Insider Tips to Help You Discover How to Succeed with Commercial Property
WITH THE Commercial property market now starting to gain some momentum, it might be worthwhile reviewing your current Investment Objectives — simply to ensure they align with your underlying investment strategy.
In formulating that strategy, you may choose to vary the specific order of importance for the following set of Objectives. [Read more…]
Just take a look around your capital city CBD. And tell me, how many cranes to currently see on the skyline?
Sydney Skyline
Whenever Investors are confused … the Property Market tends to do nothing and simply moves sideways.
Confusion Reigns
People simply put their buying decisions ‘on hold’. And then, frantically played catch-up over the last 12 months … as soon as they realised things were still okay here in Australia.
Over that period, you have seen most Commercial markets around the country showing good growth — particularly in Melbourne.
[Read more…]
The other day, we took a look at Commercial property cycles, and where the various Australian CBD office markets might sit.
Currently, Melbourne seems to be “leading the pack”. But you might be interested to explore exactly why that is.
Melbourne Office Market
Several pundits are suggesting it could be even lower.
h3. And the reason why?
[Read more…]
Overall, Australia has sailed through the Global Financial Crisis more or less unscathed. And from all accounts, Victoria and enjoys the standout economy of all the States.
Last week, you explored the traditional cycle for CBD Offices — being 18 years from peak to peak. And over that same period, Retail and Industrial properties tend to go through several cycles.
However, given Australia’s privileged position within the global scene … my view is you are now at the upswing in the cycle for the Office market. In other words, you are already at the halfway point in the traditional Cycle.
[Read more…]
Before talking to you about Commercial property, let’s take a quick look at Investment Cycles in general.
A recent AFR article contained this rather clever chart … showing an Investor’s mood at different points throughout the Cycle.
My reading would be that Australia is currently at the “Optimism” stage of the upturn — perhaps with some capital cities, a little more so than others. But generally, that’s about where most of us are at the moment.
[Read more…]
Last week, we talked about what you could be missing out on … when you find the need to move.
Whenever you decide to relocate to new Headquarters, what are the key things you are seeking to achieve? [Read more…]
Buying and negatively gearing a Commercial investment property is not forever in one — particularly, with interest rates on the rise.
And if you already have high personal debt … adding to that wouldn’t be a smart move on your part.
Negative Gearing
Any gearing you decide to take on, should be viewed as part of your overall strategy — and not there simply to minimise your tax bill.
[Read more…]
The RBA’s decision on interest rates yesterday came about because of what’s happening here in Australia, rather than in Europe.
It has been made against the backdrop of our exporters having recently extracted massive price hikes for iron or in coal, as a result of China’s strong growth.
Since the global turmoil started in 2008, the $A has climbed by nearly 55% against the $US — and just over 40% against our other key trading partners.
RBA Logic
As a result, the NAB’s business confidence index stands firmly positive for the third consecutive quarter. And even more importantly, actually improved throughout the last quarter.
h2. How will this affect Commercial Property?
[Read more…]
FINANCIAL INSTITUTIONS HAVE a range of methods for evaluating commercial properties, but there are some general guidelines that they typically follow.
One of the key numbers that banks focus on is the property’s Net Operating Income (NOI), which is essentially the rental income minus expenses.
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.
