.
WHERE ARE WE right now? And what actually determines the Cycles for each sector?
As it happens, most people believe every sector is quickly affected by interest rate movements. Whereas, that’s not strictly true.
And where interest rates do have an effect … the actual timing of that also varies. [Read more…]
IN PART 1, we gave you some advice if you are deciding whether or not to fix your loan.
Today, we continue where we left of with three guidelines to help you avoid a few more common pitfalls when it comes to fixing a loan. [Read more…]
.
THE PROPERTY COUNCIL of Australia recently released its latest survey — for the six months to January 2013.
It reports that the national Vacancy Rate for CBD offices has increased slightly to 10.4%. However, that hardly tells the whole story. [Read more…]
INTEREST RATES REMAIN at historically low levels. And the competition for business between banks and non-bank lenders is fierce.
As a result, you can find some very attractive fixed rate options in the market at the moment.
However, if you are considering fixing an existing loan or taking out a new fixed loan, you must understand some fundamental rules that govern these loans.
The following guidelines will help you structure your fixed loans to provide the most benefits for both your residential and commercial investments. [Read more…]
.
COMMERCIAL PROPERTY stands to benefit from the recent improved business trading figures — which have soared to a 2-year high. And these now fall into line with the NAB Survey’s confidence levels.
As such, many forecasters believe these latest figures (together with the growth in house prices over the past 12 months) now reflect the underlying strength of Australia’s post-mining economy.
Therefore, further interest rate reductions expected by the RBA are unlikely to occur any time soon — if at all. [Read more…]
Part 2: Proper Loan Structuring can give you Protection.
LAST TIME (in Part 1), you discovered why the banks should not be allowed to call the shots. And perhaps a couple more Case Studies will help to further explain that.
He was a very successful property investor who had an impressive portfolio, consisting of several residential and commercial properties.
Kevin was able to build this portfolio through a mixture of a good knowledge of the market, savvy negotiating skills, a high-income job with a resources company and, it has to be said, some luck in picking the trends.
Kevin’s problem was that he wanted to retire early — which is something someone of his net worth should easily be able to do. But he made one major mistake. [Read more…]
SHOULD 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?
SO LET’S GO right back to basics … and just break down a Commercial property investment into its fundamental components.
You see, very few investors seem to spend enough time to fully understand what’s involved.
And you may care to explore each of these aspects in a little more detail. [Read more…]
SOME PUNDITS seemed to be genuinely confused, and others even disappointed with?the RBA’s decision at its last meeting.
However, those closely studying what’s really been happening over the past 6 to 9 months were not surprised in the slightest.
Sure, a weaker Producer Price index (and a benign underlying inflation at 2.3%) certainly gave the RBA plenty of flexibility. [Read more…]
OVER THE PAST several months, I have been recommending you refrain from trying to pick the bottom of the Commercial property market.
And certainly not wait for overwhelming evidence of prices being “on the up”.
Anyway, last week you were probably given the best confirmation you needed in an article by Carolyn Cummins (The Age, BusinessDay: 24 Jan 2013).
In the article, she talked about high net-worth investors having now joined institutional investors & sovereign funds, at the top end of the Commercial property market.
Driven by lower interest rates, demand has increased for health-care properties and large-scale shopping centres; plus traditional offices and industrial property. [Read more…]
WITH THE PROPER guidance, Commercial property will prove to be a very rewarding investment — and in different ways.
However, there are several Golden Rules you really should keep in mind. [Read more…]
