Insider Tips to Help You Discover How to Succeed with Commercial Property
THIS RATHER pressing issue appears to be receiving little or no coverage at all.
But if you listen to the insolvency firms, Western Australia is about to become the “hot spot” for distressed property.
And as you can see from the chart, Queensland well and truly holds the the crown at the moment. [Read more…]
LAST TUESDAY, the RBA left the cash rate on hold — much to the surprise of most pundits. And yet, only the week before, that’s exactly what I suggest would happened.
You might also remember I suggested that you lock in a fixed rate mortgage — because it was then about 1% below the variable mortgage rate.
Many scoffed, and said that rates will continue to come down. Well, the past 7 days have certainly put paid to that theory — with the big 4 Banks raising their rates, quite out of step with the RBA. [Read more…]
THE GENERAL consensus seems to be that the RBA will further reduce rates by 25 basis points. But can this view be fully justified; and what does all this mean for Commercial property investors?
Most pundits would point to the recent CPI figures and say “Yes”! And on the surface, an underlying inflation rate of 2.5% per annum is plumb in the middle of the RBA’s stated target zone.
Yet despite what seems to be a rather hesitant mood by consumers, inflation in the service sector actually surged by massive 4.4% per annum. And some other sectors (not affected by overseas competition) also finished the year strongly, growing by 3.9% per annum. [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…]
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…]
If you’re looking to purchase a Commercial property to occupy yourself, perhaps you should make it a two-step process — by first renting a property within the location you prefer.
Finding somewhere to lease is relatively easy, as not everyone wants to sell their commercial property.
Most people own Commercial property for investment — which means you would be able to occupy the space, for as long as you keep paying the rent. Plus, you can then discover whether it is the location you want for your business.
Anyway, you may care to check out a few more tips on buying commercial real estate, as you continue reading. [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.
Exactly why have industrial companies around the world been slow to recover? And why did everything look so promising … and then suddenly, seem to grind to a halt?
Perhaps some insight into this dilemma was provided by the IMF’s recent World Economic Outlook.
According to Oliver Blanchard (its chief economist), there are the dual influences of a slowdown in advanced Western economies; and the overall financial uncertainty.
During the GFC, companies allowed their inventories to run down. Then, with a hint of global recovery, those same companies began replacing their depleted inventory levels. [Read more…]
Yesterday, I gave my Inner Circle a “sneak peek” at the outline for my brand-new training Course … “Mastering Commercial Property”.
And over the past couple of weeks, I have actually progressed a fair way down the track, in bringing it all together.
However, I just wanted you to see the direction in which it was heading.
Therefore, you can take a look now at just how the website is taking shape. And please keep your feedback coming — because no it’s been just so helpful.
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THE BEST looking property could actually represent the worst real estate investment you have ever made.
Remember that Commercial real estate investing is all about … the Deal, the Terms and the Return on investment. Here are some tips for successful Commercial real estate investing. [Read more…]
Well, not here in Australia anyway! And even overseas, things are vastly different this time around.
In 2008/09, it was private debt causing the problems … because nobody was too sure which banks were overly exposed to the sub-prime mortgage problem. [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.
