Commercial Property Funds

[sash]

I agree....the number of CP in the newspapers is like a flood!

Dazz won't be happy..LOL!

Cheers
Sash

An acquaintance who is involved in financing stuff like that tells me that within 2-3 months there will be a lot more commercial property at fire-sale prices.

At present there is a glut of comm prop on the market, but v. few buyers, with more to come. I'd guess forced sellers will have to discount to ~50% of their book value to move them.

 

[ILoveProperty]

Keithj
Thanks for all the info. Life saver.

 

[grossreal]

thanks for that.
if you see any comm in that area let me know.
always looking.
and we have funding.
have spoken to a few groups but always looking for more.
this is our harvest time as they say

 

[nonrecourse]

Softly Softly with the D word

What you are seeing will translate down to all property investors as the squeeze on cash flow continues to accelerate. The RBA says Australia will narrowly avoid a recession

The nonsense continues in the press and the so called experts at the reserve bank who only a few months ago were raising interest rates when blind freddie could see we were headed for a fiscal tragedy.

But never mind Dudd in Canberra and here in Victoria Bumbie have it all figured out. We are going to have a carbon trading system so that we ensure what's left of business in Australia moves overseas. In Victoria they have brought in legislation for all commercial, Industrial and any building that contains two or more sole occupancy Units, a building maintenance program to slugg us nasty landlords

That should drive a few more tens of thousands of small Victorian Businesses to the wall when landlords jack up the rents to pay for it.

As I have reiterated in earlier posts we will see commercial properties drop 50%, residential drop 40%, the reserve will be forced to lower interest rates to 2% when the Aussie dollar crashes to 38 cents in 2009/2010 and home mortgages will be 4.5% but by then the four pillars will be hoarding cash as overseas we will see thousands of smaller banks with capitalizations of less than four billion falling over.

I did say we'd see the ASX at 3500 by the end of October many months ago but closest that came was around 3780?

In our social circle when that D word is used it is followed by a nervous giggle. People are starting to think what a few months ago was unthinkable

 

[Telejazzer]

Just reviving this thread

I've been reading this thread and found it interesting.

I'm hoping to continue this conversation on the current economy and thoughts on REITs in the Asian market.

 

[Intrinsic_Value]

I have a question, why is it commercial property funds are been slaughtered on the ASX? Am I missing something?

For example, stock code OIF (Orchard http://www.orchardfunds.com/Products/Listed Products/Orchard Industrial Property Fund.aspx ) .

Is there something I'm missing? Is woolworths likely to default on their property leases?

From memory i was looking at this during the GFC.
Orchard are the bottom of the pile in regards to 'quality management'.

That doesnt mean there arent trading opportunities, but why would you want some 'c' grade property manager running your property portfolio. (which is effectively the case if you are a shareholder)

 

[Intrinsic_Value]

As I have reiterated in earlier posts we will see commercial properties drop 50%, residential drop 40%, the reserve will be forced to lower interest rates to 2% when the Aussie dollar crashes to 38 cents in 2009/2010 and home mortgages will be 4.5% but by then the four pillars will be hoarding cash as overseas we will see thousands of smaller banks with capitalizations of less than four billion falling over.


In our social circle when that D word is used it is followed by a nervous giggle. People are starting to think what a few months ago was unthinkable

ah nonrecourse, you bring back some beautiful memories.

And here within lies the key message for those of you that read the D&G reports, ask those D&G'ers how to profit from the situation.

Its easy to prophise D&G, much harder to come up with a mechanism to make money from it.

 

[Dazz]

I agree....the number of CP in the newspapers is like a flood!

Dazz won't be happy..LOL!

Cheers
Sash

Never saw this back in '08 sash my dear.

Sorry to disappoint you, we are still here and have gone on from strength to strength. Who would have thought.

You'll have to roll up your Schadenfraude and re-direct your LOL some place else.

Cheerio.

 

[coastymike]

Sash

I think with the amount of due diligence Dazz does on his commercial property purchases he will be fine.