Your Baby-Boomer Opportunity!

17 February, 2010 by Leave a Comment

Whenever you go through a major structural change within society or the economy … opportunities will always emerge.

But you’ll find that Baby Boomers won’t be retiring — well, not in the conventional sense. Most will leave their long-time employment, to establish some type of small consultancy business.

In the past, many well-known firms simply evolved as a result of one generation following the next into the family business.

Traditional Family Business

Traditional Family Business

Invariably, sons (and even daughters) left school to join their parent’s firm. It was a handy way to ensure easy succession; and stood Australia in good stead throughout the 1900s. [Read more…]

Filed Under: Baby Boomers, Buying Criteria, Economic Issues, Investment Objectives, Investment Opportunity, Offices Tagged With: , , , , , , , , , , ,

“How Baby Boomers affect
your Commercial Property”

10 February, 2010 by Leave a Comment

Last week, you hopefully gained a clearer understanding of the timing (and impact) Baby Boomers will have on Residential property, until around 2025.

Most people probably feel all this would have little or no impact on Commercial property.

And for some of you, that might be true. But I suspect there are many Boomers, where the effect could be quite devastating.

And here is the reason why [Read more…]

Filed Under: Baby Boomers, Economic Issues, Investment Objectives, Investment Opportunity, Offices, Property Cycles, Residential vs Commercial, Your Exposure

What about the Baby-Boomer Effect?

2 February, 2010 by Leave a Comment

Yesterday, the Federal government released Australia’s third Inter-generational Report.

And about five years ago, I came out with a somewhat startling statement:

“If you haven’t sold your traditional family home by 2010-11 … you had better be prepared to hold it until 2025 — because there simply won’t be a market for it!”

Chatswood ... Sydney

Chatswood … Sydney

And given the recent surge in home sales (particularly in Sydney and Melbourne) over the past 6 months … you would be excused for thinking my prediction might be way off the mark. [Read more…]

Filed Under: Baby Boomers, City Apartments, Economic Issues, Global Scene, Investment Objectives, Residential vs Commercial, Using Debt, Your Exposure Tagged With: , , , , , , , , , , , , , , , , , ,

Your Opportunities Moving Forward?

21 January, 2010 by Leave a Comment

There has been much written already about the global financial crisis.

But in layman’s terms, it occurred as a result of capital imbalances occurring throughout the world. And nowhere more so, than in America.

The principal cause can be found with the high levels of US debt-funded consumption. And in order to better understand this distortion, you might care to consider the following figures …
US Share [Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates, Investment Opportunity, Offices, Property Cycles, Residential vs Commercial, Your Exposure Tagged With: , , , , , , , , , , , , , ,

Biggest Economic Threat For Australia

13 January, 2010 by Leave a Comment

It might surprise you to hear this, however …

h3. A Strong US Recovery

… would probably be the worst thing to happen for Australia in 2010.

If that occurs, the US Federal Reserve would be forced to quickly raise interest rates, from zero to around 3%. And that would cause the collapse in the Australian dollar from its current level of around US90c.

Up until now, Australia has been shielded from inflationary pressures, with a high dollar holding down the cost of imports.
[Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Interest Rates, Investment Opportunity, Offices, Property Cycles, Residential vs Commercial, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , , , , , , , , , ,

Your Handy Economic Clock

27 November, 2009 by Leave a Comment

Over the years, you have probably seen various economic clocks explaining the different phases, and their relative timing.

Economic Clock

Economic Clock

Anyway, I came across this rather useful one the other day.

As you’ll see, it is actually a “Multi-asset Investment Clock” — in that you have all the sectors displayed together: Shares, Property, Resources and Interest rates.

Furthermore, if you click on it … you’ll see the clock confirms Australia is midway through its Recovery phase.

h3. And the timing for Commercial property? [Read more…]

Filed Under: Economic Issues, Interest Rates, Offices, Property Cycles, Your Exposure Tagged With: , , , , , , , , , , , , ,

State of the Commercial Market?

17 August, 2009 by Leave a Comment

CBD Office Vacancies

CBD Office Vacancies


As you would expect, the financial turmoil worldwide has had a significant effect on most property markets. However, the effect has not been the same across the board.

The current state of the various CBD office markets is probably your best barometer of future activity for two reasons. First, the Property Council of Australia (PCA) conducts six-monthly surveys to establish the CBD vacancy rates right around Australia.
[Read more…]

Filed Under: Economic Issues, Offices, Your Exposure Tagged With: , , , , , , , , , , , , , , , , , , , , , ,

Keep Your Eye on Inflation!

28 July, 2009 by Leave a Comment

Balancing Act

Balancing Act


Australia is supposed to be in the midst of a recession; and yet, underlying inflation is still running at 4% per annum.

If that’s the best we can do … what levels will inflation finally reach, once the economy moves into its recovery phase?

Strong sales have seen retailers cutting prices less than expected. And generally, other prices have held firm — because wages have not yet been affected by increases in unemployment.

On top of this, there are also serious supply constraints on the housing front, which are pushing up rentals.

h3. How will this affect things? [Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates, Investment Opportunity, Property Cycles, Your Exposure Tagged With: , , , , , , , , ,

Sentiment is Strong … Despite the Economy

10 July, 2009 by Leave a Comment

Looking Up

Looking Up


These graphs are painting a very encouraging picture.

As you can see, the Westpac-Melbourne Institute consumer sentiment index increased strongly by 9.5% for June.

And that means it has now leapt by some 23% since May — the largest 2-month increase for over 30 years.

First-home buyers have also been active, accounting for nearly 30% of all loans during May.

And this overall level of confidence follows an increase in retail sales, for three months in a row.
[Read more…]

Filed Under: Economic Issues, Global Scene, Offices, Retail Sector, Using Debt Tagged With: , , , , , ,

The “Fund Gap” Threatens …
Higher-Priced Commercial Property

25 June, 2009 by Leave a Comment

Earlier this year, you read about a funding crisis pending for Property Trusts and Institutional buyers. And this is not helped by the RuddBank failing to materialise.

With a surge in the Share Market since March, several recent capital raisings have helped some of these larger property owners.

However, with the latest hiccup in Share Market confidence, you’re unlikely to see much more capital raised in this way.

Capital Gap

Capital Gap

As such, Quadrant Real Estate Advisors have concerns with the high debt levels for these owners of Investment-grade property.

As you can appreciate, the financiers are proving to be rather difficult.

Therefore, over the next two years, you could see a gap of up to $30 billion emerge, between properly valuations and what bank are prepared to fund.

But these problems seem to relate mostly to commercial properties worth more than $20 million.

Because, for properties less than $10 million … the market appears conservatively geared, and is experiencing strong demand — especially for properties in Melbourne, priced under $5 million.

So it is somewhat a two-tiered market … with a number of good opportunities starting to emerge.

Filed Under: Offices, Using Debt, Your Exposure Tagged With: , , , , , , , , , , , , , , , , ,

Depreciation : 4 Myths Keeping You From
Maximising Your Secret Tax Advantage

3 June, 2009 by Leave a Comment
Capture The Benefits

Capture The Benefits

Depreciation is probably the most under-used weapon to legitimately shelter a significant portion of your property income.

And as a Commercial Investor, you really do have an unfair advantage over somebody investing in only residential property.

Therefore, let’s now set about dispelling a few of the common Myths concerning Depreciation.
[Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Interest Rates, Investment Objectives, Investment Opportunity, Property Cycles, Retail Sector, Tax Depreciation, Your Exposure Tagged With: , , , , , , , , , , , ,