RECENT RESEARCH SUGGESTS we are going to need 490,000 m² of new warehouse space per annum over the next couple of years – just to keep up with the current rapid consumer demand. This is the equivalent of about 80 football fields!
But do these big sheds make a good investment for those looking to invest in commercial warehousing? [Read more…]
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…]
INTERESTINGLY, the Industrial property market in metropolitan Melbourne still remains the largest in Australia.
The market has evolved significantly over the last two decades — largely underpinned by the strong growth in supply chain sectors (ie: the transport, logistics and distributions sectors).
In addition, there has been significant infrastructure investment, population and workforce growth … along with the entry of major institutions and developers. [Read more…]
ONLY RECENTLY, I flagged the emerging opportunity being provided by Industrial property. But I felt it was important for you to understand the underlying reason for that.
In a nutshell, it comes down to our persistently high dollar.
In last weekend’s Financial Review (page 24), Joanna Heath posed the following question:
Can you name Australia’s second-largest export?
She went on to point out that it’s not … coal, gas or wheat. Instead, it is actually Australian Commonwealth Bonds! [Read more…]
I THINK it was management guru, Tom Peters, who came up with probably the best advice on how to overcome procrastination — stemming from the need to have everything perfect BEFORE taking action.
And even though his advice may have originated in the 1980s … it certainly still holds true today, when it comes to Commercial property investors.
Tom Peters’ simple strategy was: “Ready … Fire … Aim!” [Read more…]
BECAUSE banks have been reluctant to fund speculative development, very little new Industrial space has come onto the market over the past few years.
Demand on the other hand has remained fairly steady; and it’s now increasing.
And this will cause rentals to rise over the next few years — as there is only a modest amount of space in the pipeline. [Read more…]
OVER THE PAST few weeks, you have read the 5 Common Myths About Commercial Property.
And also covered in some detail the 5 Reasons Why Serious Investors Prefer Commercial Property.
Therefore, it’s probably time to explore two other issues, which inexperienced property investors often see as being major problems. [Read more…]
AS YOU WILL quickly discover, finding suitable Commercial property investments comes down to a numbers game. And interestingly, many people consider these current times to be a buyers’ market.
However, as a serious investor, you will have found it difficult to identify many really top-notch properties right now. And at the moment, this is probably your #1 concern. [Read more…]
IT’S INTERESTING how many investors seem to “graduate” to Commercial property, after first starting out with residential property.
But when you think about it … that’s probably an understandable progression.
Once you grasp even the basics of Commercial property, you quickly discover its NET yield is 2 to 3 times that of residential property. But more importantly, your tenants seem to stay 4 to 5 times longer. [Read more…]
There is no doubt, you can certainly accelerate your overall return from Commercial property, by gearing up with a loan.
Even so, you should FIRST make sure that you can say “Yes” to each of the following questions. [Read more…]
IF YOU have invested in the share market, you would most likely be familiar with the so-called “Investment Clock” — which attempts to show how the economic cycle influences equities.
In essence, an over-heated economy is followed by rising interest rates and falling share prices. Then, as the economy declines interest rates start to fall and share prices rise again.
Some analysts have tried to devise a similar “clock” for Commercial property. But unfortunately, the results have generally not been useful. [Read more…]
