Be Wary of Using Bank Bills

20 May, 2013 by Leave a Comment

BankBills
Part 1: An Understanding, plus the Hidden Costs

WHENEVER YOU ARE financing a commercial property investment or a business, the types of funding can be broadly classified into two categories: bill facilities and non-bill facilities.

The Concept

Bill facilities are charged as a margin over the inter-bank lending rates, published each day in the Financial Review as commercial bills; while non-bill facilities are charged as a straight interest rate.

The funds for these facilities may also be raised through the money markets, but they are priced on a simple interest rate basis over a loan term. [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: *Expert Panel, Finance, Industrial Sector, Market Sectors, Offices, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , , ,

To Caveat … Or Not to Caveat?

17 May, 2013 by Leave a Comment

Caveat

BEFORE EVEN beginning to answer this question, you first need to understand what a Caveat involves.

A Caveat is a document, which any person with a legal interest in a Property is able to lodge with the land registry (or titles office).

After registration, a caveat note appears on the Title giving prospective purchasers or financiers notice that a third party might have rights over the property.

The process of preparing, lodging and having a caveat registered with the land registry is quite straight forward. Accordingly, caveats are commonly lodged over properties without obtaining legal advice. [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: *Expert Panel, Industrial Sector, Legal Matters, Market Sectors, Offices, Opportunities, Retail Sector, Training Material, X~Factors, Your Exposure Tagged With: , , , , , , , , , , ,

Melbourne Office Market is Holding Its Own

16 May, 2013 by Leave a Comment

Melbourne-OfficesMELBOURNE is Australia's second-largest office market, and has remained relatively resilient since 2010.

A range of factors supported this, including … limited new supply and growth in absorption (driven by Australia's economic recovery during that period).

Underlying Strength

On the demand side in particular, the size and diversity of Melbourne's white-collar workforce was a key reason supporting the market's resilience, although on-going staff reductions in the finance and government sectors is lessening demand.

The Melbourne CBD office market was challenged through the first half of 2012. Although additional new supply was largely pre-committed, remnant back-fill space saw vacancies rise from 5.2% in January to 5.6% in June.

Despite some softening, CBD vacancy rates remain the second tightest nationally and below their long term average.

Subdued economic conditions are anticipated to continue challenging the sector with a softer labour market stalling rental growth and increasing sublease availability. Investor demand for CBD assets, including from international institutional investors, remains strong with constrained activity a function of limited supply rather than weak demand.

Vacancy Levels

Vacancies within the suburban office market have stabilized (currently at around 7.0%) having peaked at 8.0% through the GFC. Recent supply has been limited due to restrictive financing conditions, however new committed supply is emerging in the near-term around the inner east.

Diminished business confidence in the wake of continued economic uncertainty is impacting tenant demand. However, decentralization of large public sector users continues to buffer suburban markets.

Bottom Line: The Melbourne office sector will continue to be challenged in the near- term by domestic and international economic uncertainty.

And although the market is currently outperforming long term averages, anticipated softening in labour market conditions and lingering international economic downside risks may dampen short-term growth prospect.

Bio-Morton

?

0
0
0
0
0
0
0
or copy the link
Filed Under: *Expert Panel, Economic Issues, Global Scene, Investment Opportunity, Market Sectors, Offices, Opportunities, Valuer's Viewpoint Tagged With: , , , , , , , , , , ,

Proper Due Diligence is Vital

13 May, 2013 by Leave a Comment

DueDiligence2

MANY PEOPLE will make the mistake of not carrying out a due diligence study BEFORE they acquire their Commercial properties.

But this can end up becoming a very expensive process — because you'll can often miss out on the property, if someone else snaps it up, before you?re able complete your study.

Therefore, the secret lies in ensuring you negotiate a deal ? where your due diligence occurs AFTER you have tied up the property, under a binding contract of sale.

Anyway, here are the 5 Key Elements you need to investigate … [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: *Expert Panel, Due Diligence, Industrial Sector, Market Sectors, Offices, Opportunities, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , ,

As a Commercial Landlord, How does the Personal Property Securities Act Affect You?

9 May, 2013 by Leave a Comment

You can now protect your Personaal Property

TO BE HONEST, most investors have little or no idea of the added protection for Landlords, with respect to any personal property you make available to tenants — such as office furniture, or any other equipment.

