Seeds of Opportunity Emerge from the Turmoil

IT MAY SURPRISE YOU to learn that new businesses grew at a record rate during the last financial year. And that’s because COVID-19 served up a whole host of new opportunities among the economic turmoil.

Apparently, there were 365,500 new start-ups along with 277,700 established businesses closing shop – delivering a net gain of 87,800 new businesses.

As encouraging as that may sound, these newcomers will face challenges going forward – given they began in a climate of low interest rates and government support.

Nonetheless, they will clearly add to the demand for suburban office space – as workers seek to avoid the grind of a long daily commute.

Add to that the large CBD firms currently decanting whole departments out to the suburbs – to also be closer to where their employees live.

Bottom Line: Every change (however disruptive) brings with it seeds of opportunity. Sometimes these are hard to recognise – but highly profitable, for those who do.

When Buying … Why Would You Accept a Passing Yield Lower Than Market Level?

ON THE FACE OF IT … there’s no logical reason why you would.

Unless of course, you were intending to occupy the property when the current lease expires. In which case, the initial low rental is really of little (or no) importance to you. [Read more…]

Tenders Due to Close on Thursday 27 May

This Property offers you a really “clean” Opportunity

It’s just one Building … with one Title… and one ASX-backed Tenant … paying $435,000 per annum NET – which is due to increase to $452,400 per annum in September this year.

Simonds Homes has taken out a fresh 5-year lease … with a 6-month Bank Guarantee. [Read more…]

Here’s Something You Probably Should Consider!

THIS INVESTMENT OPPORTUNITY has a fresh 5-year lease to “Simonds Homes” … along with a 6-month Bank Guarantee – plus, it’s also backed by an ASX-listed company. [Read more…]

The Rapid Recovery Should NOT Come as a Surprise

YOU MAY RECALL back in May and July, I foreshadowed a quick recovery would occur – as soon as we emerged from lockdown.

You see, what we’ve just been through, is a medical crisis with financial implications. NOT a total financial collapse – like we had during the GFC.

As such, “Demand” didn’t disappear … it simply got deferred. And you’ve already observed that with consumers now engaging in “Retail revenge” – as depicted in the graphic below (AFR, front page: 3 Dec 2020).

During the pandemic my clients seemed to fall into two camps:

  • Those who feared a total collapse, with a prolonged recovery.
  • Those who listened and saw the opportunity to secure a good property, while the market itself remained confused.

Already you are seeing eager buyers re-entering the property market (both residential and commercial) – with prices on the rise once more.

Therefore, those who did buy during the pandemic are now having their faith vindicated. And now, the strength of this renewed demand is bringing more properties onto the market.

Therein, Lies Your Next Opportunity

Not all the properties coming onto the market during November & December can be absorbed before Christmas.

Naturally, this will make those vendors somewhat unsettled – because the commercial market doesn’t officially reopen again until February/March.

So, if you are cashed up and able to move quickly … there should be a number of good choices for you early in the New Year.

Bottom Line: What I’m planning to do is compile a list of those unsold properties for my clients. And then, we’ll quietly sift through these opportunities together – to help clients secure several genuine bargains.

If that could be of interest to you … just let me know.

Smashing The 5 Myths About Commercial Property

RIGHT NOW everyone is rather confused because of COVID. And what I generally find is that when investors are confused … they tend to do nothing. 

Yet despite the dire predictions of market collapses, that’s NOT what has occurred. Sure, the share market has been rather volatile. However, the property market has basically held up well. [Read more…]

What’s the New Normal for The Post-COVID Office?

BEFORE COVID, Australians worked less from home than their counterparts overseas. However, now things have apparently been reversed.

And even though Australian office workers say they’ve been far more productive at home … there is a keenness to return to an office environment. [Read more…]

Australia’s Job Recovery Post COVID-19

DESPITE A RECENT surge in positive COVID-19 cases for Victoria, the infection rates detected by its testing blitz have remained at a very low 0.2%.

And so, that would suggest the virus is not widespread within the community.

Furthermore, there hasn’t been any marked increase in the number of cases actually requiring hospitalisation.

Half of the Job Losses to be Back by Christmas

[Read more…]

How Quickly Can Australia’s Economy Recover?

SEVERAL CLIENTS have been asking about how long until things start to get back to “normal”. And what changes investors need to watch for, after we emerged from lockdown.

During times of economic uncertainty, you should focus on the underlying fundamentals driving demand and investment. And these still remain strong.

In my view, you should see a stronger than expected recovery – provided various states don’t unnecessarily delay the steps needed to restart the economy. [Read more…]

The Truth Behind Falling Office Workspace Ratios

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THE QUESTION IS: Have the major corporate tenants been “sold a pup”? Or have their Financial Controllers merely been focusing upon cost savings, rather than employee productivity?

Why not watch this short video and then, make up your own mind?

[Read more…]

Why Choose Commercial Property Over Residential?

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Commercial

OBVIOUSLY, THIS IS the question every residential investor asks … whenever they are considering the transition across to Commercial property.

However, you will quickly discover the reasons are rather compelling. [Read more…]