Shopping Centre – Strategic Factors
Shopping Centre – Strategic Factors
The success of retail investment property and particularly the Retail Shopping Centre depends on the key factors such as:
the size of local customer markets
the type of local customer and their spending habits
the level and nature of the average family income in that market area
the growth of the local community
the size and location of nearby competition properties, and
the exposure and access the subject property gets to roads and transport systems
The property investors owning retail property should keep a close eye on future of other Shopping Centres locally and any expansion or change they are to experience. The local planning approvals office should be monitored for any pending approvals which change the zoning of the properties in the region, and any approvals of new developments that could impact the way the community use other property locally.
So why do this? You are trying to protect your cash flow and the future of your property. Without customers, the rent and leases for your property will deteriorate. The levels of market rents in your property are underpinned by customers. You can sue a tenant that is not paying rent required under a lease, however the matter is much larger, and a poorly performing tenant can be the first sign of something much larger impacting the greater property.
Being sensitive to customers and tenants in a retail property is a major part of market awareness. When financial difficulties arise with one tenant it pays to check its origins and review the impact on the greater tenant mix in the property.
Property rental is precious and must be protected. The rental income generated on a retail property depends mainly on these internal and external factors.
the demographics and sentiment from the local and more distant community
the performance of local and national economies
customer ease of access and use of the property
customer acceptance of the property to satisfy shopping needs
the rental cash flow
the net income resulting after property operational costs
lease documentation type, terms, and stability
the mix and placement of tenants relevant to the traffic areas and entry points across the property
the clustering of tenants near each other to extend the spending of the customer
Any new investor to a retail property would assess all these issues with great scrutiny and diligence. They will impact the sales turnover figures for the property. If the shopping centre keeps turnover statistics for the tenants and customer counts from the entry points to the property, the figures will also be invaluable to landlord property analysis.
Here are some other things to consider in your property plans and strategy.
Anchor Tenants in the property should be well known in the community and support growth of ongoing trade for both themselves and the specialty tenants
Look for tenants that can achieve high sale volumes and support percentage rentals above the base rentals
Look for lease documents that support reasonable achievable rent levels and see if they have attractive escalation clauses that can be reached by the tenant without threat to occupancy and stability of trade
Some net rent lease documents will pass through a large percentage of operating costs of the property to the individual tenants thus removing the pressures from the Investor. This will provide protection to the Investor of any inflationary pressures which can occur in the future.
Retail investment property brings good returns to the investor providing they take an interest in the property future and base today’s decisions on tomorrow’s property performance. This property performance should give due regard to the relationships between tenants, landlord, customer, and community. That equation will optimise the property opportunity.…
Best Penny Stock to Buy – Turn $1,000 to $1,000,000 Through 3 Easy Steps Strategy!
Best Penny Stock to Buy – Turn $1,000 to $1,000,000 Through 3 Easy Steps Strategy!
One of the key advantage of penny stocks are that they require minimum capital to invest with. As most of us have limited funds for investment, it is critical that we are able to find a good stock that is low in price to start our initial investment.
Step 1: Look for Good performing Company
It’s vital that for every investment, we need to do our due diligence in understanding the business and performance of the company stock that we’re going to invest in. This is in line with Warren Buffet, the most successful stock investment guru, strategy in investment. The three key areas of study are:
a. Business model – Does the product or service has durability? Does it have competitive advantage?
b. Top management – Do they focus on integrity? Do they believe in the business or only for their own pocket?
c. Company financial performance – what’s the return on shareholder’s equity? Is it consistent? What is their long term debt against earnings?
Step 2: Time Your Investment
As the saying goes, ‘buy when the stock is low and sell when it is high’. You’ll need to keep track of the history of the stock price. With the correct technical analysis, you’ll realize when the stock is at its lowest. This could be due to a one-off negative market sentiment which is temporary or a structural change due to industry recession. These are the best time to enter the market as there will be a turnaround when these temporary negative sentiments are over.
Step 3: Time Your Exit
When the market is over-hyped, it’s a good chance that the next doom will be coming soon. Smart investors like yourself will need to exit the market and consolidate your funds so that when the next down time come, you’re all ready to repeat your money making stock investment again. A simple rule of thumb is to compare the company price to earnings ratio over the past years and if it hits a record high (way over the norm), it’s a signal that the market has overpriced the stock value of the company and its time to exit!
