Monthly Musings.

Thoughts on the Real Estate market and beyond.

BUY or SELL? Will an election move the market?

Aug 31 2017

Traditionally the period immediately prior to a general election has seen activity in the market stall. That’s not confined to the real estate market. Activity in most commercial markets slows dramatically. Even in the time we were in the food industry, sales more than halved in the weeks leading…

The Expedio refurbishment process

Aug 31 2017

As we purchase older buildings (and that can include as young as 10 years old) and as tenants move on,we embark on a refurbishment process. This not just about making the property more attractive to lease. It's much easier to undertake basic renovations, such as paint and carpet, when the building…

Precedent is the refuge of the lazy – Gary Hamel

Jul 30 2017

If you are looking for opportunities in business, then often  the best places to look are companies and industries that constantly trot out the mantra ”that’s the way we always do it”. Because those are the companies and industries that are likely sleepwalking into the future. They can be easy targets.…

All animals are equal, but some animals are more equal than others

Jul 30 2017

If we listened to some agents we would not ever have to look at a building. Just multiply the floor area by the going rate for the area and we would arrive at the price. Or take the rental and the prevailing accepted yield and we have the value. But the market doesn’t work quite that way because some…

Market Comment August 2017

Jul 30 2017

It’s obvious by now that all the banks have reduced their appetite for lending. This is being manifested in different ways – changing loan to value ratios, and being more difficult are just two of these.

Some banks are flat out saying no to new business – irrespective of the quality of the…

Opex increases under the radar

Jul 01 2017

They have largely kept under the radar, but changes to the Fire Service Levy  (Fire Emergency Levy from 1 July) have the potential  to  increase OPEX for industrial tenants substantially. As residential Fire Service levies are capped, the increases to residential owners  are minimal, but commercial…

The ratbag tenant problem

Jul 01 2017

It’s not just residential. It’s not just P cooks. It’s a fact of life (unfortunately) that there are ratbag tenants. Not many – but there are some.

Ultimately it is landlords  who have to deal with tenants who mistreat premises, and are consistently late in paying. Agents may find the tenant,…

Observations from a far off place

Jul 01 2017

We have recently been refreshing our attitude with travels in the lush and green byways and narrow lanes of rural England. With ample time to ponder as we pedal two wheels, the concept has been to ride the countryside, staying off major roads as much as possible. With the aid of a GPS this has taken…

The golden goose wears drag

Jul 01 2017

Well, perhaps not drag. But often golden geese can be well disguised. Sometimes the best opportunities are those which don’t necessarily look like the best opportunities.

One such opportunity  is leasing. We know that leasing , particularly of smaller units, does not pay nearly  as well for…

Market Comment June 2017

Jun 01 2017

There certainly seems to be a tightening in availability of bank finance. The media would have us believe that this is primarily due to the Australian banks taking their capital back to Australia. But whatever the reason, anecdotally we are hearing of instances where banks have backed away from financing…

The rise of the useless class

May 23 2017

One of the topics we sometimes ponder in our leisure time is the future of many in the work force as technology renders increasing numbers of jobs obsolete. Artificial intelligence, algorithms and automation are replacing people in many areas. Whilst there may be new jobs created, many will require…

The serious task of qualifying buyers/tenants

May 01 2017

We have previously written about the role of the agent as an intermediary between vendor/landlord and purchaser/tenant. And we have also expressed how much we love to pay commissions – because paying commissions means we are doing deals.

And in this whole process, one of the aspects we hate…