Remember your Bonus before 30 June

Quite a few of you were rather quick to take advantage of the pre-30 June discount, for the set of Workshop DVDs — which is great! But that means I now have only a certain number left.

The simple reason for the reminder is that 30 June falls on a Sunday this year. Therefore, that makes it a short final week for the month — and I just don’t want you to miss out.

Family Finances are being Stretched

With house prices solid or rising everywhere except in Sydney, household debt is now almost out of control.

In the late 1980s and early 1990s, you saw the highly-geared Business sector collapse as interest rates rose. But now, you’re finding it is households with the high levels of debt.

In 1990, households had (on average) borrowed only 65% of their disposable income. By 2005, that figure had rocketed to 155% of their annual disposable income. And today, it stands at nearly 170%.
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Interest Rates — On hold till late 2007?

In a speech last week, Glenn Stevens (RBA governor) said he “saw no reason to revise its forecast for underlying inflation to settle at around 2.5 per cent in the second half of the year …”

As such, his message is that interest rates are likely to remain unchanged. But not everyone seems to share that view.
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Feedback on the Office of the Future

When I made mention of the revolving building planned for Dubai, a couple of people came back to me with some fascinating material.

If you’re interested you can “take a look”:https://commercialpropertymadeeasy.com/assets/2007/4/24/DubaiProjects.pps at what’s really going on over there.

Your Office of the Future

Imagine a building that makes oxygen … distils water … produces energy … and changes with the seasons. It’s all possible with the technology we now possess. Yet, in some cases, going “Green” it is simply too cost prohibitive.

However, in Dubai, they now have plans for a completely-revolving, 30-storey Tower — designed by Glen Hawells. And you’ll find that stored solar energy will power the revolving motion.
[Read more…]

Rush to Sell Up or Transfer Your Commercial Property Investments into Your Super Fund!

Should you hold, sell, refinance or simply transfer your Commercial property investments into your Super Fund?

You have until 30 June to put up to $1million into your Super Fund tax free. And then, that figure drops to $150,000 from the start of next financial year.

This simple logic is very persuasive — some people would even say a “no-brainer”. But, according to ING, that logic could be misguided and leave you worse off for up to 20 years.

Read the full “G+L eBulletin — Autumn 2007”:https://gal.com.au/x.php?adminid=2&tid=8

Construction Climate – Australia and NZ

In its Construction Cost Commentary for January 2007, the Rider Hunt offices report tendering activity continues to surge in most Australian cities, Sydney being the only location bucking the trend. In New Zealand, sustained levels of Building Consents and the coming on-line of some major projects indicate continued high levels of activity in 2007.

What I’ve done is to bring you some extracts from that report, And you’ll notice that Brisbane, Perth and Darwin are currently the strongest markets.
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Commercial Property Sales for 2006

As you have probably gathered, the demand for Commercial Property last year was strong.

In a recent article in the Financial Review, a report by CB Richard Ellis calculated that a record of $14 billion worth of Office, Retail, Industrial and Hotel property changed hands in Australia in 2006.

The accompanying table will give you a comparative summary of sales activity over the past 10 years.
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US Economy Seems to be Back on Track.

You may not have seen the recent reports … but there was an unexpected jump in new-house construction in December, and an increase in business activity in January. Plus, the US also saw a drop in its dole claims.

Despite these improvements, the full-year 2006 CPI for the US was only 2.5%; compared with last year’s concerning 3.4%.
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The G+L December eBulletin

By now you are probably winding down, and getting ready for a well-earned Christmas break.

As you’re aware, the purpose of the postings on this site is to give you quick updates on events affecting you as a Commercial property investor.

However, our regular eBulletins are still designed to give you a more in-depth analysis of Market trends — but on a quarterly basis.

The current eBulletin takes a look at where you are in the Property Cycle; and what it is you need to consider.

You can now go to our main website for the complete picture.

“Will there be another Crash?”:https://www.gal.com.au/FREE-eBulletins/Current-eBulletins/Thinking-Ahead-3.html

“If there is to be a Crash … When?”:https://www.gal.com.au/FREE-eBulletins/Current-eBulletins/Thinking-Ahead-3.html#when

“How widespread will the Crash be?”:https://www.gal.com.au/FREE-eBulletins/Current-eBulletins/Thinking-Ahead-3.html#spread

Understanding the Commercial Markets

You have seen strong growth and investor activity over the past 12 months; but neither of these have been very consistent — whether you look across the nation, or within each of the Commercial sectors.

Let’s take a quick look at each sector; and also consider the likely impact that further interest rate rises may have on your Investment Strategy.
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