Thank you for reading this article. I hope that it has helped you in finding the best penny stock to invest and see exponential grow in your funds!…
Gold Investment, a Profitable Idea
Gold Investment, a Profitable Idea
The general state of the global economy pushes more and more businessmen and ordinary citizens to the land investment in gold objects. They give up risky investments and buy coins and jewelry made of the precious metal.
U.S. Mint sold 92,000 ounces of American Eagle coins last month, four times more than in 2007, according to Financial Times. Also in other countries a strong increase in sales of gold objects has been reported.
The main reasons for people to invest their money in gold during crisis would be keeping their value over a longer period of time, devaluation of the national currency, but also of other currencies, inflation, and low supply and demand. These reasons should be enough to consider investing or at least trying to find out more information about gold and related markets.
The current economic crisis has made gold price increase by up to 25% in the recent months. Thus, economy experts believe that it would be a perfect time to invest in gold. Compared to money or other valuables that pass through the process of devaluation over time, gold retains its value and also has a great importance in the global economic circuits.
Meanwhile, the U.S. dollar, the most important currency on the stock market, influences the gold quotation. Economists have observed that every time the dollar reaches minimum values, gold is more expensive.
According to analysts, in 2009, the dollar should have depreciated because of Barack Obama’s financial sector support plan. A lot of money added to the market lead to a devaluation of the dollar and thus increased the value of gold.
Another reason to invest in gold can be found in history. Gold has an inverse correlation with other financial instruments and this can be observed since the ’70s. At that time, there weren’t so many good investment opportunities, and following a wrong investment could have been devastating and cost you a lot of money. However, the ’80s and ’90s have brought great benefits for various portfolios, but have been weak for gold.
Since 2000 we are going through a favorable period for gold investment, and fairly weak for investing in other financial instruments.
According to a study by Pricewaterhouse Coopers, almost 75% of mining companies exploiting the gold deposits expect gold prices to go up until the last quarter of 2011, and mining company representatives estimate that gold prices will range between $1400 and $300 an ounce. The others think that the increase of gold prices will stop at $1500.
Although nobody can say for sure what will happen in the market, analysts believe that gold price will continue to rise and there are no signs that it might cheapen.…
Spending Less and Gaining More
Spending Less and Gaining More
My sister is consistently buying department brand makeup and dropping ridiculous loads of unnecessary cash. I brought her attention to the fact that she could be buying her $50 facial concealer off of eBay for $10 plus 2 dollar shipping and handling. Lets say she buys that $50 concealer facial concealer every month. If my sister is making this $50 monthly purchase she is spending around $600 a year on facial makeup alone. Yikes! Lets bring the reduced cost to $12 with this glorious invention called eBay. She is now spending $144 a year on her makeup. It’s still extravagant, but it’s a lot better! I have successfully saved my sister $456 a year with a small step. In this article I hope to shed some light on tiny little saving tips that could add up to big amounts in your bank account.
eBay
Instead of going out and purchasing that $3000 laptop, see if you can find it on eBay first. There is an option to select only new and unopened items when you are searching for your products. If you are looking for a warranty on your product, skip this option and go to the store. I have saved HUGE amounts eying something in the store and running home to check the price on eBay.
COUPON SHOPPING
I know this is redundant to say, but coupons save a lot of money if you know how to use them. Every time I go shopping; I make absolute sure to Google coupons for that specific store in case there are any quick print outs. A lot of stores are providing printable discount cards on their websites. For example, if you decide to go to Macy’s, be sure to do a quick Google search for “Macy’s coupon” before you head out the door!
FREEBIE SITES
I love free samples. Who doesn’t love free stuff? A lot of sites are aimed at taking your e-mail and contact information for spam, but I have found a few good ones that provide true daily deals. I like and .
SKIP THE FAST FOOD
I know it hurts. Letting go of those daily iced coffees broke my heart as well. Two small caramel macchiatos from Starbucks were coming out to $8 daily. That is $56 dollars a week which comes out to around $240 a month. Is it really worth it? How much do YOU spend on fast food? Do the calculations for weekly spending and it may shock you.
