Last Friday, I attended the annual Commercial & Industrial Economic Forecast Luncheon.
And Dr Frank Gelber (director of BIS Shrapnel) kindly provided is perspective on the Australian economy and the Melbourne Commercial property market — looking forward for the next 5 to 6 years.
Probably the most pleasing aspect was … that his views will were pretty much in line with what I’ve been telling you here, for the past six months or so … [Read more…]
Last week, you looked at the reasons why lenders view Commercial property in a different league to Residential property, when it comes to finance.
And then, we moved to the various aspects Commercial lenders look at as far as Risk is concerned.
More importantly, just how these aspects will determine whether or not they will actually lend against the actual property you are looking to purchase.
However, what you really want to know is … [Read more…]
Over the past few weeks, you have been reading articles about the various Office markets around Australia.
As such, you would now be aware of how each capital City compares, in relation to its … Vacancy rates … Rental levels … and expected Capital growth.
However, most of that commentary has been focused upon CBD Offices. And as a result, people have been enquiring about just how the Suburban Office markets are also likely to perform, over the next few years.
Clearly, a rent differential exists between the City and Suburban Office markets. And obviously, that rental gap will also vary, as you move around Australia. [Read more…]
Commercial property finance is one of those aspects probably the least understood — and therefore, can lead to some are rather poor decisions by investors.
The most important thing you need to grasp is that there are basically no hard and fast rules about the various factors like … the leverage that is available … costs associated with Commercial loans or … the actual lending criteria most financiers and adopt.
When it comes to Commercial finance, everything has to be viewed in relation to the strength and size of each particular deal. [Read more…]
Last week’s article entitled: “OK … What’s Really Going On?” seemed to capture the interest of quite a few readers.
So, tell me … how many people have you spoken with lately, who are fearful about the European and US debt problems?
And have you stopped to find out how few of them realise that the problems confronting those countries may actually be GOOD news for Australia.
Perhaps it is worth explaining how that could possibly be — because there are several things you need to appreciate. [Read more…]
Wherever you live, you tend to believe (and will happily tell people) that it is undoubtedly the best place to live.
Really, it’s just human nature.
But when it comes to investing your hard-earned dollars into Commercial property … your decisions should be governed by something more than a warm and fuzzy feeling.
For the past four or five years, Victoria has led the nation in economic growth; and it is one of the few enjoying a net growth in migration from other states.
Furthermore, the latest ABS figures now confirm Victoria’s continued growth and job creation — leading all-comers over the past 12 months.
And you’ll also notice most of the various service sectors are currently outstripping the mining sector, as far as employment numbers are concerned. [Read more…]
Last weekend in the Financial Review, Andrew Clark began his article (on page 52) with the words:
“Australians don’t know if they’re in the middle of a pause that refreshes or the dullness before the deluge.”
That about sums up the general feedback I am receiving at the moment, from clients and colleagues alike.
Clark felt this probably stems from a combination of …
Presumably, this was behind the RBA’s decision to keep the cash rate on hold until next month — pending more economic data in the coming weeks.
According to the IMF … in spite of all the recent turmoil, the outlook for global economic growth appears quite rosy moving into the new financial year. [Read more…]
Today, we will be taking a brief look at the Industrial sector.
Investors have already been snaring some quality Industrial properties — as rentals have begun to climb, following a reasonably static period over the past five years.
As you can see from the table, this increase in activity has been reflected in the dominance of Developers bringing new stock onto the market.
Plus, you’ll notice that Private investors have emerged as the major category of buyers for Industrial property. [Read more…]
