Which sector of the market offers the best opportunity?There are principally three sectors within the commercial property market - Offices, Retail and Industrial. Offices: The current low vacancy rates, provide the greatest opportunity for rental increases, and capital growth, over the next 4 to 5 years. Retail: Melbourne is arguably "over shopped" at the moment, and rentals have been somewhat static. As such, growth will occur, but it will be more subdued than for the office sector. Industrial: New development is becoming increasingly dispursed around Melbourne. Over the past few years, yields have remained relatively high reflecting a preference by investors for other sectors. As demand for Offices and Retail improve (i.e. yields start falling), investors may switch to industrial property. Top - Print How do I go about financing the properties I acquire?Currently, there is a myriad of financing sources in the marketplace. Picking the best one for you can prove a frustrating process. Because of our involvement over the long haul, we can certainly point you to a number of appropriate sources - based on the size and type of property you're buying, as well as the level of borrowings you're after. Generally, this is best handled on a case-by-case basis. Top - Print What factors should I consider when choosing an investment property?The things you need to look out for are: - Enduring Value
- Ongoing Cashflow
- Steady Growth
- Super Growth
- Lending Appeal
- Future Collateral
- Cost Control
- Tax Benefits
You may also care to explore these 8 factors in more detail. You might also like to look at your 12 Criteria and the Property Rating Matrix. Top - Print My Financial Advisor is saying that property has now peaked. Is that correct?Of course you have to be guided by your financial advisor. But is he aware that you are now in the hottest part of an 18-year property cycle? You might just like to recap on this in one of our recent eBulletins ... The other thing you may like to consider is investing say $75,000 into a private syndicate. That would mean you could be part of a $3 million+ property; and still put some of your funds into the share market. If you could be interested, you can read more about syndication ... Do you think that might be worth pursuing? Top - Print Do you simply act as a consultant to give advice?With respect an initial consultation, our usual rate is $480 per hour. However, as an eBulletin subscriber, you would only incur $425 per hour (+GST). And 50% of that fee would be offset against any future acquisition fees you may incur with us. Top - Print What determines my capital growth from an investment property?Your capital growth will basically come from a combination of two separate components: - the rental increases you receive, and
- a firming of your selling yield.
Your rental will naturally increase under the terms of the lease. And it's probably reasonable to expect your selling yield to fall by at least 1% in the run up to 2007/08. What that means is that ... if your rental increases by 10% over a 4-year period, your capital growth could actually be somewhere between 25% to 30% over the same period. Top - Print Can I acquire a $300,000 investment property & receive a 9% pa yield?You're going to find it hard to locate a suitable investment in your price range, for the sort of yield you are expecting. If you can achieve that yield, unfortunately the property is likely to be poorly-located and have little prospect of good capital growth. Perhaps you might like to explore joining a private syndicate. If you would like to find out a little more, just click here and have a read about what's involved. If you feel you could be interested, you can simply register your interest - maybe at the $150,000 or $250,000 level. Once you do that, we'll then send you some more information. Top - Print |
