Archive for 'Economic Issues'
What Will Happen to Interest Rates
When The RBA Meets Next Week?
Posted on 31. Jan, 2012 by Chris Lang.
The general consensus seems to be that the RBA will further reduce rates by 25 basis points. But can this view be fully justified; and what does this mean for Commercial property investors?
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Commercial Property: Global Influence?
Posted on 23. Jan, 2012 by Chris Lang.
Last year saw $US400 billion in direct commercial property deals worldwide — which reflected an increase of 25% on 2010.
Australia's share of those deals was $6.5 billion in Office towers during last year — with 28% of those purchases being made by overseas buyers.
And this is expected to continue strongly during 2012.
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Commercial Property: What Makes for a Balanced Office Market?
Posted on 19. Jan, 2012 by Chris Lang.
EVERY capital city has both a CBD and suburban Office market. And as you can appreciate, keeping tabs on all the various suburban markets is almost an impossible task for most investors. As a rule of thumb, Office markets are said to the "in balance", when their Vacancy Rate lies between 5% and 7%.
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Is There a Credit Squeeze Looming?
Posted on 17. Jan, 2012 by Chris Lang.
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?
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Success in Commercial Property Comes with Consistent Economic Growth
Posted on 22. Dec, 2011 by Chris Lang.
Melbourne's GDP has grown consistently over the past two decades. Perhaps that's the reason why the shrewd investors are now gravitating towards Commercial property in Melbourne.
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Commercial Property: ANZ Chief Reassures Shareholders of Australia's Strong Position
Posted on 19. Dec, 2011 by Chris Lang.
During every generation, there is generally a structural change in global economic activity. And right now, you are simply witnessing a shift the world's economic centre of gravity.
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Commercial Property Poised to Take Off in 2012
Posted on 13. Dec, 2011 by Chris Lang.
ALL YOU need is a sprinkling of confidence to return ... with and understanding that things are not as bad as you read in some newspapers.
For some time now, I've been trying to explain how the underlying fundamentals for Australia's economy and Commercial property are strong.
And a recent AFR headline "Recruitment boom bucks the trend" (9 Dec 2011, page 41) now confirms that our major law firms are "in the midst of a hiring spree".
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Do Banks Use a Formula When Lending on Commercial Property?
Posted on 08. Dec, 2011 by Chris Lang.
BANKS have a variety of ways of analysing a Commercial property; but there are a few guidelines they all tend to use.
For them, the most important number is the property's Net Operating Income — which is basically rental minus expenses. As simple as that may seem, the calculation can vary dramatically from lender to lender.
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Commercial Property: The Impact of China
Posted on 06. Dec, 2011 by Chris Lang.
LAST week, The Australian newspaper invited three Commercial property experts to respond to the following question:
If China's growth story begins to peter out, what will be the impact on Australia's commercial property market?
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How Can Commercial Property Investors Make Any Sense of the Retail Scene?
Posted on 29. Nov, 2011 by Chris Lang.
Many shoppers still remain hesitant, despite the RBA's recent interest rate reduction. Although, with household savings at record levels ... people may simply be holding back on their main splurge splurge until the post-Christmas sales.
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Be Prepared for Strong Growth in Commercial Property During 2012
Posted on 22. Nov, 2011 by Chris Lang.
The underlying fundamentals for Australia are strong. All you need is a lift in the general confidence level, for our economy to really take off.
So the trick is ... not to be caught by surprise when it do
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