Seeds of Opportunity Emerge from the Turmoil

IT MAY SURPRISE YOU to learn that new businesses grew at a record rate during the last financial year. And that’s because COVID-19 served up a whole host of new opportunities among the economic turmoil.

Apparently, there were 365,500 new start-ups along with 277,700 established businesses closing shop – delivering a net gain of 87,800 new businesses.

As encouraging as that may sound, these newcomers will face challenges going forward – given they began in a climate of low interest rates and government support.

Nonetheless, they will clearly add to the demand for suburban office space – as workers seek to avoid the grind of a long daily commute.

Add to that the large CBD firms currently decanting whole departments out to the suburbs – to also be closer to where their employees live.

Bottom Line: Every change (however disruptive) brings with it seeds of opportunity. Sometimes these are hard to recognise – but highly profitable, for those who do.

Commercial Property Outlook

THERE HAS BEEN much talk about Commercial Property emerging post-Covid. So, let’s quickly explore just how things are likely to unfold. [Read more…]

What are commercial plant and equipment depreciation deductions?

WHEN YOUR SPECIALIST QUANTITY SURVEYOR tells you that you can claim depreciation on almost anything, they mean it. [Read more…]

When Buying … Why Would You Accept a Passing Yield Lower Than Market Level?

ON THE FACE OF IT … there’s no logical reason why you would.

Unless of course, you were intending to occupy the property when the current lease expires. In which case, the initial low rental is really of little (or no) importance to you. [Read more…]

Handling Depreciation for Commercial Mixed-use Developments

YOU WILL FIND Commercial properties come in all shapes and sizes.

Office towers, warehouses, the local café, and farms are all examples of commercial properties. The flexibility and sheer size of commercial properties can offer investors the opportunity to own mixed-use commercial property.  [Read more…]

Why is Everyone Surprised at Our Speedy Recovery?

IF YOU REMEMBER back to last May and June of last year, I explained that the economic decline caused by COVID was quite different from any other recessions.

What we experienced was a Medical Crisis with economic implications. As opposed to a total collapse of the Financial System – as you experienced during the GFC. [Read more…]

Retail Sector Still Struggles

ONLINE SHOPPING boomed during the lockdown. However, smaller retail outlets in strip centres and malls are actually struggling.

A recent study showed 37% of some 10,000 tenancies are run by small business owners – with just 1 to 3 outlets. And they mostly comprise food, health and beauty. [Read more…]

How Will COVID Affect CBD Office Vacancy Rates?

IN LATE JANUARY, the Property Council of Australia released its 6-monthly summary of CBD vacancy rates around Australia.

And not surprisingly, there has been an increase across the board – following a slow return of office work, as a result of COVID. [Read more…]

Do You Really Understand The Fundamentals of Commercial Depreciation?

AS YOU’RE PROBABLY aware, BMT Tax Depreciation has been providing depreciation services to commercial owners and tenants for over 20 years.

During this time, their team has ensured these businesses maximise these returns by claiming millions in tax deductions.

Despite being the only non-cash deduction you have available, many investors are not making the most of the opportunity – or in some cases, not even claiming it at all. [Read more…]

Why Not Take Advantage of Record-breaking Incentives?

THE 2020-21 FEDERAL BUDGET introduced a number of new, temporary measures. The focus is to help boost the Australian economy out of this pandemic-induced recession, drive investment and to create more jobs. 

This budget announced record-breaking incentives that are now available for businesses located Australia wide.  [Read more…]

The Rapid Recovery Should NOT Come as a Surprise

YOU MAY RECALL back in May and July, I foreshadowed a quick recovery would occur – as soon as we emerged from lockdown.

You see, what we’ve just been through, is a medical crisis with financial implications. NOT a total financial collapse – like we had during the GFC.

As such, “Demand” didn’t disappear … it simply got deferred. And you’ve already observed that with consumers now engaging in “Retail revenge” – as depicted in the graphic below (AFR, front page: 3 Dec 2020).

During the pandemic my clients seemed to fall into two camps:

  • Those who feared a total collapse, with a prolonged recovery.
  • Those who listened and saw the opportunity to secure a good property, while the market itself remained confused.

Already you are seeing eager buyers re-entering the property market (both residential and commercial) – with prices on the rise once more.

Therefore, those who did buy during the pandemic are now having their faith vindicated. And now, the strength of this renewed demand is bringing more properties onto the market.

Therein, Lies Your Next Opportunity

Not all the properties coming onto the market during November & December can be absorbed before Christmas.

Naturally, this will make those vendors somewhat unsettled – because the commercial market doesn’t officially reopen again until February/March.

So, if you are cashed up and able to move quickly … there should be a number of good choices for you early in the New Year.

Bottom Line: What I’m planning to do is compile a list of those unsold properties for my clients. And then, we’ll quietly sift through these opportunities together – to help clients secure several genuine bargains.

If that could be of interest to you … just let me know.