When Should You
Fix Your Interest Rate?

17 September, 2010 by Leave a Comment

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…]

Filed Under: Economic Issues, Global Scene, Investment Opportunity, Property Cycles, Using Debt, Your Exposure Tagged With: , , , , , , , ,

Retail Returns to Favour

31 March, 2010 by Leave a Comment

Retail property has had some press coverage of late.

It has shown a surprising improvement, given global events and the hike in interest rates.

Westfield (a good retail barometer) reported a strong mid-year result from its Australian shopping centres.

RetailMar2010As you can see from the table, Vacancy rates have fallen significantly and Yields firmed — particularly within the strip shopping centres of Melbourne.

And furthermore, rentals have also started to climb … as the economic recovery has given shoppers confidence to start spending again.

Currently yields ranging between 4% and 6.5% across these various strip centres. And would indicate that investors are returning to retail property once more.

If you are planning to acquire some Retail property, you need …

    1. A strong tenant (well-established, or proven backing);
    2. A long lease (5 years+); and also
    3. Solid rental reviews (CPI or at least 3.75% pa).

With these in place, you should be able enjoy a good long-term investment.

Filed Under: Economic Issues, Interest Rates, Investment Opportunity, Property Yields, Retail Sector Tagged With: , , , , , , , , , , ,

Your Opportunities Moving Forward?

21 January, 2010 by Leave a Comment

There has been much written already about the global financial crisis.

But in layman’s terms, it occurred as a result of capital imbalances occurring throughout the world. And nowhere more so, than in America.

The principal cause can be found with the high levels of US debt-funded consumption. And in order to better understand this distortion, you might care to consider the following figures …
US Share [Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates, Investment Opportunity, Offices, Property Cycles, Residential vs Commercial, Your Exposure Tagged With: , , , , , , , , , , , , , ,

Your Handy Economic Clock

27 November, 2009 by Leave a Comment

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…]

Filed Under: Economic Issues, Interest Rates, Offices, Property Cycles, Your Exposure Tagged With: , , , , , , , , , , , , ,

The Future for Interest Rates

24 November, 2009 by Leave a Comment

The RBA’s underlying rate of inflation rose by 3.5% in the year to September — less that what the markets and the RBA itself expected.

However, this figure needs to fall significantly for the RBA will put interest rates on hold again.

Rate Rises

Rate Rises

With low inventories and industry capacity-use levels up over 80% once more … you could well see the economy reach full capacity sometime early in 2010.

And this was highlighted in last week’s job figures — showing employers took on 24,500 new workers in October, compared with the 10,000 expected.
[Read more…]

Filed Under: Economic Issues, Industrial Sector, Interest Rates, Property Yields Tagged With: , , , , , , , , , , , , ,

It’s both Good News … and Bad News!

31 August, 2009 by Leave a Comment

Business Investment

Business Investment

Government statistics show that business investment rose by 3.3% during the three months to June — most of it accounted for by a massive 20% surge in Victoria.

This increase is the latest confirmation that Australia has entered its recovery phase — emerging from the global turmoil, without experiencing a technical recession.

h3. But what does this mean?
[Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates Tagged With: , , , , , , , , , , , ,

Do You Remember Back Then … ?

5 May, 2009 by Leave a Comment

In an earlier article, I gave you a bullet-point comparison of how things are NOW … compared to the early 1990s … in relation to Commercial property.

Anyway, here are some very revealing graphs — based upon figures from the RBA.

Now & Then

Now & Then


Back in the 1990s, the banks were burdened with a heavy corporate exposure; and interest rates were up around 18% pa.
[Read more…]

Filed Under: Economic Issues, Global Scene, Interest Rates, Property Cycles, Retail Sector Tagged With: , , , , , , , , , , , , ,