Many of you would be aware that real property has historically been registered by the land title (or in some states, the registration of the lease). Whereas, personal property has not been registrable.

However with the creation of the Personal Property Securities Register, personal property can now be registered — and therefore, your rights fully protected. [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: *Expert Panel, Legal Matters, Offices, Opportunities, Your Exposure Tagged With: , , , , , , , , ,

How Will the Global Scene Impact Commercial Property?

24 April, 2013 by Leave a Comment

The disparity in global Office Yields makes Australian Commercial property very appealing to overseas investors.YOU NEED to look "behind the curtain" … and not allow yourself to become concerned by the recent headlines. Just remember: Media companies need to make sure their newspapers sell.

Last week, share market speculators drew breath rather sharply … as China's 3-month growth in GDP to March, came in at "just 7.7%".

True, this was down from the expected 7.9%; but it was still in line with China's overall growth, throughout 2012.

However, let's get real: Compared with anywhere else in the world, 7.7% is clearly an enviable figure. [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: Economic Issues, Global Scene, Investment Opportunity, Market Sectors, Offices, Opportunities Tagged With: , , , , , , , , , , ,

How Quickly The Mood Has Changed For Commercial Property!

13 March, 2013 by Leave a Comment

Has The Penny Dropped?OVERALL, people appear to have returned from their Christmas break with a renewed sense of confidence — certainly as far as Commercial property is concerned.

In a recent article, I covered the reasons for this change.

However, investors are also being buoyed by the past two weeks of solid economic data — including a welcome boost to Australia's trade balance, as well as retail turnover increasing by 0.9% during January. [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: Economic Issues, Global Scene, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector Tagged With: , , , , , , , , , , ,

How Good a Commercial Property Investor Are You?

6 March, 2013 by Leave a Comment

InvestSOME WOULD-BE investors never get around to taking the plunge into Commercial property.

They certainly know quite a lot, because they read plenty of books and regularly attend seminars. But even so, they remain what are affectionately called "Armchair Investors".

How to Cure Procrastination

There is a certain hesitancy that sometimes accompanies the transition from Residential to Commercial property investing. [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Residential vs Commercial, Retail Sector, Training Material, X~Factors Tagged With: , , , , , , , , , , ,

The Anatomy of a Commercial Property Deal

27 February, 2013 by Leave a Comment

SO LET'S GO right back to basics … and just break down a Commercial property investment into its fundamental components.

You see, very few investors seem to spend enough time to fully understand what's involved.

>>>>>Your Investment = Equity + Debt + Ideas + Time

And you may care to explore each of these aspects in a little more detail. [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: Finance, Industrial Sector, Interest Rates, Investment Opportunity, Market Sectors, Offices, Opportunities, Retail Sector, Training Material, Using Debt, X~Factors Tagged With: , , , , , , , , , , ,

Commercial Property Investing: How to Uncover a Good Deal

20 February, 2013 by Leave a Comment

Discovering a Good DealIT'S TRUE … every deal will always be different. But that does not mean you can't use a series of simple measures, to help you sift the "wheat from the chaff"!

Only then, are those properties entitled to make it through to the next stage of detailed analysis.
.

How to Quickly Shortlist Your Properties [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: Economic Issues, Finance, Industrial Sector, Investment Opportunity, Market Sectors, Offices, Opportunities, Property Yields, Retail Sector, Using Debt Tagged With: , , , , , , , , , , ,

Commercial Property Vacancy Rates Move Closer Together

13 February, 2013 by Leave a Comment

Vacancy Rates are much closer nowTHE NEAR-ZERO Office vacancy rates enjoyed by the mining cities of Brisbane and Perth pre-GFC … now seem to have come back into line with the other capital Cities.

The latest survey released by the Property Council of Australia (PCA) displays a much more even spread for Offces vacancies around the country.

The cooling of the mining sector, coupled with the Queensland floods, has caused a number of key players to rethink their Office space requirements. [Read more...]

0
0
0
0
0
0
0
or copy the link
Filed Under: Market Sectors, Offices, Opportunities, Your Exposure Tagged With: , , , , , , , , , , , ,