Archives for July 2012

How to Validate Your Commercial Property Purchase

Carrying out proper Due Dilignce is vitalMANY PEOPLE make the mistake of carrying out the due diligence study BEFORE they acquire their commercial properties.

This can end up becoming a very expensive process — because you can often miss out on the property, whenever someone else snaps it up, before you complete your study.

Therefore, the secret lies in ensuring you negotiate a deal — where your due diligence occurs AFTER you have tied up the property, under a binding contract of sale. [Read more…]

Confirmation That Commercial Property is Trending Up

A-REITs are a good gauge to where Commercial Property is headingWHILE EVERYONE seems to agree that the residential market is currently moving sideways, investors often find it difficult to gauge how direct investment into Commercial property is really travelling.

However, perhaps the best gauge is to take a look at what the share market thinks about A-REITs (Australian Real Estate Investment Trusts).

Generally, these yields tend to operate at about 1.5% to 2% below direct investment into property. Nonetheless, they can be a great indicator of where the present trend is heading. [Read more…]

Australia, the Global Economy and Commercial Property

GERRY HARVEY appeared to sum it up fairly well in a recent interview:
“It was unusual to have such a poor sentiment at a time when Australia’s economy was relatively strong compared to America and some countries in Europe.”

Overseas Property Investors are currently very active Harvey feels Australia has an economy regarded as strong by outsiders. And yet there is a total lack of confidence, and businesses are therefore suffering.

Overseas investors are actively targeting Australian Commercial Property — accounting for around half of all sales of over $30 million. Whereas, local investors remain hesitant. [Read more…]

Retailing Set to Rebound in 2013

THE FIRST half of 2012 has been rather dismal for retailers. Figures coming out of the ABS tend to confirm anecdotal evidence that retailing is doing it tough.

And none more so than department stores, fashion and electronics. Whereas, food and entertainment remain the only bright spots. [Read more…]