As markets such as Sydney and Melbourne begin to come off the boil, investors in those areas have been offered some advice... Sydney's industrial market to benefit from supply issues, residential cooling...
Sydney, Melbourne investors urged to minimise risk, maximise performance
As markets such as Sydney and Melbourne begin to come off the boil, investors in those areas have been told to use this period of time to take the necessary steps to ensure their portfolios continue be profitable.
Rather than use the cooler periods those markets are entering as an excuse to take a break, investors should be focusing their efforts on minimising risk and doing what they can to help their investments perform.
One action recommended by Phillip Almeida, director with Performance Property Advisory, is for investors to consider some minor improvements to their properties that may increase both their value and rental power during what would be an otherwise flat period.
“Now is the time to consider refurbishing one or more of your properties. Many investors are reluctant to refurbish, afraid of over-capitalising and not getting their money back,” Almeida said.
Sydney's industrial market to benefit from supply issues, residential cooling
While Sydney’s residential market may be in the midst of a slowdown, the city’s industrial and commercial sectors are predicted to perform strongly over the coming years.
According to LJ Hooker’s latest Industrial Market Monitor, Sydney’s industrial real estate market can expect to see price growth of around 10% over the next two years.
While solid, that growth will fall short of the 9% increase seen during 2015 and the 6% seen over 2014.
“Price growth of 10% over the next two years in Sydney may appear moderate for investors following the gains of 2014-2015, but it’s still healthy,” head of LJ Hooker Commercial Christopher Mourd said.
“Much of the new supply has pre-commitments so, for landlords who want to divest, now is a great time to capitalise following generous capital growth over the past two years,” Mourd said.
“That’s where a lot of other brokers are falling down. They might be providing the client’s home loan, but for financial planning, the client talks to a planner with affiliations to other brokers, and before you know it, that relationship has been diluted.”
Daniel Green Green Finance Group, Top 10 Independent Brokerages 2015
