Insider Tips to Help You Discover How to Succeed with Commercial Property
WILL COMMERCIAL property investors and businesses be starved of ready funds during 2012?
The banks seemed to be protesting about the increased cost of offshore borrowing. And using that as their excuse for not wanting to pass on any future RBA rate reductions in full.
But are they really telling you the whole truth? [Read more…]
At last Friday’s AGM, Mike Smith told the ANZ shareholders he was optimistic about the Australian economy … due to its proximity to fast-growing Asia.
In China, the economy grew at 9% over the year. And while many commentators talk about the risks to growth in China, I have been there regularly this year and I am confident about the ability of the Chinese government to manage inflationary pressures and managed the shift from export-led growth, to growth based on more internal demand. [Read more…]
ALL YOU need is a sprinkling of confidence … with an understanding that things are not as bad as you read in many newspapers.
For some time now, I have been trying to explain how the underlying fundamentals for Australia’s economy and Commercial property are strong.
And a recent AFR headline Recruitment boom bucks the trend (9 Dec 2011, page 41) now confirms that our major law firms are “in the midst of a hiring spree”.
However, if you still need some more convincing of Australia’s well-being, just take a look at these two graphs. [Read more…]
BANKS have a variety of ways of analysing a Commercial property; but there are a few guidelines they all tend to use.
For them, the most important number is the property’s Net Operating Income — which is basically rental minus expenses. As simple as that may seem, the calculation can vary dramatically from lender to lender.
Calculating the Net Operating Income is fairly straightforward. [Read more…]
LAST week, The Australian newspaper invited three Commercial property experts to respond to the following question:
If China’s growth story begins to peter out, what will be the impact on Australia’s commercial property market?
Those experts included … Greg Marr (MD of DTZ), Tony Crabb (Research Head of Savills), together with me (as CEO of Properly Edge Australia).
And you can read all three responses, which appeared in Saturday’s Weekend Australian [Commercial Property 3]. What I’ve included here below is my contribution to that analysis … [Read more…]
ACCORDING to the Australian Retailers Association, its members are projecting $39.5 billion in sales from mid-November until Christmas — reflecting an overall increase of just 2% on last year.
Many shoppers still remain extremely hesitant, despite the RBA’s recent interest rate reduction.
Although, with household savings at record levels … people may simply be holding back on their main splurge splurge, until the post-Christmas sales. [Read more…]
The underlying fundamentals for Australia are strong.
All that’s needed is a lift in the general confidence level, for our economy to really take off.
Therefore, the trick is … not to be caught by surprise when it does! [Read more…]
The Queensland economy may be slow to recover from all its natural disasters. But it’s Industrial property sector has been quick out of the blocks.
The boom in Queensland gas now has Brisbane with the lowest vacancy rate for Industrial property.
Next comes Melbourne — with Sydney well back in 3rd place, according to a recent survey by Knight Frank.
And increasing demand will put further upwards pressure on rentals … thereby, encouraging more developers into the market. [Read more…]
Last week’s inflation figures were certainly much better than expected.
As such, there had been considerable political pressure placed on the RBA from by the government to cut interest rates this week.
Retailers were virtually pleading with the RBA to do so. Plus, homeowners were also looking for some relief in the run up to Christmas.
However, this is probably the last interest rate cut by the RBA for quite some time. To understand why, you need to cast your mind back to when the GFC began in 2008.
At the time, business investment was falling.
This is unlikely to occur from now on — because planned mining investment (at $430 billion) is three times greater than in 2008, representing about a third of Australian’s GDP.
And overall, Australia is said to have around $900 billion of business investment in the pipeline.
Furthermore, our main trading partner (China) is now far less dependent upon Western countries for its growth.
In 2008, China’s 12% per annum growth in GDP reflected a 3% to 4% component of exports to the West. While this year’s 9.5% growth in GDP was basically driven by domestic demand — with virtually no exports involved.
Overall, there is said to be around $900 billion of business investment in the pipeline. Add to that the improved stability of Australian banks, with their reduced offshore exposure and improved domestic deposits. Plus, an increase in the Tier 1 capital ratios.
Finally you also need to remember the RBA’s cash rate has now fallen from 7.25% in 2008 to its current level of 4.5% today.
Bottom Line: Apart from the current turmoil in Europe, Australia’s underlying fundamentals are solid. And these augur well for strong growth in Commercial property over the next 5 years.
To reduce interest rates any further would only serve to artificially inflate asset prices — rather than allow the market to grow organically … based upon genuine, sustainable demand.
One of the main attractions of investing in Commercial Property is its security.
Unlike residential property … Commercial Property is generally still there performing for you, if the economy does slow down.
However, when the economy is strong, Commercial Property grows in value and provides you with a steady income.
Anyway, for those of you starting out … here’s a list of the benefits you’ll enjoy from successful Commercial property investing. [Read more…]
In last week’s article, you read a general overview of the Retail sector … and some of the issues currently confronting traders.
Let’s now take a quick look at three of the capital cities. [Read more…]
WITH EVERY NEGOTIATION, you always need to be thinking on your feet. And here are several simple Tips to help you do just that.
WHEN YOU EMBARK on your journey as a property investor, it can be overwhelming – with a flood of information and diverse opinions. To help simplify the process, here are five essential tips for new (and seasoned) investors.
IT DOES NOT MATTER whether you’re an investor or an owner-occupier, there are several important factors to consider when purchasing a commercial property to ensure you make the right choice.
In a previous article, I shared a handy App to assist you in shortlisting potential properties. If you haven’t already downloaded it, simply click on the HiReturn Filter over on the right, to install it on your tablet or mobile device.
THERE IS A BELIEF among many experts that a surge in the stock market typically precedes a recovery in the commercial property market by about six months. And the start of this year saw equity markets gaining some momentum.
I HAVE BEEN ASKED countless times about the secrets to a successful negotiation. And I want to share with you the key elements to help make your negotiations effective.
But first, just watch this short video to gain a quick understanding of these three essential elements that form the foundation of every negotiation.
If you’re new to investing, you might be wondering if it’s possible to manage your own commercial property. The short answer is “yes”, but only if you know what you’re doing.
It’s important to note that owning a commercial property comes with certain legal responsibilities, particularly when it comes to compliance with Essential Services requirements under current Building Regulations.
The current trends in the business have made it clear that office landlords have to cater to the needs and preferences of their tenants. Building owners and managers (who understand and meet these demands) will be able to command higher rents and reduce vacancy rates.
To expand on this, here are four key tips to help attract quality tenants.
