Immigration Could Kickstart Australia’s Growth Again

AUSTRALIA HAS ALWAYS BOASTED a solid immigration rate – to the point, where about 30% of our population has actually been born outside the country.

During the pandemic, immigration numbers fell dramatically. As a result, vital skills shortages emerged among building & construction, hospitality and rural workers.

Over the years, the best-performing countries (where Australia stands out) were generally resource-rich, new-world countries with strong population growth and good record with corporate governance.

Immigration also drives Gross Domestic Product growth 

The Productivity Commission recently estimated immigration contributed almost 20% of the improvement in GDP per capita over the past 40 years.

Mistakenly, there are some who fear immigration will adversely affect employment levels – by taking jobs from existing workers. Instead, it’s been proven that immigration delivers broad-based improvements in productivity, across all levels of society.

Ultimately, these newcomers bring diversified skills to the workforce, which helps grow the total pie and everyone benefits – by driving productivity and innovation.

With our current skill shortages, immigration has an important role to play – initially, by plugging the glaring gaps in our workforce. But more importantly, by creating growth and improvements well.

Australia has long benefited from the cultural richness and diversity that immigration has given the nation, but we sometimes forget the economic benefits.

Bottom Line: There is no doubt immigration has introduced cultural richness and diversity into our society. However, we should also be aware of the economic benefits across every sector of the market – including Commercial property.

Best wishes …

Depreciation Deductions for Retail Owners and Tenants

THE AUSTRALIAN RETAILERS Association (ARA) reported fifteen consecutive months of growth within the retail trade as of November 2022. 

According to ARA CEO Paul Zahra: “November’s results remain strong when compared to the same period in 2021. The result is particularly strong considering the cost-of-living squeeze being felt by households across the board”.

A slowdown of spending in 2023 is expected as a result of inflation and rising costs of business. [Read more…]

7 Steps to Help You Succeed With Commercial Property

PURCHASING COMMERCIAL PROPERTY can be one of the most profitable investments you will make. However, there are a few steps you need to follow to help ensure your success.

1. Do your homework 

Understand the local property market and the specific property type you’re interested in. Look at things like rental rates, vacancy levels and the physical condition of the property.

2. Understand the intricacies 

Investing in Commercial property can be more complex than residential. However, if properly handled, you can generally enjoy twice the net return you’ll obtain from residential property.

3. Create a long-term strategy

Consider your overall investment strategy, and how Commercial property fits into it. Consider the property’s long-term potential, and how it can provide you with a steady income stream.

4. Seek professional advice

Engage a good property advisor, lawyer, accountant, builder and property manager to help you navigate the process of buying and managing a Commercial property.

5. Financing options 

There are several different financing options available for Commercial property. It’s best to work with a mortgage broker to obtain indicative approval before finalising the actual purchase.

6. Spread your risk 

Diversifying your portfolio can help reduce risk. Investing in different types of properties, in different locations, and with different tenants can help spread risk across multiple investments.

7. Be patient 

Commercial property investments can take time to deliver their full potential. So, be prepared to hold onto the property for several years. Be patient and stay focused on your long-term goals.

Where to, from here?

You might feel you’re ready to purchase a Commercial property … but perhaps need some guidance along the way.

If so, you can watch this short video giving you some background to my Mentor Group. There’s absolutely no commitment – but it may just pique your interest.

Best wishes …

Commercial Property Going Forward in 2023

WITH A CLEARER OUTLOOK for interest rates, Commercial property is expected to bounce back in 2023. Particularly, with several pundits suggesting the RBA could well start to ease rates again later this year.

Understanding the facts

There will be some investors, who may initially take a cautious approach. [Read more…]

Attracting Staff Members Back into The Office

ATTRACTING GOOD TALENT is proving to be a real issue for many businesses, with unemployment at a near 50-year low. Plus, one of the major challenges right now is how to actually lure staff back to the office.  [Read more…]

Your Key Steps When Packaging a Deal?

IT’S ALWAYS INTERESTING to discover some Commercial property investors still feel contracts there’s a need to include a “subject to finance” clause – so they can check whether or not funds will be available. 

However, they are in fact approaching things from the wrong angle. You see, you don’t need your finance approved before entering into a deal. [Read more…]

How Important is it to Have An Investment Strategy?

AS IT IS WITH ANY INVESTMENT you make – be it shares, property or collectables … you need to know where you are heading. Plus, also ensure you have a solid foundation upon which to base all your decisions.

So, clearly, the answer to this question is: “Very important!” And probably more so, when you’re considering a commercial property. [Read more…]

Should You Engage a Property Manager?

AS YOU CAN IMAGINE, this is a question I often get asked.

So, let me perhaps start by saying that with all my properties … I, personally, engage a skilled property manager.

And people then ask … If you know so much about commercial property, why don’t you manage the properties yourself?

The answer’s fairly straightforward – as there are basically 4 reasons … [Read more…]

For Your Business: Is it Better to Rent or Buy?

CHOOSING WHETHER TO buy or to rent a Commercial property can often be a difficult decision. When you buy commercial property, you’re purchasing it with cash or loan proceeds. And when you have paid off the loan, you own the property outright. [Read more…]

It’s NEVER Too Late for Commercial Investors and Business Owners to Claim Thousands in Depreciation

JUST BECAUSE 30 JUNE has been and gone, commercial investors and businesses don’t need to wait another financial year to obtain a tax depreciation schedule. Even if a schedule is ordered after the end of a financial year (FY), depreciation can still be back-claimed.  [Read more…]

Looking at Commercial Property Post-COVID

CLEARLY, THE WINNER throughout 2020 has been warehousing and logistics – due to the massive surgeon online shopping, during the pandemic. And hopefully, that will eventually flow on to bricks-and-mortar retailing.

The other impact of online shopping has been the increased demand for cloud computing and information storage. And in turn, this has seen growth in demand for data centres. [Read more…]