The RBA appears to be performing a rather fine balancing act.
Its Board knows rising inflation is about to emerge. And this is only temporarily masked by a poor March quarter, following the nation’s flooding earlier in the year. [Read more…]
Insider Tips to Help You Discover How to Succeed with Commercial Property
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From a very early age, Chris always sought to discover whatever the RULES might be for each situation – so he could quickly figure out how to master them. And from there, he has continued helping clients achieve their own Commercial Property success.
Read MoreThe RBA appears to be performing a rather fine balancing act.
Its Board knows rising inflation is about to emerge. And this is only temporarily masked by a poor March quarter, following the nation’s flooding earlier in the year. [Read more…]
Size-wise, as a proportion of Australia’s economy … Manufacturing and Mining contribute more or less the same output.
However, Mining’s investment spend is currently more than three times that being spent by the Manufacturing sector.
All the media attention has mainly been focused upon this disparity. But that doesn’t really tell you the complete story — as you can see from the first of these graphs. [Read more…]
LAST WEEK, I promised to reveal those key Consultants to whom I’d be prepared to entrust my own property deals. So, let’s progress a little further with that.
No doubt you will have experienced your share of problems, when it comes to arranging the finance for a recent purchase you may have finalised.
As you’re probably aware, most vendors are unwilling to enter into a contract in the current market, containing a “subject to finance” clause. Because it would simply tie up their Commercial property, without any certainty of a sale. [Read more…]
AS YOU know, Property Edge Australia is there to help you in identifying and negotiating the actual purchase of your next Commercial property.
However, you still require certain other key consultants, in order to make every deal really work for you.
And those consultants need to be thoroughly trustworthy.
As you can appreciate, I have had the opportunity to work with a quite number of consultants, over the past 40 years. And I’ve quietly put together a close team of those ones, who have really gone out of their way to look after my Clients’ best interests.
Over the next week or so, I will reveal to you who these Consultants actually are — in the vital areas of:
Anyway, let’s make a start on the first one today. [Read more…]
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.
Following the global financial crisis, the extent of trade imbalances has eased somewhat between Advanced Western economies and the Emerging Asian economies.
The gap between China’s huge current-account surpluses and America is out-of-control deficits may have temporarily narrowed. But the IMF believes the massive disparity will return, as world economic activity improves.
The ups and downs of exchange rates and capital movements are seen by the US and the Western economies as a method of ensuring a proper allocation of resources.
Whereas, it seems Asian countries view exchange rate movements as an annoying distraction from controlled expansion of their “home” economies. And amassing foreign currencies is seen as the best protection against a re-occurrence of the 1997 Asian financial crisis.
China’s stated goal of 7% growth over the next five years (plus its dependence upon coal, iron ore, LNG and nickel) will provide enormous economic upside for Australia.
On this basis, China’s contribution to global economic output will rival that of the European Union within five years; and even the US, within the next 10 years.
While Australia’s mining boom may help to create a “two-speed economy” … the flow-through benefits will be felt by everyone — to a greater or lesser extent.
Clearly, the growing mining (and mining-related) sector will need to be physically accommodated.
Similarly, the support services and businesses like … accountants, lawyers and the merchant bankers … will all need to engage more staff. And that means we’ll need to construct more office buildings to house them.
Bottom Line: Until we do that (which can take between 3 to 5 years), rentals for both CBD and suburban Office space will continue to escalate those capital cities where the vacancy rates currently sit at around 7%, or below.
Therefore, right now, that means you should be looking to snap up something in Melbourne, Sydney or Perth. And then, ride the current growth cycle through to 2018.
And the rising $A is certainly making its job easier, by generally cooling activity.
Growth within the Construction industry appears to have fallen to its lowest level in 18 years. Although turnover for mining and processing plants has once again returned to its path of upward growth.The IMF has recently trimmed its overall global forecast — down to 4.2% from 4.3%, for 2011.
The 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.
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…]
Whenever Investors are confused … the Property Market tends to do nothing and simply moves sideways.
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…]
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.
WHETHER YOU ARE an investor or an owner-occupier, there are important factors to consider when purchasing a commercial property.
In a previous article, I mentioned a helpful App to assist in shortlisting potential properties.
Hopefully, you will quickly realise this is not a website for self-promotion.
Rather, everything here has been put together to provide you (as a serious Investor) with the very best insights into what you need to know ... in order for you to succeed with your Commercial property investing.
You see, the deeper your access is to all the key information and the more expert opinions you can learn from ... the more likely your ultimate financial success will be.
That said, you will discover everything you need right here – both readily available, and all in one place.
All the very best ... Chris.
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