How Will the RBA’s Decision Affect Commercial Property?

7 June, 2012 by Leave a Comment

NOT EVERYONE was expecting the RBA to further ease the cash rate, when its Board met this week.

Some felt the Board would simply “keep its power dry”, and just wait to see how the outcome of the 17 June election in Greece unfolded.

Some economists like Saul Eslake (of Merrill Lynch) felt that the $2.5 billion of cash payments by way of government compensation for the carbon tax, would serve as “enough stimulus” for now.

But maybe, such thinking took too simplistic a view of things. [Read more…]

Filed Under: Economic Issues, Employment, Global Scene, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities Tagged With: , , , , , , , , , , , , ,

Emerging Trends in Commercial Property

31 May, 2012 by Leave a Comment

Traditional Family Businesses have changed over time.SINCE THE 1800s, there has been a procession of younger family members joining long-established family businesses.

Traditionally, it has been sons following in their father’s footsteps.

But things started to change during the late 1970s and early 1980s, when you saw more daughters taking up the challenge, and also joining the family firm. [Read more…]

Filed Under: Investment Opportunity, Market Sectors, Offices, Opportunities Tagged With: , , , , , , , , , ,

Time for Some Contrary Thinking with Your Commercial Property Investing

24 May, 2012 by Leave a Comment

View the current Opportunity for what it is.AMIDST ALL the recent doom and gloom, major global banks are quietly alerting their clients to prepare for a sharemarket surge, if Greece exits the Euro-zone.

That’s because they believe world authorities will be flooding international markets with massive liquidity.

And given the G8 Communique from Camp David, this may well occur anyway — just to keep Greece within the fold. [Read more…]

Filed Under: Economic Issues, Global Scene, Investment Opportunity, Offices, Stability Tagged With: , , , , , , , , , , ,

Commercial Property: Decisions … Decisions?

17 May, 2012 by Leave a Comment

With Commercial Property you have so many choicesIT’S INTERESTING how many investors seem to “graduate” to Commercial property, after first starting out with residential property.

But when you think about it … that’s probably an understandable progression.

So, why would you Purchase Commercial Property?

Once you grasp even the basics of Commercial property, you quickly discover its NET yield is 2 to 3 times that of residential property. But more importantly, your tenants seem to stay 4 to 5 times longer. [Read more…]

Filed Under: Buying Criteria, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Residential vs Commercial, Retail Sector, Training Material, X~Factors Tagged With: , , , , , , , , , , , ,

City Office Markets Starting To Reclaim Their Pre-GFC Values

15 May, 2012 by Leave a Comment

Office Values heading back to pre-GFC LevelsIT HAS TAKEN almost 4 years … but 2012 should see the prime Office markets in Perth, Melbourne and Adelaide expunge the capital value lost through the GFC — according to CBRE research.

In turn, this will impact upon their suburban Office markets as well.

But it might take until 2016 before Sydney, Brisbane and Canberra are able to recoup that same lost ground. [Read more…]

Filed Under: Economic Issues, Finance, Global Scene, Investment Opportunity, Market Sectors, Offices, Opportunities, Stability Tagged With: , , , , , , , , , , , , ,

Where To Now, For Interest Rates?

8 May, 2012 by Leave a Comment

Key Components are distorting the CPITHE RBA Board’s big 0.5% cut in the cash rate surprised many people. While others were wondering … what took them so long?

You could certainly be forgiven for thinking that the trigger for this latest cut lay in the underlying inflation (at 2.2% pa) now being “under control”.

And also, that the RBA was seeking to lower the Australian dollar to assist manufacturers and exporters. [Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Interest Rates, Investment Opportunity, Offices, Opportunities, Retail Sector, Stability

Your Timing Within The Commercial Property Cycle

1 May, 2012 by Leave a Comment

The traditional Investment Clock for SharesIF YOU have invested in the share market, you would most likely be familiar with the so-called “Investment Clock” — which attempts to show how the economic cycle influences equities.

In essence, an over-heated economy is followed by rising interest rates and falling share prices. Then, as the economy declines interest rates start to fall and share prices rise again.

Some analysts have tried to devise a similar “clock” for Commercial property. But unfortunately, the results have generally not been useful. [Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Property Yields, Retail Sector, Training Material, Your Exposure Tagged With: , , , , , , , , , , ,

Several Short-Term Strategies For Commercial Property

26 April, 2012 by Leave a Comment

Clever improvements can bring Quick ProfitsCOMMERCIAL properties are mainly a longer-term investment, bought for their regular high yields — as well as for good capital growth over time.

Even so, an investor with some knowledge and experience can easily find properties able to be improved, and then on-sold for a quick capital gain. [Read more…]

Filed Under: Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Property Yields, Retail Sector Tagged With: , , , , , ,

Current Opportunities Within The Commercial Property Market

17 April, 2012 by Leave a Comment

The "Emotional Cycle" suggests an upturn in activityCONTRARY TO THE VIEW of many pundits, it’s certainly not all gloom and doom out there.

The share market may well have been moving sideways within a 4000 to 5000 band, since 2009.

Plus, the two-speed economy only seems to be benefiting the miners and those within the service industries. And unfortunately, increased savings levels are frustrating the retailers no end.

However, my view remains that Australians are now poised ready to come off the bottom of the “Emotional Cycle” — armed with a level of savings seldom seen in previous upturns. [Read more…]

Filed Under: Economic Issues, Global Scene, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector, Stability, Using Debt Tagged With: , , , , , , , , , , ,

Is the Mining Boom Causing a Surge in New Cafes?

12 April, 2012 by Leave a Comment

New Restaurants & Cafes are emerging everywhereFOR SOME time now, the RBA has been as assuring us of the flow-on benefits soon to reach the non-mining states of Victoria and New South Wales.

However, these benefits may not be very easy to recognise. And so, let’s attempt to make things a little clearer. [Read more…]

Filed Under: Economic Issues, Employment, Industrial Sector, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector Tagged With: , , , , , , , , , ,

The Impact of Solid Population Growth Over the Past Decade

3 April, 2012 by Leave a Comment

Solid Population Growth underpins Tenant & Buyer DemandEVERYONE seems to be talking about how people are flocking to the mining states … but does that really give a true reflection of what is occurring?

If you take a close look at the statistics, Melbourne is actually leading the country in increased population numbers.

In fact, it has added some 67,000 people during the 12 months to June last year. And Wyndham to the south-west (which includes Werribee) now holds the crown for Australia’s fastest-growing municipality, for the 2nd year running. [Read more…]

Filed Under: Economic Issues, Employment, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector Tagged With: , , , , , ,