Smart Investor Seminar

Just quickly …

On Saturday 27 August, I have been asked to take the Session on Commercial Property Investing … at this Smart Investor Seminar.

And I simply thought you may have some interest in knowing what’s also being covered at the same time. [Read more…]

Commercial Property:
Pricing Your Finance – Part 2

Last week, you looked at the reasons why lenders view Commercial property in a different league to Residential property, when it comes to finance.

Many things can affect the Pricing of your LoanAnd then, we moved to the various aspects Commercial lenders look at as far as Risk is concerned.

More importantly, just how these aspects will determine whether or not they will actually lend against the actual property you are looking to purchase.

However, what you really want to know is … [Read more…]

Commercial Property:
Arranging Your Finance – Part 1

Commercial property finance is one of those aspects probably the least understood — and therefore, can lead to some are rather poor decisions by investors.

Take care when arranging your Commercial LoanThe most important thing you need to grasp is that there are basically no hard and fast rules about the various factors like … the leverage that is available … costs associated with Commercial loans or … the actual lending criteria most financiers and adopt.

When it comes to Commercial finance, everything has to be viewed in relation to the strength and size of each particular deal. [Read more…]

Commercial Sales Gain Momentum

AuctioAuctioneer's gavelneer's gavel
Around Australia, Commercial clearance rates at auction are now about on par with Residential property — averaging at around 50%.

Victoria seems to be leading the way, with Commercial clearance rates for some types of property approaching 70%.

New South Wales is running about six months behind at? around 60%, with firming yields. And Queensland is probably a further 12 to 18 months away in its recovery. [Read more…]

Distortion Guaranteed?

While the Rudd government may have moved quickly to provide guarantees for the major Banks during a financial turmoil … the impact of doing so has been disastrous for borrowers.

Right now, these major Banks seem to account for virtually 80% of all owner-occupier loans for property.

As such, the margins they are charging have never been higher — despite the Banks’ protestations of being “squeezed”.

RBA's Dilemma

RBA's Dilemma


Therefore, overall borrowings borrowings have been slowly trending downward over the past six months — because the major Banks have effectively amplified the rate increases handed down by the RBA.
[Read more…]

South Yarra … Amazing!

Location Plan

Location Plan

If you haven’t been there for a while, you’ll be simply astounded at the Commercial transformation going on — between Chapel Street and the South Yarra Station.

9 Yarra Street

9 Yarra Street

Anyway, I’ve just been given access to several newly-tenanted Office Suites at 9 Yarra Street — which I presented to a select group of Clients, only yesterday.

And they’ve started snapping them up.

Since putting the details up on a web page for easy access … two of the Suites have sold. And three more have been placed “Under Reserve”.

And so, if you’re looking to secure a great little investment in the $200,000 to $600,000 price range … there are now only a few left!

Was the RBA Asleep at the Wheel?

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

Bursting Bubbles


Nonetheless, you continue to see a surge in home values; and headline inflation is now starting to creep up again. [Read more…]

“How Baby Boomers affect
your Commercial Property”

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…]

What about the Baby-Boomer Effect?

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…]

Your Opportunities Moving Forward?

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…]

Biggest Economic Threat For Australia

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…]