Insider Tips to Help You Discover How to Succeed with Commercial Property
WILL COMMERCIAL property investors and businesses be starved of ready funds during 2012?
The banks seemed to be protesting about the increased cost of offshore borrowing. And using that as their excuse for not wanting to pass on any future RBA rate reductions in full.
But are they really telling you the whole truth? [Read more…]
Exactly why have industrial companies around the world been slow to recover? And why did everything look so promising … and then suddenly, seem to grind to a halt?
Perhaps some insight into this dilemma was provided by the IMF’s recent World Economic Outlook.
According to Oliver Blanchard (its chief economist), there are the dual influences of a slowdown in advanced Western economies; and the overall financial uncertainty.
During the GFC, companies allowed their inventories to run down. Then, with a hint of global recovery, those same companies began replacing their depleted inventory levels. [Read more…]
Pick up any newspaper, and you’ll find most commentators saying the Resources boom is back on once again.
Also, people are pointing to China as our guiding light going forward.
But is this really true? And if so, why?
Here’s a short Video giving you a quick insight into whether there really is any substance to what we’re being told.
[Read more…]
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…]
The US Federal Reserve is concerned that consumption is still being underpinned by government funding.
And so, even though stimulus measures may be winding down … the Fed has decided to maintain interest rates at their historically low level.
It seems that households and businesses are preferring to repay debt, rather than spend to encourage investment and growth.
In Europe, there is still simply not enough trust between Banks to lend to one another. And that means credit is extremely tight. Right now, Central Banks are stepping in to lend to private banks, in an attempt to free up funds to boost economic activity.
China still remains the bright light with its growing demand for of the commodities Australia exports.
The IMF actually predicts that the Asian economy (which includes Australia) will be 50% larger within five years.
And it will then represent about a third of the world’s trading activity.
h2. The Implications for Commercial Property
Already, major Asian sovereign wealth funds and property trusts are starting to target Office towers within Australian capital cities.
In fact, foreign buyers have invested around $1.7 billion during the past 12 months — representing about 70% of the purchase is made.
While this won’t directly affect the smaller private buyer … it will force everyone to move down a price bracket ought to — looking for better value.
Therefore, as yields quickly firm at the upper levels … this will soon have a ripple effect down through more modestly priced Commercial investment property.
Couple this with rising rentals, as the supply of Office space starts to fall around Australia … and now would be the perfect time to position yourself, ready for the next growth cycle.
FINANCIAL INSTITUTIONS HAVE a range of methods for evaluating commercial properties, but there are some general guidelines that they typically follow.
One of the key numbers that banks focus on is the property’s Net Operating Income (NOI), which is essentially the rental income minus expenses.
WITH EVERY NEGOTIATION, you always need to be thinking on your feet. And here are several simple Tips to help you do just that.
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.
