Time for Some Contrary Thinking with Your Commercial Property Investing

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…]

Commercial Property: Decisions … Decisions?

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…]

City Office Markets Starting To Reclaim Their Pre-GFC Values

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…]

Where To Now, For Interest Rates?

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…]

Your Timing Within The Commercial Property Cycle

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…]

Several Short-Term Strategies For Commercial Property

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…]

Current Opportunities Within The Commercial Property Market

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…]

Is the Mining Boom Causing a Surge in New Cafes?

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…]

The Impact of Solid Population Growth Over the Past Decade

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…]

Commercial Property Negotiating: The Framework for a Great Deal (Part 3)

You need to keep asking Questions, right until the end.OVER THE past couple of weeks, you’ve quietly worked your way through the first 14 questions … as part of your prep-work for each Negotiation.

And today, you’ll be covering the final 6 key questions — to help ensure your success. [Read more…]

Commercial Property and The Current Economy

These are Better Indicators of our Economic Well-beingLAST WEEK, we explored just how the misuse of statistics by some commentators was distorting of the truth about Australia’s economic well-being, on a state-by-state basis.

So it is with several other indicators, as David Bassanese pointed out in a recent article (AFR: 22 March, page 36).

Many commentators are pushing for interest rates reductions, because the “economy is soft”. And they list … [Read more…]