Insider Tips to Help You Discover How to Succeed with Commercial Property
h3. “And I decided to Make the Move, as of 1 July!”
You would already be aware … that I merged the entire business of Gardner & Lang with GrayJohnson, in May 2005.
And that simply occurred because I was becoming “stretched far too thin”, trying to provide the level of service that you (as my Clients) deserved.
From then until June 2009 … I have headed up their Acquisition Division, for Clients wanting to purchase Commercial property.
Property Edge Logo
Earlier this year, you read about a funding crisis pending for Property Trusts and Institutional buyers. And this is not helped by the RuddBank failing to materialise.
With a surge in the Share Market since March, several recent capital raisings have helped some of these larger property owners.
However, with the latest hiccup in Share Market confidence, you’re unlikely to see much more capital raised in this way.
Capital Gap
As you can appreciate, the financiers are proving to be rather difficult.
Therefore, over the next two years, you could see a gap of up to $30 billion emerge, between properly valuations and what bank are prepared to fund.
But these problems seem to relate mostly to commercial properties worth more than $20 million.
Because, for properties less than $10 million … the market appears conservatively geared, and is experiencing strong demand — especially for properties in Melbourne, priced under $5 million.
So it is somewhat a two-tiered market … with a number of good opportunities starting to emerge.
Capture The Benefits
Depreciation is probably the most under-used weapon to legitimately shelter a significant portion of your property income.
And as a Commercial Investor, you really do have an unfair advantage over somebody investing in only residential property.
Therefore, let’s now set about dispelling a few of the common Myths concerning Depreciation.
[Read more…]
An earlier post outlined my view on how the various CBD Office Markets would perform around Australia.
Future CBD Office Vacancies
Interestingly, their take on the level of vacancies is that it will not reach anything as bad as the 1990s.
But Perth, Brisbane and Sydney will be the most affected … and slowest to recover.
Victoria may not have grown as fast as Queensland and WA over the whole of 2008.
December Quarter Growth Figures
And as mentioned in an earlier posting … the positive impact of the Bush Fire Relief funds will certainly help to shore up Victoria’s position even further.
As I mentioned in a recent email to some Clients, it’s been surprising how few quality properties have been forced onto the market — given the difficulties caused by current global turmoil.
You’ve heard so much lately as to how bad things are. But let’s undertake a quick comparison for Australia — between 1990 and now.
[Read more…]
Anecdotal evidence suggests that consumers are cutting back on their spending around Australia. And it’s likely that luxury items and overseas travel will be the most affected.
A recent article in The Age expounded “The Flight to Value” — where Australian Property Monitors reported a 24% drop in the median price for Toorak Homes, in the 6 months to September.
[Read more…]
There are a couple of questions on the minds of Commercial Property Investors at the moment.
And they go something like this.
[Read more…]
According to the recent Property Council (PCA) report in the Financial Review (AFR) … the 6 months to June saw overall demand for offices fall around Australia — as business confidence has gradually waned throughout the world.
[Read more…]
There has been much made of the poor US Retail Sales Data for December.
However, the figures were only down 0.4% on November. The most likely explanation being that some early Christmas shopping occurred November; and the increase in gift-card sales will not come through until early in 2008.
Clearly, the Sub-prime issues are having some effect. But, if you follow HS Dent at all — their view is that … “a short, mild recession is indeed likely, and we are arguably already in the middle of it.” (Update: Wednesday 16 January 2008).
[Read more…]
Will things really change all that much, now that Australia has wall-to-wall Labor governments across the country?
You’d better believe it!
[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.
