Industrial Real Estate

 

 

 

Industrial property is used for industrial purposes.  It sounds simple, but it comes in all shapes and sizes and covers a huge range of business types.

Industrial properties can generally be broken down into three sizes: small, large and enormous.

Small industrial sites include single or double-storey buildings zoned for industrial use. These often have flexible interior space, usually a mix of warehouse and office space. ‘Flex’ spaces are used by small businesses such as mechanics, research laboratories and start-ups.

Large industrial properties include medium to large warehouses and factories that are designed to manufacture or store goods. They include distribution companies such as third party logistics (3PLs).

On the larger end of the scale are the ‘big box’ industrial spaces. These enormous industrial spaces are used as logistics and distribution centers that hold and then distribute finished goods to stores and/or directly to customers.  If you think of the type of warehouse Amazon would have, you will get the idea.

Higher rents = higher yields

One of the attractive aspects of investing in industrial property is the higher rental incomes and yields (the annual return on investment) they offer.

Industrial property is usually valued in relation to the square meters available and can offer yields of 8%, compared to say just 4%-5% on a house.

Another advantage is that most industrial leases include fixed annual price increases, which are often linked to CPI.

Longer Leases

Industrial tenants are usually willing to sign long lease agreements (up to 10 years in some cases) that provide investors with much greater security than a typical residential lease. 

 

 

 

GREEK FASHION DESIGNERS IN SYDNEY

GREEK FASHION DESIGNERS IN SYDNEY

A key challenge in the fashion industry is bridging the gap from production to procurements. A group of 24 Greek fashion and accessories designers and brands are presently reducing that distance by unveiling their summer 2017 offerings to a previously uncharted market – as far as their work goes – Australia.

The medium being used is the Greek Style Council, a podium for presenting and encouraging Greek designers in Australia, and the first action is a pop-up, wholesale showroom which unbolted at La Porte Space’s premises in Sydney on October 17. The ambitious project is the brainchild of Helen Tirekidis. A second-generation Greek-Australian, Tirekidis has originated a long way in Australia’s fashion industry, holding positions at several luxury houses including Chanel, Jean Paul Gaultier, Issey Miyake, Longchamp and Giorgio Armani.

“It was clear to me for a long time that there was astonishing talent in Greece and I was always a little frustrated that this was little known [in Australia],” said Tirekidis in an exclusive interview. “For years, I always heard about the state of the economy, the doom and gloom. But what was bizarre to me was that there was not much talk about what was really going right in Greece. The real trigger for me was that I observed the correlation between the downturn in the economy and a super-fast upsurge in creativity.”

The Australian market has made huge jumps forward in fashion in recent decades – a relative desert in terms of luxury brands in the late 1970s, the country now hosts the gamut of high-end designer stores as well as familiar fast-fashion chains.

According to Tirekidis, Australian consumers (the country’s population is nearly 24.5 million) are great explorers who follow shopping developments in Europe closely, while the local industry has now taken its strategies into cyberspace. Does this new wave of Greek creativity have what it takes to content the desires of today’s clients who, according to FashionUnited, spend 28.5 billion Australian dollars annually on clothes and footwear?

“I feel we are moving into a new era, one which is focused more on emerging designers,” said Tirekidis. “There is a glut of extravagance brands and fast fashion and not much focused on the in-between ‘new, innovative emerging talent’ per se. I sense that for customers who appreciate fashion, it’s increasingly about having something that not everyone has and that is well crafted at the same time.”

A few days prior to the pop-up venture’s opening, Tirekidis was already in discussions with The Iconic, Australia’s largest online store, while, along with buyers, representatives from print media outlets as well as bloggers and influencers were expected to become acquainted with the designers and brands on view.

Buying an Affordable House in Australia, Particular for the First-time Buyers is Simple?

Buying an affordable house in Australia, particular for the first-time buyers is simple?

How long can it take for a couple or a single person to deposit the money for their first home? If we consider the couples, then possibly, they might take 2.8 years to gather their fund for the 10% deposit in Australian territory and when they firmly fix 20% deposit then they need to wait for 4.9 years.

Whereas, when we talk about a single person, then probably they would take 4.5 years to save for the first 10% deposit or 8.4 years to go for 20% deposit. These are the precise round figure and hopefully, the assumption regarding the price won't change.

The median property price is basically taken from CORE LOGIC RP data, from 1st march till the end of May 2016. The income levels and the median property price do vary; the cost of property in NSW and in the state is quite high.

The brainstorming analysis has shown that the biggest trouble for the first-time buyers is that they need to save about 20% from their average salary, defined by the Australian Bureau Statistics.

Apart from this the first time buyers also need to take care about the Stamp duty, which is another common cost.

I feel that the major problem is the pretty rapid house price growth that has emerged up from last 4years. So, if you are planning to afford a house in NSW, then you might need to wait for a little longer period as there no royal road to get it.

The singles earning average salary may take a longer period than the couple's deposit when compared. So, being a couple or with the group of people or with family can easily fulfill your dream to afford a house at the high pace.

So, you can see both the faces of the coin. Now, it's up to your wish that how you would make the adjustments for your dream nest.      

  

SYDNEY HOUSE PRICES AT NEW HIGHS

Lower interest rates and a sturdy local economy push Sydney’s median house price to $1,068,303, while Melbourne prices attain $773,669.

Median house prices in Sydney and Melbourne have hit all-time highs and are expected to keep rising for the remaining year, new property figures show.

Domain chief economist Andrew Wilson believed lower interest rates and a strong local economy had fuelled house price growth in Sydney, while unit prices also sustained to rise regardless of new construction.

