How Will the Global Scene Impact Commercial Property?

24 April, 2013 by Leave a Comment

The disparity in global Office Yields makes Australian Commercial property very appealing to overseas investors.YOU NEED to look “behind the curtain” … and not allow yourself to become concerned by the recent headlines. Just remember: Media companies need to make sure their newspapers sell.

Last week, share market speculators drew breath rather sharply … as China’s 3-month growth in GDP to March, came in at “just 7.7%”.

True, this was down from the expected 7.9%; but it was still in line with China’s overall growth, throughout 2012.

However, let’s get real: Compared with anywhere else in the world, 7.7% is clearly an enviable figure. [Read more…]

Filed Under: Economic Issues, Global Scene, Investment Opportunity, Market Sectors, Offices, Opportunities 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: , , , , , , , , , , , ,

Does a Solid Sales Increase in February Mean the Retail Sector is Now Back?

10 April, 2013 by Leave a Comment

Strip Centres are still strugglingYOU WILL quickly find that there are two different schools of thought:

  1. After much hibernation, Retail property is set to surge again.
  2. With the high dollar, and growth in online shopping, the Retailing has much catching up to do.

Despite Australia having been mostly sheltered from the global financial crisis, retailers (especially in strip shopping centres) have been doing it rather tough.

Before the GFC, Retail property yields had plummeted. In some cases, as low as 3.5% per annum — with investors clamouring for what they saw as “sexy property”. And they believed values would always increased dramatically. [Read more…]

Filed Under: Economic Issues, Global Scene, Market Sectors, Opportunities, Property Yields, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , , , ,

How Quickly The Mood Has Changed For Commercial Property!

13 March, 2013 by Leave a Comment

Has The Penny Dropped?OVERALL, people appear to have returned from their Christmas break with a renewed sense of confidence — certainly as far as Commercial property is concerned.

In a recent article, I covered the reasons for this change.

However, investors are also being buoyed by the past two weeks of solid economic data — including a welcome boost to Australia’s trade balance, as well as retail turnover increasing by 0.9% during January. [Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector Tagged With: , , , , , , , , , , ,

Commercial Property: Looking Ahead

16 January, 2013 by Leave a Comment

Confidence is now returningTHROUGHOUT the last half of 2012, you would have seen our articles consistently predicting a turn-around in confidence, early in 2013.

And more particularly, we also explained why there would be a rebound in China’s growth — following transition to the new Administration. [Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Interest Rates, Market Sectors, Offices, Opportunities, Property Cycles, Stability

Buying Commercial Property? Make Sure You Choose Wisely

9 January, 2013 by Leave a Comment

Real GDPIN ALAN MITHELL’s article last Saturday (AFR: page 15), he discussed a recent report from the OECD — which outlined the growing pressures upon the Australian economy for structural change.

Apparently, the centre of gravity for global activity is gradually moving.

Centre of Gravity is coming closer to AustraliaAnd as the table shows, this is moving closer to Australia; and will bring with it an increase in … specialisation, innovation, productivity and income.

However, as a Commercial property landlord, you will only continue to be successful if you can quickly identify those businesses benefiting most from what’s occurring.

You have already seen a shift in manufactured goods offshore; as well as the car industry unwisely being subsidised by government. [Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Your Exposure Tagged With: , , , , , , , , , ,

Commercial Property & The Economy … It’s Purely a Confidence Issue!

12 December, 2012 by Leave a Comment

The TrueEconomic Picture

THE REST of the world looks upon Australia with envy. And you only need to scan these graphs to understand why.

It all comes down to a feeling of comparative well-being.

Australians have had it so good, for so long … that the current slower pace somehow makes us feel gloomy — because it’s simply “not normal”.

Meanwhile, most other countries just wish they were in our position. [Read more…]

Filed Under: Economic Issues, Employment, Finance, Global Scene, Industrial Sector, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities, Using Debt Tagged With: , , , , , , , , , ,

More on Industrial Property …

28 November, 2012 by Leave a Comment

ONLY RECENTLY, I flagged the emerging opportunity being provided by Industrial property. But I felt it was important for you to understand the underlying reason for that.

In a nutshell, it comes down to our persistently high dollar.

What?s driving the dollar crazy?

In last weekend’s Financial Review (page 24), Joanna Heath posed the following question:

Can you name Australia’s second-largest export?

She went on to point out that it’s not … coal, gas or wheat. Instead, it is actually Australian Commonwealth Bonds! [Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Interest Rates, Investment Opportunity, Market Sectors, Opportunities Tagged With: , , , , , , , , , , , ,

Are There Genuine Signs of The Long Hibernation Being Over?

31 October, 2012 by Leave a Comment

Emerging from HibernationIN VARIOUS recent articles, I’ve tried to explain how Australia’s underlying fundamentals are actually very solid.

And by most measures, our economy seems to be travelling at close to its full capacity.

However, the contradiction is that Australia’s budget should now be running at a substantial surplus. And the reason it’s not relates to a number of structural issues. [Read more…]

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

Will China’s Growth Pick Up Again?

6 September, 2012 by Leave a Comment

China and Australia have Solid RelationsAND WILL it keep underpinning both Australia AND Commercial property? Well, that really depends upon who it is you’re asking.

Most miners are somewhat guarded; many journalists are painting a gloomy picture; and Labor politicians seem to be arguing among themselves.

So, no wonder most of us are confused.

And whenever the general community is confused … it takes what seems to be the safest route, and simply does NOTHING.

This is the dilemma our economy faces right now.

Let’s peek behind the Chinese Curtain … [Read more…]

Filed Under: Global Scene, Industrial Sector, Investment Objectives, Investment Opportunity, Offices, Opportunities, Retail Sector, Stability, X~Factors Tagged With: , , , , , , , , , , ,

Improved Productivity Always Brings Pain!

23 August, 2012 by Leave a Comment

Sector-by-sector Contributuion to GDPUNFORTUNATELY, you simply can’t avoid experiencing some pain … whenever structural changes occur within the economy.

However, these changes also provide considerable opportunities for the shrewd Commercial property investor. But more on that later. [Read more…]

Filed Under: Economic Issues, Employment, Global Scene, Investment Opportunity, Market Sectors, Offices, Opportunities, Stability Tagged With: , , , , , , , , , ,