CONCERN OVER HIGH INFLATION is what is causing the RBA to continue raising interest rates.
So the real question is … will the latest Budget be responsible for adding to inflationary pressures?
Anyway, let’s quickly pick apart the critical issues of the latest Budget – as far as they relate to Commercial property. [Read more…]
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.
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.
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.
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.
Engage a good property advisor, lawyer, accountant, builder and property manager to help you navigate the process of buying and managing a Commercial property.
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.
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.
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.
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 …
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.
There will be some investors, who may initially take a cautious approach. [Read more…]
THE QUESTION OF Due Diligence is an interesting one.
There are two schools of thought. Some people believe they should undertake all the due diligence investigations BEFORE actually making an offer and finalising the commercial terms of the deal.
There are a couple of issues here – number one is: Due diligence, done properly, costs money. Therefore, my approach has always been not to spend money until you have control of the property. [Read more…]
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…]
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…]
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…]
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:
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.
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.
COMMERCIAL PROPERTY OWNERS juggle so things every day … from negotiations with potential tenants to tracking income and expenses.
BMT’s free,easy-to-use MyBMT portal is something every commercial property owner should have in their tool kit – because it allows them to manage their investment and depreciation needs with ease. [Read more…]
IN ANY NEGOTIATION there will always be times when you need to think on your feet. To help you, here are a few tips you might care to add to your Toolbox.
AS YOU ARE probably aware, the basic tools for marketing your property are the Advertisement, the Brochure and the Board.
However, do you realise these need to be treated as merely the gateway to your property’s webpage or the Information Memorandum? Their sole purpose is to capture the attention of your prospects and then compel them to seek further information.
You see, any form of Marketing is actually a 3-step process. [Read more…]
