Insider Tips to Help You Discover How to Succeed with Commercial Property
When you’re just starting out, your main aim is probably just trying to secure a worthwhile property.
However, to be truly successful, you actually do need to have a Master Plan.
And to help you, here are 6 Steps towards formulating one for yourself. [Read more…]
Most investors fail to properly research the market and understand the relationship each sector (office, retail & industrial) has with the local economy, nearby competition and the marketplace itself.
Many investors fail to thoroughly analyze and research their chosen properties as far as the overall economics, calibre of the tenant and any related risks that may be involved.
Investing in Commercial property requires a reasonable degree of hands-on involvement. Some investors make the mistake of believing they can be absentee landlords. You at least need to be involved at a strategic level.
Negative gearing is fine. But you still need to start with sufficient equity, to ensure that your investment is not over-leveraged. Always keep some funds aside for unforeseen issues that may arise.
The ownership of Commercial property needs a basic understanding of things like … tenancy law, building construction, how to add value, recognising market trends and so on. All of these can be very easily addressed.
Some beginners tend to believe a cheap price means good value and a sound investment. Instead, you need to look behind what is being presented to discover the true underlying value.
To be a really successful Commercial investor, you need to build up a trusted team around you — to provide valuable input in the areas of …
After you’ve purchased your first property, you need to widen your perspective — both geographically, and across the various sectors of Commercial property. Never simply have all your eggs one basket.
With Australia having weathered the global financial crisis, we are now having to cope with the potential after-effects of:
Given all of these so-called “Black Swan” events occurring so close together, certain pundits appear to be jumping to the wrong conclusions.
They are ignoring the fundamentals; and simply encouraging a knee-jerk reaction — driven more by sentiment and (supposedly) an attempt to avoid risk.
Right now, many investment decisions are being based upon incomplete, and often incorrect, information. And this is also being inflamed by sensational headlines in the media.
Without question, the human pain and suffering in these disasters is beyond a full comprehension — whether it be in Japan, NZ, Libya, Queensland or Victoria.
However, history would suggest the adverse economic effects will be comparatively small and temporary.
In all these circumstances, there may be some short-term decline. But the subsequent rebuilding efforts tend to provide an economic boost, well beyond what would have otherwise occurred.
You only have to look at the Victorian bushfire tragedy of several years ago. As truly devastating as that was … the Victorian economy now leads the rest of Australia in so many areas — both economically and in its relative population growth, compared with other states.
With Japan, its $200 billion rebuilding program will consume an enormous volume of steel — and therefore, create huge demand for Australian iron ore and coking coal. Not to mention, the design and construction opportunities for Australian firms.
Bottom Line: Just step back, and view the fundamentals clearly.
While China remains an important influence, the recent disasters in New Zealand and Japan will also actually impact very favourably upon the Australian economy AND the Commercial property market.
Your competitive advantage will be found in buying Commercial property … while others seem to be frozen to the spot.
THE FOLLOWING Buying Criteria are ranked in what most investors consider to be their relative importance.
These two criteria alone could prove to be most important in achieving your Investment Objectives. What you’ll look for is a strong corporate (or government) tenant, with a minimum of a five-year lease term.
With that in place, you’re well on your way to making a successful investment. [Read more…]
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…]
FOR EASY reference, I thought the simplest way would be to split these Common Property Terms up into three alphabetic sections.
And so, you can now sift through this next section from …
AS YOU can appreciate, I quite regularly get asked to explain what the various property terminology actually means.
Therefore, I thought it might be worthwhile to provide you with your own point of reference, over the next couple of weeks.
And I’ll do that by giving you various definitions starting with those items ranging from “A to C”.
That way, you will be able to quickly find the answer — whenever you are unsure about any property jargon being thrown around, by people who may be simply trying to show off.
What you’ll find here are practical definitions, intended for the every-day Investor.
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…]
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.
