Where Bunnings builds, I buy.

[Peter Parker]

Gentrification, yes. That sounds great. Beachside value-investments like Frankston & Seaford come to mind here. The final approval from the Premier's office means that the Marina will be built for sure (the progressive mayor expects construction to start as early as this year) and that will attract a different sort of resident. As the area improves, a wealthier class of resident will move in and this may well be the gentrification you refer to.

A bit further up Chelsea is experiencing big changes.

Empty shops along the highway now - 6 months ago none were empty. Not Quite Right opened up to provide a 3rd supermarket, but has now gone bust. Meanwhile a new Safeway is being built as well as spaces for 8 specialty shops. A new Subway has opened but I've never seen a customer in it so it's bound to close. Shops to close include a $2 shop, stationer and a gift shop which has a landlords notice on the door.

All the closures could be transition or gentrification or just recession and retail space oversupply. I'm inclined to suspect the latter.

 

[enricofermi]

A bit further up Chelsea is experiencing big changes.

Empty shops along the highway now - 6 months ago none were empty. Not Quite Right opened up to provide a 3rd supermarket, but has now gone bust. Meanwhile a new Safeway is being built as well as spaces for 8 specialty shops. A new Subway has opened but I've never seen a customer in it so it's bound to close. Shops to close include a $2 shop, stationer and a gift shop which has a landlords notice on the door.

All the closures could be transition or gentrification or just recession and retail space oversupply. I'm inclined to suspect the latter.

Its terribly painful to own property in a blighted area. Sadly, small scale strip shopping has all but died in Australia. You could call it progress. Nowadays, a certain critical mass seems to be required before shoppers flock to a particular location. One or two shops in isolation just won't do the trick anymore. The old mum and dad shops in many suburbs are facing ruin as they cannot compete with major retailers, particularly those in huge commercial clusters. In bayside Melbourne I guess there will be a huge sucking sound (thank you Ross Perot for the quote) as retail gets sucked into the Frankston mega-hub. Thats fine if you live in Frankston or own a car that can get you there. Not so fine if you are elderly and can't make you way there to do your shopping.

 

[pawprints]

Yes I bought my first IP in a town where all of a sudden Harvey Norman, KFC, Maccas, Big W, Woolies, and subway popped up Bunnings are desperately trying to secure land to build there I have been told. (Currently only a really crappy, overpriced Mitre 10 there ).

As for Chelsea, I live near there and must say have been a little shocked to see all the stores closing down. Its almost ghostly!

 

[R377]

so simple yet so true. let bunnings spent the time and cost in researching.

mt barker, taree and pt kennedy/rockingham have all been listed as hotspots

 

[depreciator]

Hey Scott
Where in St Peters is the Ikea going in? I lurve Ikea and can spend hours and hours there.........

The old Tempe tip site. It's really going to change that area because where Ikea go, other businesses will follow to capitalise on the weekend traffic.

I read that a walk around the new store without taking any shortcuts will be 2.5klms.

I have to admit some of their stuff is pretty good, but I will do anything to get out of going there.

 

[Monopoly]

Funny how (in years gone by) when the local grocery store was also the local butcher, baker and/or post office and still the town didn't get any bigger!!!

Fast forward to modern thinking and so too is born a solution....

In today's business you gotta THINK BIG!!!!!

 

[Dazz]

So....instead of buying a house near where Bunnings build....buy the Bunnings store itself ??

 

[WinstonWolfe]

So....instead of buying a house near where Bunnings build....buy the Bunnings store itself ??

Just make sure you have a good PM and lawyer....Our Wesfarmer tenant is high maintenance.

 

[Player]

There's been a few for sale in recent times. I wonder if the trust is divesting some assets or will be wound up at some point so they become tenant only businesses?

How far off is the Woolworths roll out of the competitor stores to Bunnings?

 

[Monopoly]

So....instead of buying a house near where Bunnings build....buy the Bunnings store itself ??

Well, if you can get it, why not?? Could prove far more profitable than just a single dwelling out in the sticks right??

