefore, create huge demand for Australian iron ore and coking coal. Not to mention, the design and construction opportunities for Australian firms.

Bottom Line: Just step back, and view the fundamentals clearly.

While China remains an important influence, the recent disasters in New Zealand and Japan will also actually impact very favourably upon the Australian economy AND the Commercial property market.

Your competitive advantage will be found in buying Commercial property … while others seem to be frozen to the spot.


Your 12 Buying Criteria

Reaching your Pot of Gold

THE FOLLOWING Buying Criteria are ranked in what most investors consider to be their relative importance.

Tenant Calibre & Lease Term

These two criteria alone could prove to be most important in achieving your Investment Objectives. What you’ll look for is a strong corporate (or government) tenant, with a minimum of a five-year lease term.

With that in place, you’re well on your way to making a successful investment. [Read more…]

Your 8 Investment Objectives

Commercial Buildings

WITH THE Commercial property market now starting to gain some momentum, it might be worthwhile reviewing your current Investment Objectives — simply to ensure they align with your underlying investment strategy.

In formulating that strategy, you may choose to vary the specific order of importance for the following set of Objectives. [Read more…]

More Good News for
Industrial Property

Industrial Sector
The Industrial sector was probably the one most harshly affected by the global financial crisis.

Nobody wanted to expand — being prepared to operate in cramped premises, until a clear picture of economic growth emerged.

However, there has been a growing and now, strong tenant demand reported within the main east-coast cities. [Read more…]

Your Common Property Terms (N-Z)

HERE IS the final segment of your Common Property Terms. It contains definitions for most of the remaining aspects of property you’re likely to come across.

And as you can see, they cover from …

N to Z [Read more…]

Your Common Property Terms (D-M)

FOR EASY reference, I thought the simplest way would be to split these Common Property Terms up into three alphabetic sections.

And so, you can now sift through this next section from …

D to M [Read more…]