BE THRIFTY
Let go of your pride and check out some consignment shops or flea markets for your shopping sprees. I have found some seriously nice stuff for very low low amounts. Unless you have very materialistic friends, I doubt anyone is going to be secretly judging or questioning the authenticity of your purse.
SELL UNUSED JUNK OR HAVE A YARD SALE
As the saying goes, one mans trash is another mans treasure. If you have any unused electronics laying around that you don’t see yourself using, sell them. I have taken old parts out of unused or broken computers and sold them for decent amounts. Someone also bought a junky old exercise bike off of me for $60. is a great place to get rid of unwanted stuff.
START YOUR OWN BUSINESS
My friend got the clever idea to buy old broken Xbox 360s off of eBay and repair them for money. He has made a livable income off of this idea. If you have marketable skills, use them! In closing, there are lots of great ways to make money. It’s all about using logical thinking and making wise decisions. In this economy, one cannot afford to pass up good opportunities and savings. I hope I have helped implant some useful ideas.…
Property Asset Management: Property Investment Strategy – Part One of Four
Property Asset Management: Property Investment Strategy – Part One of Four
Every real estate investment’s performance is composed of a mix of equity-like and debt-like behaviors. From a Property Asset Management standpoint, investment funding is composed of both private and public equity. It is the correlation of the debt and equity components to the funding source that enables us to define the four primary real estate investment structures.
Consider the case of a private real estate equity asset leased to a single credit tenant with a long-term triple-net lease. The payments on the lease resemble the fixed payments associated with a bond, not with equity. In-fact the value of the triple-net leased asset fluctuates in step with the same factors that influence the value of a bond or a mortgage, such as interest rate movements, inflation, and the credit worthiness of the tenant.
At the other extreme, an equity position in an empty, speculative multi-tenant property with short-term leases is driven almost entirely by equity forces. The building’s value from an equity tranche perspective is a function of supply and demand for space in a given market, at a given time. In-fact, the debt-to-equity composition for a property investment can change with time.
By way of illustration, take the triple-net lease in the first example. As the lease ages and approaches its expiration date, the property takes on a greater component of equity-like behavior and less of a component of debt-like behavior; and at the end of the triple-net lease, the property value is only affected by equity forces.
Commercial mortgages are utilized in Property Asset Management to carve out the debt-like behavior from the property investment. For example, the commercial mortgage-backed securities market carves up the cash flows from pools of mortgages to produce bond-like characteristics in the top-level tranches and more equity like cash-flow characteristics in subordinate layers. As property investment funding is composed of both private and public equity, investors typically define these debt and equity tranches with four primary real estate investment structures:
Equity:
* Private Commercial Real Estate Equity – held as individual assets
* Public Real Estate Equity – structured as Property Funds or Real Estate Investment Trust
Debt:
* Private Commercial Real Estate Debt – held as loans or commercial mortgages held in funds
* Public Commercial Real Estate Debt – structured as Commercial Mortgage-Backed Securities
These investment structures react to a common set of influences as well as to unique influences specific to each individual structure. It is the analysis of debt and equity components of each structure that enables property asset managers and their agents to effectively structure the portfolio to meet specific investment goals. In the next two articles, we discuss the debt and equity components for several different property investment objectives.…
Investment Portfolio Strategies – What You Need to Know! – 2011 and Beyond
Investment Portfolio Strategies – What You Need to Know! – 2011 and Beyond
The world of investment and finance is dynamic. After the recent credit crunch, portfolio managers have become increasingly aware of the need to review and change strategies to match the demands of today and the future. A portfolio consisting of stocks, mutual funds and bonds for example may not be the best mix today. Knowing the right strategies to employ in this highly unpredictable global financial environment is key not only to the portfolio manager but also their clients not forgetting other individuals and interested parties.
Over the years, investors have concentrated on having a portfolio diversified with stocks and bonds with a little percentage higher in favour of bonds. This is because investors saw stocks to fluctuate more than bonds; hence there was wisdom in holding such a balance in a portfolio. If the prices of commodities such as gold, oil, diamond, Ivory, etc continue to rise as being observed now, then inflation together with interest rates will also rise forcing bond prices to fall. The trend of commodity price increases shows no signs of coming down anytime soon.
