Global Progress?

The IMF has recently trimmed its overall global forecast — down to 4.2% from 4.3%, for 2011.

Global GrowthThe emerging and developing economies are tipped to grow by 6.4% (with China’s growth being over 9%).

Whereas, the various advanced economies are expected to grow by a subdued 2.2%, on average.

However, any double-dip recession is considered most unlikely — as investment and domestic consumption has replaced the building up of inventories.

According to the IMF: “Investment in machinery and equipment is already showing strength in a number of advanced economies.”

Nonetheless, spending and investment in most advanced economies will be constrained by households replenishing their savings; and banks remaining reluctant to lend freely to businesses. Plus, the US housing market still languishes.

Overall, the lack of business investment (and therefore employment growth) will adversely impact on tax revenues. And thereby, make government debt reduction programs a slow process.

On all counts, Australia will continue to enjoy solid growth — relative to other advanced economies. And this will provide ongoing pressure for interest rates to rise, over the next three years.

All the more reason to lock in your interest rates long-term … for any Commercial property investments you intend to make.

When Should You
Fix Your Interest Rate?

On Wednesday, I put up this post about whether or not to fix your interest rate, when purchasing a Commercial property. Only to find there was a problem with streaming of the Video.

Hopefully, that’s now been resolved; and so let’s try Take 2.

The simple answer to the question of timing is … when most Investors are not giving it much thought.

Like right now!

Anyway, here’s a short Video to explain my logic for saying this. Hopefully, it will give you a “helicopter view” of where things will head, over the next 5 years. [Read more…]

“Doing Nothing Will Cost You!”

Whenever Investors are confused … the Property Market tends to do nothing and simply moves sideways.

Confusion Reigns

Confusion Reigns


You observed that when the GFC first struck.

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…]

Commercial Property Cycles

How do you ever understand them?

Before talking to you about Commercial property, let’s take a quick look at Investment Cycles in general.

Investment CycleA 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…]

“Capture Your Firm’s Full Value”

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…]

“Things Can Change So Quickly”

Share of Trade

Share of Trade

Have you stopped to think just how things have changed over the past 25 years?

Just take a look at the global trade figures for the United States, Japan, Germany and Britain.

After the United States, China is now the world’s largest economy. However, it is currently the largest exporter; while being the second-largest importer.

Here’s a cunning question you might care to pose at your next dinner party.
[Read more…]

Your Baby-Boomer Opportunity!

Whenever you go through a major structural change within society or the economy … opportunities will always emerge.

But you’ll find that Baby Boomers won’t be retiring — well, not in the conventional sense. Most will leave their long-time employment, to establish some type of small consultancy business.

In the past, many well-known firms simply evolved as a result of one generation following the next into the family business.

Traditional Family Business

Traditional Family Business

Invariably, sons (and even daughters) left school to join their parent’s firm. It was a handy way to ensure easy succession; and stood Australia in good stead throughout the 1900s. [Read more…]

A Strong Finish to 2009

By early December 2009, sales of Commercial property in Melbourne’s CBD had almost reached $1 billion — according to a report prepared by Jones Lang LaSalle.

Apparently, Melbourne office sales (for buildings over $10 million) totalled around $998 million — while in Sydney, it had reached $444 million.

Sales may well have topped the $1 billion mark by the end of December, because this strong activity resulted from private investors — particularly, in the region of $50 million.

And following another recent survey, more than half of Colliers’ client said they were expecting to see further growth in 2010.

In the suburbs, strata Office demand remained strong — with smaller owner-occupiers seeking Offices close to shops and main arterial roads.

Your Handy Economic Clock

Over the years, you have probably seen various economic clocks explaining the different phases, and their relative timing.

Economic Clock

Economic Clock

Anyway, I came across this rather useful one the other day.

As you’ll see, it is actually a “Multi-asset Investment Clock” — in that you have all the sectors displayed together: Shares, Property, Resources and Interest rates.

Furthermore, if you click on it … you’ll see the clock confirms Australia is midway through its Recovery phase.

h3. And the timing for Commercial property? [Read more…]

Are You Passing Up A Truly Great Opportunity?

Only every 18-20 years do you get the chance to take advantage of the Commercial Property market, when it’s in a state of flux!

As such, this year’s full-day Property Workshop (on Saturday 4 April) is probably even more important than in past years — to help you to gain that upper hand.

But remember, the “Early Bird” discount expires — if you are not enrolled by this Sunday.

Therefore, if you haven’t done so already … make sure you grab your self a seat over the weekend.

“Early Bird” Discount Ends on 15 March

This year’s annual Property Workshop may not be until Saturday 4 April … but the “Early Bird” discount ends this weekend.

It’s being held at the Athenaeum Club in the Melbourne CBD.

And given the opportunities that are starting to emerge in the current market … have a read of what you’ll cover, and then make sure you grab yourself a seat at the Workshop.