Insider Tips to Help You Discover How to Succeed with Commercial Property
In fact, the RBA has been cautious … NOT asleep!
Last week, we covered the statistical anomaly relating to Australia’s low unemployment figure. And that may well have influenced the RBA in holding rates steady last month.
Although, the patchy spending in December and January probably coloured their thinking as well.
Bursting Bubbles
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
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…]
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.
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
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…]
While several capital cities still have a reasonably high Office vacancies, there is a general shortage of space looming.
Twelve months ago, it was all doom and gloom for the CBD Office markets in Perth and Brisbane — with falls expected in both rents and values. New projects were being finished, as the resources boom ground to a halt.
In Sydney … investment banks, lawyers and accountants were reducing staff in anticipation of a severe downturn in the finance sector.
[Read more…]
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 …
[Read more…]
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…]
By early December 2009, sales of Commercial property in Melbourne’s CBD had almost reached $1 billion — according to a report prepared by Jones Lang LaSalle.
Apparently, Melbourne office sales (for buildings over $10 million) totalled around $998 million — while in Sydney, it had reached $444 million.
Sales may well have topped the $1 billion mark by the end of December, because this strong activity resulted from private investors — particularly, in the region of $50 million.
And following another recent survey, more than half of Colliers’ client said they were expecting to see further growth in 2010.
In the suburbs, strata Office demand remained strong — with smaller owner-occupiers seeking Offices close to shops and main arterial roads.
Over the years, you have probably seen various economic clocks explaining the different phases, and their relative timing.
Economic Clock
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…]
CBD Office Vacancies
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…]
Looking Up
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…]
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.
