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...]

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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

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

How to be Creative When You Need a New Tenant

15 May, 2013 by Leave a Comment

OfficeVacancyAt some point, your Commercial Tenant will simply move on. It just happens from time to time.

THEREFORE, what we'll do here is explore some creative ways to address this … AND still maintain your sanity, at the same time.

But no matter which approach you adopt, there are several things you always need to do. [Read more...]

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Filed Under: *Expert Panel, Investment Opportunity, Opportunities, Property Insights, Training Material, X~Factors Tagged With: , , , , , , , , , , ,

The Tax Man and You

14 May, 2013 by Leave a Comment

TaxDepreciationBEING A COMMERCIAL property owner, the Australian tax system allows you to claim a deduction from your income.

And that relates to the wear and tear upon the structure of a commercial property, and the depreciation of the plant and equipment items it contains.

Depreciation is available to all property owners who generate an income from that property. But the secret is to make sure you maximise these deductions, to boost your bottom-line cash flow.

By maximizing your tax depreciation deductions every financial year can make a huge difference to the tax you pay. And it may even result in the ATO paying money back to you, at the end of the year.

A few facts about Depreciation for Commercial Properties [Read more...]

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Filed Under: *Expert Panel, Investment Opportunity, Opportunities, Tax Depreciation, Taxation 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...]

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

Commercial Property … With a New Look and Feel

1 May, 2013 by Leave a Comment

Book-Stack3

BY NEXT WEEK, everything will appear different!

No, I'm not referring to the Commercial property market. Rather, how it will be presented to you.

Right now, this website is undergoing a total refurb. Very much like one of your investment properties you've been holding for a while.

And straight away, you will notice two key differences:

  1. The articles will be presented in a modern "Newsy" format; and
  2. There will also be a wider range of topics covered — by a team of expert guest contributors. [Read more...]
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Filed Under: Opportunities, Property Insights, 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...]

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Filed Under: Economic Issues, Global Scene, Investment Opportunity, Market Sectors, Offices, Opportunities Tagged With: , , , , , , , , , , ,

Commercial Property: The Interest Rate Dilemma

17 April, 2013 by Leave a Comment

Interest-RatesSHOULD YOU be fixing the interest rate for the term of your investment loan … or simply running with the best variable rate?

Lurking behind that question is another concern: Will interest rates fall any further; and if so, by how much?

The Case FOR a further Interest Rate Cut [Read more...]

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Filed Under: Economic Issues, Finance, Global Scene, Interest Rates, Opportunities, Stability, Using Debt, Your Exposure Tagged With: , , , , , , , , , , , ,

Does a Solid Sales Increase in February Mean the Retail Sector is Now Back?

10 April, 2013 by Leave a Comment

Strip Centres are still strugglingYOU WILL quickly find that there are two different schools of thought:

  1. After much hibernation, Retail property is set to surge again.
  2. With the high dollar, and growth in online shopping, the Retailing has much catching up to do.

Despite Australia having been mostly sheltered from the global financial crisis, retailers (especially in strip shopping centres) have been doing it rather tough.

Before the GFC, Retail property yields had plummeted. In some cases, as low as 3.5% per annum — with investors clamouring for what they saw as "sexy property". And they believed values would always increased dramatically. [Read more...]

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Filed Under: Economic Issues, Global Scene, Market Sectors, Opportunities, Property Yields, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , , , ,

Commercial Property: Getting The Numbers Right

3 April, 2013 by Leave a Comment

Getting The Numbers RightOVER THE PAST few weeks … we've spent some time talking about the Anatomy of a Commercial Property Deal … how to to find Top Commercial properties and … the need for proper Due Diligence.

However, it's probably worth showing you how to establish what funds you actually have available to invest upfront.

It's certainly not a complicated process — but a vital one , nonetheless.

You see, many investors tend to overestimate (and will often even underestimate) the amount of the funds they may have available. And that immediately impacts upon the value of the property you can acquire. [Read more...]

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Filed Under: Finance, Investment Opportunity, Opportunities, X~Factors Tagged With: , , , , , , , , , , ,

How Do You Find Top Commercial Property Deals?

27 March, 2013 by Leave a Comment

Being creative will deliver you Top Commercial property dealsMOST INVESTORS believe keeping an eye on the daily media will provide you with the best opportunities.

Others will mainly focus upon distressed sales like "Mortgagees' Auctions".

However, by doing that, you are effectively pitting yourself against considerable competition.

And while the property itself may be First-class … you are unlikely to end up with a "top deal". [Read more...]

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Filed Under: Investment Opportunity, Negotiating, Opportunities Tagged With: , , , , , , , , , , ,