For these reasons, it is relevant for investors in stocks to also hold a diversified stock that include stocks from other countries (international stocks). For the years ahead, the best portfolio will also include stocks from the oil and gas sectors including real estate not to mention gold- with little reservation. It is also important for investors to reduce their investments in bonds or invest in only short-term and medium term bonds whilst avoiding the investment of long-term bond funds. It will also be beneficial for investors to also hold portfolio that includes some carefully selected fixed and floating money make instruments.
It is also important also to note that investors with reasonably small amount of money to invest should avoid stocks since the dividends that may be realize from this kind of decision may not be enough to support an already bad financial circumstances. Also investors who will expect a return or profit every year should also avoid stocks since dividend payments and capital gains may not be guaranteed. This is because dividend payment is largely at the discretion of the board of directors who may decide to announce the use of the profits generated for more income generation activities supposedly in favour of the company.
If you really want value for money concerning your investments, then a portfolio strategy that employs the commodities above is the way forward for 2011 and the future. These will provide you with the balance to withstand all the economic turbulence.…
Palm Beach Florida Real Estate and Palm Beach Investment Properties
Palm Beach Florida Real Estate and Palm Beach Investment Properties
Palm Beach is a fully developed community, world-renowned for its extraordinary beauty, quality of life and small-town character. It is one of the most prestigious towns in South Florida. Henry Flagler founded the town in 1911. He was one of the founder of Standard Oil.
At only 14 miles long, The island of Palm beach offers amazing spaces and places. The Town offers fantastic sport fishing, exceptional golfing, the most exclusive country clubs and some of the world’s best boating. Nearby finds a private airfield for your plane and elegant horse farms… Polo anyone?
Even with such world class amenities Palm Beach never loses its intimate, community feel. The glorious weather alone is reason to live here! Wouldn’t you rather be soaking up the sun than shivering in the snow!
Palm Beach is considered an island. Beautiful beaches and the historic Par 3 give the island the feel that you are taking a vacation. The Town also has some famous residents. One of these famous residents include Donald Trump.
The Town’s Real Estate is some of the most sought after property in the world. The luxurious properties of this amazing island are owned by some of the most prestigious people in the world. These properties can be an investment as they tend to keep their value when the economy takes a down turn.
The Island Town has some of the most beautiful homes in the world. The island is not over-crowded so there is plenty of room for new residents.
If you want to know more about the luxurious properties in the Town Of Palm Beach Florida, consider talking to an expert like Susan Polan. She’s an expert in Palm Beach properties. If you are looking to buy a house in this prestigious town please go to her site and contact her.…
Three Proven Land Investment Strategies
Three Proven Land Investment Strategies
Investing in land is one of the oldest forms of investment. It has a history that literally goes back thousands of it’s still relevant today. With an investment in land you can make a down payment on a piece of property and watch it increase in value as the years pass. It’s not a get-rich-quick type of plan by any means, but it will allow you to safely park your money for long-term growth. Investing in land is not complicated; anyone can do it. You just need to plan a conservative strategy and then follow through with it. There are many such strategies you could use but we’ll take a look at three possibilities.
One simple land investment strategy involves purchasing a piece of real estate and making improvements to it. There are many different variations on this theme. In one example, a person could purchase a piece of land and clear the brush and rocks and use it for farmland. The land could be profitable each year as the owner/farmer grows produce and raises livestock. Such an investment could produce a lifetime of income and even be passed on to subsequent generations for further farm use.
Another simple land investment strategy could involve purchasing a piece of commercial real estate. The commercial real estate could be apartment buildings, office space, a manufacturing facility, a warehouse or any other type of real estate that could be rented to a tenant. The great thing about this strategy is that the owner only needs to put down a small deposit (usually around 20 percent) and takes out a note for the remainder. The monthly rental receipts are then used to pay down the note. Eventually, the tenants pay down the note in full for the owner and the monthly rental receipts become pure profit.
Yet another very simple land investment strategy is to purchase a foreclosure property to sell for a profit. In such a scenario the owners are unable to make the payments and the bank is making preparations to repossess the property. These homes can usually be quickly purchased for as much as 20 percent below value and then resold for a profit. An industrious investor can even make a few targeted improvements that can dramatically increase the value, resulting in greater profits.…