When Your Tenants Leave …

Depending upon what your Lease specifies upon termination, the cost to “make good” the property can vary dramatically. Furthermore, the tenancy fit-out (and original condition) of the property can also impact on that cost.
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Site Contamination Needs to be Addressed

Whenever you acquire a Commercial property, you would normally investigate this as part of your Due Diligence — depending upon the current use made of the property.
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An Interest Rate Reprieve — for now!

Last week, the Reserve Bank of Australia (RBA) held its cash rate at 6.25% for the eighth month in a row — a decision welcomed by the Government and home buyers alike.

RBA July 07Inflation figures (due out later this month) could put pressure on the RBA to lift rates. However, the high Australian Dollar (at around US 85c) means that there is no external pressure on inflation, from imported goods. And, despite the higher dollar, demand for our exported commodities remains at record levels — which has in turn narrowed our Trade deficit.

Therefore, even with our GDP growing, inflation seems to have remained in check. And this is likely to continue — given the modest wage increase just granted with the Fair Pay Commission.

While the RBA has left interest rates on hold at 6.25% … our rates are still well above other major countries. That makes Australia an attractive place for overseas funds — which is causing our dollar to remain high. And you should see this situation continue for the next 4 to 5 months.

Then, as other countries start to increase their own interest rates … you will quickly see our rates follow suit.

Family Finances are being Stretched

With house prices solid or rising everywhere except in Sydney, household debt is now almost out of control.

In the late 1980s and early 1990s, you saw the highly-geared Business sector collapse as interest rates rose. But now, you’re finding it is households with the high levels of debt.

In 1990, households had (on average) borrowed only 65% of their disposable income. By 2005, that figure had rocketed to 155% of their annual disposable income. And today, it stands at nearly 170%.
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If you missed the Property Workshop …

As it turned out, there were quite a few of you who simply couldn’t make it along to the February 24 Property Workshop.

*However, it was all captured for you live on tape.* And we received some very good feedback – confirming just how worthwhile the Workshop proved to be.
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The G+L December eBulletin

By now you are probably winding down, and getting ready for a well-earned Christmas break.

As you’re aware, the purpose of the postings on this site is to give you quick updates on events affecting you as a Commercial property investor.

However, our regular eBulletins are still designed to give you a more in-depth analysis of Market trends — but on a quarterly basis.

The current eBulletin takes a look at where you are in the Property Cycle; and what it is you need to consider.

You can now go to our main website for the complete picture.

“Will there be another Crash?”:http://www.gal.com.au/FREE-eBulletins/Current-eBulletins/Thinking-Ahead-3.html

“If there is to be a Crash … When?”:http://www.gal.com.au/FREE-eBulletins/Current-eBulletins/Thinking-Ahead-3.html#when

“How widespread will the Crash be?”:http://www.gal.com.au/FREE-eBulletins/Current-eBulletins/Thinking-Ahead-3.html#spread