.
WHENEVER YOU CONSIDER Commercial property, it’s important to fully understand what the overall Yield is likely to be.
And the simple formula to arrive at an estimated overall figure is:
And investors often ask me … How do average Yields vary from one sector of the Commercial property market to the other. [Read more…]
.
ONE QUESTION often asked by inexperienced investors is whether or not you can manage your own Commercial property.
And clearly, the short answer is “Yes” … if you know what you doing.
However, owning a Commercial property means that you do have certain legal responsibilities. And among them are your property’s compliance with the various Essential Services requirements, under current Building Regulations. [Read more…]
.
RECENT MEDIA HEADLINES have been dominated by vested political and community interests — following the Government’s May Budget.
The fact that there is screaming from so many quarters, probably means the Budget thrust is not too far off the mark. [Read more…]
.
AN ARTICLE in the Weekend Financial Review (Page 39) opened with … “Macquarrie Group, a bellwether for the strength of the office leasing market, is expanding.”
And this clearly accords with a recent report released by BIS Shrapnel, which confirmed the Office recovery would be stronger in “service and trade exposed markets like Sydney and Melbourne, but weaker in the mining-based markets such as Perth and Brisbane.” [Read more…]
.
THE RBA RECENTLY confirmed a neutral bias, when it announced its latest decision to keep the official interest rate on hold.
Inflation appears to be relatively steady — and still well within the RBA’s stated band for comfort.
Furthermore, the feedback from the Residential market is that house prices in Sydney and Melbourne now appear to be levelling out.
The RBA was keen to see the Residential market slow somewhat. However, if that doesn’t remain the case, it may need to look to increase in interest rates. [Read more…]
.
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…]
.
HAVE YOU NOTICED how people are generally now acting in a far more positive manner. And that’s simply because they are starting to feel “wealthy” again. [Read more…]
.
FURTHER EVIDENCE of an underlying strength in the Commercial property market is now provided by the latest IPD/Property Council index.
During 2013, you saw investors (both local and overseas) stride out from the shadows of the Global Financial Crisis. And as this graph confirms, every sector has displayed a healthy improvement in selling yields. [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…]
.
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…]
.
THERE HAS BEEN a whole lot of negative talk recently about the detrimental impact of the Car Industry leaving Australia.
And clearly, our hearts go out to all the affected workers and their families in car manufacturing and those related component suppliers.
Most of us cannot even begin to imagine the shock and surprise they are now feeling — particularly right on Christmas.
And yet, if you just focus upon the likely impact on the Australian economy … much of the commentary can be seen as misguided. [Read more…]