 “A relative shortage of listings and amplified interest from investors will continue to drive price growth in these capitals for the remainder of 2016.”

This has seen a number of property owners make hundreds of thousands of dollars by flipping properties purchased in the past few years.

It has also pushed home ownership further out of reach of first-time buyers. And experts say this is likely to get even tougher with more price growth on the horizon.Despite efforts to cool the property market, Sydney house prices have run away yet again, growing at their strongest rate in over a year. 

“A lot of the price growth is due to the local Asian market, where there are still buyers willing to pay top price … there’s also not a lot of stock,” said Mr. Levitan.

He pointed to a boost in supply and a tightening in the guidelines for lenders as what will see property prices grow at lower levels than those seen in 2014 and 2015.

New guidelines from the Australian Prudential Regulation Authority unconfined on Monday need lenders to ensure borrowers are able to afford repayments on a 7 percent interest rate when assessing whether they’re eligible for a loan. This means somebody buying a median priced house would need to be able to pay $6040 a month on a 25-year loan. Assuming they had a 20 per cent deposit.

SYDNEY AUCTION MARKET RESUMES THIS WEEKEND

The Sydney weekend auction market resumes on Saturday following last weekend’s break in activity due to the Easter holiday break. Only 56 auctions were listed last Saturday with a reported clearance rate of 76.6 per cent.

Sydney recorded a boost in the auction clearance rate of 78.8 per cent at the weekend, which was elevated than the previous Saturday’s 76.6 per cent, but again well enough to beat the record of the same weekend last year which was 70 per cent.

Although arising as a good result for sellers, Saturday’s rate was to some extent down on the levels recorded over the past two months, which have established an 80 per cent+ benchmark on most weekends.

The Sydney auction market continues to produce deviating results with inner-suburban, higher-priced regions recording strong results compared to outer suburban areas – particularly to the west of the city where results continue to be subdued.

Lower mortgage rates have been a key catalyst in the rise of the late winter, early spring market, following official rate cuts in May and August.

Auction activity in Sydney will keep on rising through to the Queen’s Birthday holiday break in June, which will signal the beginning of the quieter winter auction market. Although auction listings are well below last year’s results at the same time, inner suburban clearance rates remain hopeful for sellers. However, weaker buyer activity is set to remain in lower-priced outer suburbs to the west, reflecting falling investor activity and recent strong prices growth subduing the market.

SYDNEY NIGHTLIFE CURFEW PROTESTING MARCH

Thousands of residents of Sydney, Australia came on streets to protect against the lockout laws introduced by the state government. They carried funny posters supporting the demolition of the law on demand of the people. They marched united with decorative posters with proud and for a purpose.

The huge protest came just two days after anti-lock out law campaigners #KeepSydneyOpen released a report stating that since the introduction of the 1:30 a.m. curfew on entering bars, pubs, and clubs in the city, alcohol-fuelled assaults are increasing — rather than decreasing, as lawmakers would hope.

Opponents say the laws are killing off the city’s nightlife with venues being forced to close and hundreds of jobs disappearing along with it.

"It's been an absolutely fantastic day and not only are we protesting the lockout laws and fighting for a better Sydney that stays open late and is more diverse and inclusive but we’re also showing Sydney’s best version of itself," says Tyson Koh, founder of Keep Sydney Open campaign.

“The lockout laws have seen Sydney’s nightlife leached away while the violence and aggressive atmosphere has just spread to other areas,”

The government requires central Sydney venues to turn people away from 1.30am, serve last drinks by 3am and ban the sale of takeaway alcohol after 10pm.

A number of measures were introduced following a number of one-punch deaths and assaults during alcohol-fuelled nights out.

Dr. Tony Sara told reporters in Sydney the number of victims of alcohol-related violence turning up at St Vincent’s Hospital had fallen by one-third since the laws were introduced.“All assaults have gone down by 32% and the number of severely injured persons has also gone down,” he said.

There have not been any deaths from alcohol-related violence or trauma since the lockouts, and there have only been three patients admitted to the intensive care unit for such violence, Sara claimed.

However, he said relaxing the laws for live music venues “could be a good idea” if proven effective through a small-scale trial.

The premier is already boomed the social media, with nearly 13,000 people commenting, mostly negatively, on his Facebook post in support of the government’s policy as the debate over the city’s nightlife grows increasingly heated.

Sydney: The Housing Bubble Trouble

Sydney: The Housing Bubble Trouble

Housing Bubble, one word that has been a headache for the Australian Real Estate market for quite a while now. The sharp increase in housing prices has affected the whole country and some cities seem to be more affected than the others. Furthermore, Sydney is the most risk-prone ones. Looking at the numbers, Sydney is currently one of the top four cities in the world that are most affected by the Housing Bubble trouble.

Experts say Sydney seems to have had an approximate 50 average percent increase in the house prices that are within the bubble risk zone. The city that was 4 years back somewhere near the bottom of the list of Asia-Pacific cities and has now managed to top the same.

Since 2012 the city has seen a sharp 45 percent increase in the prices. Though this year, the increase seems to be quite slow. Adding more to it, foreign investors, especially China have ignited the prices even more.

It’s a wave of global correction and Sydney seems to be sitting in the front row. The city has seen an increase of around 3.6 percent this year which seems slow for a year but at a cumulative view, this gets larger. The housing bubble seems to be not bursting anytime soon. As a matter of fact, not only Sydney but the whole Australian Real Estate Market seems to be facing the major blow and needs to handle the situation soon. For more information and updates about the same keep following us.