Does a Solid Sales Increase in February Mean the Retail Sector is Now Back?

Strip Centres are still strugglingYOU WILL quickly find that there are two different schools of thought:

  1. After much hibernation, Retail property is set to surge again.
  2. With the high dollar, and growth in online shopping, the Retailing has much catching up to do.

Despite Australia having been mostly sheltered from the global financial crisis, retailers (especially in strip shopping centres) have been doing it rather tough.

Before the GFC, Retail property yields had plummeted. In some cases, as low as 3.5% per annum — with investors clamouring for what they saw as “sexy property”. And they believed values would always increased dramatically. [Read more…]

Commercial Property: Getting The Numbers Right

Getting The Numbers RightOVER THE PAST few weeks … we’ve spent some time talking about the Anatomy of a Commercial Property Dealhow to to find Top Commercial properties and … the need for proper Due Diligence.

However, it’s probably worth showing you how to establish what funds you actually have available to invest upfront.

It’s certainly not a complicated process — but a vital one , nonetheless.

You see, many investors tend to overestimate (and will often even underestimate) the amount of the funds they may have available. And that immediately impacts upon the value of the property you can acquire. [Read more…]

How Do You Find Top Commercial Property Deals?

Being creative will deliver you Top Commercial property dealsMOST INVESTORS believe keeping an eye on the daily media will provide you with the best opportunities.

Others will mainly focus upon distressed sales like “Mortgagees’ Auctions”.

However, by doing that, you are effectively pitting yourself against considerable competition.

And while the property itself may be First-class … you are unlikely to end up with a “top deal”. [Read more…]

Commercial Property: Have You Bought What You Thought?

DueDiligenceWHENEVER you’re looking to acquire a Commercial property for $1 million or more, you should undertake thorough due diligence on it … before making a final commitment.

However, some investors new to Commercial property generally find themselves with a dilemma:

  1. By carrying out their due diligence before making an initial offer, they could end up missing out on the property and running up unnecessary costs; OR …
  2. By trying to make due diligence a condition of the contract, this may offend the vendor and derail the whole deal.

So, let’s explore both of these approaches in a little more detail. [Read more…]

How Quickly The Mood Has Changed For Commercial Property!

Has The Penny Dropped?OVERALL, people appear to have returned from their Christmas break with a renewed sense of confidence — certainly as far as Commercial property is concerned.

In a recent article, I covered the reasons for this change.

However, investors are also being buoyed by the past two weeks of solid economic data — including a welcome boost to Australia’s trade balance, as well as retail turnover increasing by 0.9% during January. [Read more…]

How Good a Commercial Property Investor Are You?

InvestSOME WOULD-BE investors never get around to taking the plunge into Commercial property.

They certainly know quite a lot, because they read plenty of books and regularly attend seminars. But even so, they remain what are affectionately called “Armchair Investors”.

How to Cure Procrastination

There is a certain hesitancy that sometimes accompanies the transition from Residential to Commercial property investing. [Read more…]

The Anatomy of a Commercial Property Deal

SO LET’S GO right back to basics … and just break down a Commercial property investment into its fundamental components.

You see, very few investors seem to spend enough time to fully understand what’s involved.

>>>>>Your Investment = Equity + Debt + Ideas + Time

And you may care to explore each of these aspects in a little more detail. [Read more…]

Commercial Property Investing: How to Uncover a Good Deal

Discovering a Good DealIT’S TRUE … every deal will always be different. But that does not mean you can’t use a series of simple measures, to help you sift the “wheat from the chaff”!

Only then, are those properties entitled to make it through to the next stage of detailed analysis.
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How to Quickly Shortlist Your Properties [Read more…]

Commercial Property Vacancy Rates Move Closer Together

Vacancy Rates are much closer nowTHE NEAR-ZERO Office vacancy rates enjoyed by the mining cities of Brisbane and Perth pre-GFC … now seem to have come back into line with the other capital Cities.

The latest survey released by the Property Council of Australia (PCA) displays a much more even spread for Offces vacancies around the country.

The cooling of the mining sector, coupled with the Queensland floods, has caused a number of key players to rethink their Office space requirements. [Read more…]

Why The RBA Held Fast on Interest Rates … And How That Affects Commercial Property Investors

Interest rates on holdSOME PUNDITS seemed to be genuinely confused, and others even disappointed with?the RBA’s decision at its last meeting.

However, those closely studying what’s really been happening over the past 6 to 9 months were not surprised in the slightest.

Producer Price IndexSure, a weaker Producer Price index (and a benign underlying inflation at 2.3%) certainly gave the RBA plenty of flexibility. [Read more…]

Top-End Commercial Property in Demand

Top-end Offices now in DemandOVER THE PAST several months, I have been recommending you refrain from trying to pick the bottom of the Commercial property market.

And certainly not wait for overwhelming evidence of prices being “on the up”.

Anyway, last week you were probably given the best confirmation you needed in an article by Carolyn Cummins (The Age, BusinessDay: 24 Jan 2013).

In the article, she talked about high net-worth investors having now joined institutional investors & sovereign funds, at the top end of the Commercial property market.

Driven by lower interest rates, demand has increased for health-care properties and large-scale shopping centres; plus traditional offices and industrial property. [Read more…]