Thus one of my FOUR key red flags I use to identify areas which are highly likely to attain decent capital growth over the short to mid term. Ive proved it time and time again over the past 12 years.
re:- The Woolies & McDonalds Principle
- Thread starter kero
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Thus one of my FOUR key red flags I use to identify areas which are highly likely to attain decent capital growth over the short to mid term. Ive proved it time and time again over the past 12 years.
Wow Redwing - going through the archives again I see. This time one dredged up from more than 6 years back !!!
We still have it....and the yield is still pathetically low. No changes out here in the real world.
Tried to sell it, but the skin flint Buyers are worse than the skin flint Tenants if that is possible....and yes it's possible.
They did. But it turned out that you could buy it cheaper somewhere else.I thought Bunnings sold the entire toolkit?
The Y-man
Yeah, probably at Masters Hardware.
Why is that a red flag?
Because you cant miss it when it waving. (read post 5 this thread)
Most big multinationals commission specialised marketing research companies to do the work for them.
They are targeting up coming areas of growing demographic demand for their products and/or services.
You can contact local govts / councils and ask to find out if/what big multinationals currently have development applications or recent approvals in place.
Here's a Nice Link out of my investor's tool box for you that lists world & Australian state & local govt councils / agencies.
I hope this helps.
Bunnings as well as other wesfarmers companies and woolworths has their own fulltime team of people who prepares analysis about the potential store sites. The factors impacting on decision making are:
- Will store make a profit or not in the future?
- zoning or potential for reasoning
- areas' growth potential, establish suburb or already approved subdivisions or other development
- existing competition or potential competition
- shopping centre or freestanding
- car parking and access and visibility to the site
- demographic and consumer habits of the population in the area
- do they already have a store in the same customer catchment area
- is the main competitor likely to be interested in the site or other site in the area
- other retail stores close by
- Will store make a profit or not in the future?
- zoning or potential for reasoning
- areas' growth potential, establish suburb or already approved subdivisions or other development
- existing competition or potential competition
- shopping centre or freestanding
- car parking and access and visibility to the site
- demographic and consumer habits of the population in the area
- do they already have a store in the same customer catchment area
- is the main competitor likely to be interested in the site or other site in the area
- other retail stores close by
My folks are currently selling a home in Nedlands Dazz, as a result ive been following the market a bit more closely over the last couple of months.
Homes definitely appear to be quicker, especially the older but liveable 1012 sqm homes. Could be worth you trying to sell again, the market is quite different to even say 9 months ago.
3 weekends ago went to a couple of home opens in Subi, there must have been at least 30 people there but market is still quite patchy.
We recently had a very small woolworths open in my suburb - its very odd as I've never seen such a small woolworths.
I would equate it with a large corner store - it has about 5 small aisles and a liquor section which is nearly as big as the rest of the shop (perhaps says something about where I live )
Its a stand alone brand new building. Perhaps they are modifying their business model.
As for hardware...you cant go past Mitre10
I would equate it with a large corner store - it has about 5 small aisles and a liquor section which is nearly as big as the rest of the shop (perhaps says something about where I live
)Its a stand alone brand new building. Perhaps they are modifying their business model.
As for hardware...you cant go past Mitre10
In the UK, the arrival of coffee shops, such as Starbucks, is seen as one of the first signs of an area's gentrification.
The other thing that I'd suggest looking for is artists. The general cycle is:
A couple of examples from the UK: The area around Hoxton and Shoreditch went through this process some years back. One of my brother's friends sold a house on Hoxton Square to a boxer, it might have been Prince Naseem, for a substantial profit.
What's been happening more recently is that tech companies have been moving here, and there's a general sense in which London's centre of gravity is moving Eastwards. That might be because the West End is doing the whole superprime thing, and unaffordable to anyone who's not a billionaire or has a source of dubious wealth, or the City is expanding more in Canary Wharf. But if you bought property there ten or fifteen years ago you'd be laughing now.
Similarly in Brighton and Hove. In the mid-nineties it was a bit of a dive, and consequently cheap. I know of a few people who bought houses there on credit cards.
By 2000 it felt as though it was populated by artists and pop-stars. I was there in the early noughties, and it felt like living in an episode of the sitcom Spaced.
I moved out in 2003, and went back there for the first time last year. It's definitely lost a bit of its edge since then. I suspect that the twenty and thirty-something hipsters I knew have settled down and had kids. It's now more designer than quirky.
In the meantime the arts colony has shifted to Hastings...
The other thing that I'd suggest looking for is artists. The general cycle is:
- Artists find a town or suburb that's cheap and run down, but has character. They start to move in.
- Things improve, and the area becomes increasingly hip and gentrified.
- Richer people, looking for a cool place to live being to move in. This drives up prices, which in turn displaces the artists and who migrate elsewhere.
A couple of examples from the UK: The area around Hoxton and Shoreditch went through this process some years back. One of my brother's friends sold a house on Hoxton Square to a boxer, it might have been Prince Naseem, for a substantial profit.
What's been happening more recently is that tech companies have been moving here, and there's a general sense in which London's centre of gravity is moving Eastwards. That might be because the West End is doing the whole superprime thing, and unaffordable to anyone who's not a billionaire or has a source of dubious wealth, or the City is expanding more in Canary Wharf. But if you bought property there ten or fifteen years ago you'd be laughing now.
Similarly in Brighton and Hove. In the mid-nineties it was a bit of a dive, and consequently cheap. I know of a few people who bought houses there on credit cards.
By 2000 it felt as though it was populated by artists and pop-stars. I was there in the early noughties, and it felt like living in an episode of the sitcom Spaced.
I moved out in 2003, and went back there for the first time last year. It's definitely lost a bit of its edge since then. I suspect that the twenty and thirty-something hipsters I knew have settled down and had kids. It's now more designer than quirky.
In the meantime the arts colony has shifted to Hastings...
Woolies just started building where I have an IP, knowing this was going ahead was a definite factor in the decision to purchase.
Woolies don't necessarily care about whether an area is going ahead or not - they are concerned about market share ie who dies with the most toys wins. Why else would they bother to put a 2500 m2 box in several $2 towns in the middle of nowhere other than it is less of a drive to Woolies than to go to the next major town which has Coles (even if it causes a major over supply in the area). They will go out of their way to purchase development sites just to stop competition. According to the AFR, the ACCC is currently investigating such practices.
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