Commercial Property and The “Property Clock”

A recent survey by the Australian property institute (API) shows that the East Coast property market, all sections commercial and residential, at the bottom or near the bottom of the property cycle. They demonstrate this by using what’s called a property clock. What is a property clock? Typically surveys like this use property clocks to show where they believe the market to be. They usually run like this: Noon to 6 PM is a downswing and 6 PM to midnight is upswing. It’s interesting to …

Why choose commercial property over residential?

Why choose commercial property over residential? So why choose commercial property over residential? Obviously this is the question every residential investor asks… whenever they are considering the transition across to commercial property. However, you will quickly discover the reasons are rather compelling. Reason #1: Your tenants stay for longer For the most part, you find residential tenancies will be on a month-by-month basis… maybe 6 months, perhaps for a year if you’re lucky. Whereas commercial leases will tend to range between 3 and 5 years …

Commercial Property shares better than residential -AMP’s Shane Oliver

Commercial Property shares better than residential -AMP’s Shane Oliver by Larry Schlesinger The longer term outlook for Australian residential investment property is “messy”, with price growth likely to be constrained because housing is “expensive” and offers very low returns compared with shares and commercial property, says AMP Capital chief economist Shane Oliver. “Housing is expensive on all metrics and offers very low rental yields compared to all other assets except bank deposits and Government bonds,” Dr Oliver wrote in a new analysis paper following the …

Who’s Really Investing In Commercial Property

Since the global financial crisis there has been a decrease in commercial property prices, resulting in higher yields. This has attracted a growing number of investors to consider commercial property as an appealing addition to their portfolios. Calculating a strong return Part of what is attracting new investors is the proportionally high yields that can be achieved from commercial property investments. A yield is calculated by dividing the property’s net yearly rent by the purchase price. Divide the net yearly rent by the purchase price to calculate the return on investment. So, …