Peter Vines joins Mark this week on Property Insights. The Managing Director of Ray White Commercial Western Sydney, Peter has over 25 years experience in real estate in both Sydney and Europe. As a third generation commercial real estate agent, his transactions include commercial and retail investment properties, development land, and special-use assets, particularly in the Western Sydney region.
Drawing on his extensive experience, Peter brings his invaluable specialist knowledge to this Property Insights discussion of commercial property investment with Mark Bouris.
Key Takeaways:
- Commercial valuations are facing challenges globally, especially in the United States. This scrutiny of commercial property transactions is driven by low yields and the need for higher returns.
- It’s vital to understand the cash rate and its impact on commercial property values. Mark and Peter break down the need for returns that exceed the cash rate.
- Understanding the pricing and valuation of commercial properties is crucial. Mark and Peter emphasise the importance of conducting due diligence.
- It’s important to consider the impact of risk in commercial property investments. Mark and Peter identify key risks and stress the importance of considering additional factors beyond return percentage.
- Take associated expenses into account. Expenses can significantly impact the net return on commercial property investment. Some costs such as Land tax have seen significant increases in certain locations.
- Wondering where to start? Peter suggests Childcare centres, affordable housing and boarding houses may be attractive investment opportunities.