Seriously though, does it really matter what the store is?? The mere fact that there are businesses going up is a clear indication that a need has been identified, and someone is going to turn that need into profit by simply setting up their business there, so good on them I say!!!

 

[WinstonWolfe]

I wonder if the trust is divesting some assets or will be wound up at some point so they become tenant only businesses?

Probably a combo of woolies and macro risk...

Makes me wonder how wise woolies' timing is.

 

[Sunfish]

Seriously though, does it really matter what the store is?? The mere fact that there are businesses going up is a clear indication that a need has been identified,

Myers has finally committed to setting up shop half a k from me. The net effect on property values is that it is not arresting the slide.

 

[Sunfish]

Funny how (in years gone by) when the local grocery store was also the local butcher, baker and/or post office and still the town didn't get any bigger!!!

Fast forward to modern thinking and so too is born a solution....

In today's business you gotta THINK BIG!!!!!

A year ago I brought the sale of a commercial building near me to the forum's notice. Top drawer tenants, ideal position, a mere $6-7 mil with returns about 8%.

I don't have that sort of money. Do you?

 

[Monopoly]

A year ago I brought the sale of a commercial building near me to the forum's notice. Top drawer tenants, ideal position, a mere $6-7 mil with returns about 8%.

I don't have that sort of money. Do you?

I may, or I may not but that's not the issue here. What I'm trying to say is that BIG businesses such as Myer, Woolies, Harvey Normans, Bunnings etc (the BIGGIES) are the ones that are helping things along because they provide the things that people want around them, ie. the variety of food choices, the doodads, the fashion, the materials to build/renovate their homes etc. It's not your little guy in a boutique corner store that will help push up the price on your property, it's the commerical heavy weights that will contribute to this.

So when I say in today's business you gotta think big, I'm inferring that you have to position yourself in the BIG boys camp. Sure if you have the money to buy into the business and reap some of the very lucractive profits made by such corporations - FANTASTIC; if not, then I don't think it's such a bad thing to be a passive winner in property valuation stakes, wouldn't you agree???

 

[Monopoly]

Myers has finally committed to setting up shop half a k from me. The net effect on property values is that it is not arresting the slide.

Myers alone won't change things. It takes more than a single multi-storey building with departments bursting at the seams with retail therapy items to attract people to an area, and for property values to travel upward as a result. People don't live for, need or want just whitegoods, fashion, household brick-a-brack; they want and need a variety of goods and services, conveniences, infrastructure etc to make a place attractive and (more importantly) liveable.

 

[Deltaberry]

The Bunnings stores can be bought via the Bunnings A-REIT, a sector I follow very closely. Reality is all the A-REITs in Australia have been smashed heavily except the Bunnings, and that's due to the strong franchise.

But then again I'd like to remind you that the ABC A-REITs (ie the childcare) was one of the best performing A-REITs for a while. Until ABC stopped paying rent...

 

[Hados]

McDonald's have recently announced they are building in my local town- population approx 10,000 people (with surrounding districts included). That, along with the Plaza extending to house more specialty shops, a 50+ block retirement village on the go and the largest single employer continually expanding... I like where my investments are headed

 

[Gools]

How far off is the Woolworths roll out of the competitor stores to Bunnings?

Player, the second half of next year is the ETA for the first store to open. I think from memory it is on the northern fringe of Melbourne.

Gools

 

[Legs]

What about if Target where going to build a Big Full target store in a 10,000 pop town with 15 specialty retail shops around it? Does that fit the picture.
The local Target country store had the highest retail gowth for the entire COUNTRY and this has prompted them to open a Full Taget Store..


Anyone find this interesting enough? I will supply the country towns name. It was in the local paper this week so maybe I will scan that article too if there is sufficient interest.

 

[Peter Parker]

What about if Target where going to build a Big Full target store in a 10,000 pop town with 15 specialty retail shops around it? Does that fit the picture.
The local Target country store had the highest retail gowth for the entire COUNTRY and this has prompted them to open a Full Taget Store..


Anyone find this interesting enough? I will supply the country towns name. It was in the local paper this week so maybe I will scan that article too if there is sufficient interest.

Starts with L (based on recent council meeting minutes)?