The Need More Than Ever To Have Professional Advice Coupled With Years Of Experience In Any Real Estate Transaction You May Be Considering
Covid-19 has produced a myriad of questions in relation to both the Commercial and Residential real estate markets.
These issues are not exhaustive and certainly do not provide answers herein, but should be noted as elements of change in market conditions that will be variable on a daily basis.
A distinct lack of commercial and residential activity across the board.
Commercial property managers have the hardest job in real estate in Melbourne currently, dealing with both sides of the spectrum from Landlord to Tenant.
Both ends of the market from a Vendor’s perspective seems difficult with uncertainty prevailing, hence a “wait and see” attitude now is seen across the board. Simply markets are static and looking for direction.
Federal and State government initiatives have provided necessary action but may be considered of a band aid nature. Introduction of the Commercial leasing Principles, Moratoriums and deferred payments of loans, unsecured SME Guarantee Scheme $250,000, and non-review of some existing facilities certainly assist in the short term but late 2020.
Lease representation will be required for both sides’ point of view in relation to such matters, as retention or occupancy, outgoings, land tax, current market rent reviews, determination of “face and effective“ rentals.
Realignment of all mortgage valuations taking into account Covid-19 and its direct effect.
Succession planning and realignment of all real estate holdings and levels of value.
How much of a drop in both commercial and residential real estate is envisaged after the health issue is in hand.
Realignment of rental levels post Covid-19, especially within the commercial real estate sector and across all sectors.
Reestablishment of lending criteria from pre 70% to post 40% Covid-19.
Retail sector, moreso Melbourne retail shopping strip centres, will be the biggest sector hit. How do I shore up my investment, if at all?
Overseas buyers diminishing having effect of residential market inclusive of apartments, housing and land, as well as other sectors such as education.
Private equity funding, those transactions of 12 months pre Covid-19, how are they standing up to value levels, and can I get my investment out if need be due to changing circumstance.
Commercial office market, changing demand levels and requirements.
Industrial strata industrial property investment, where are my returns now post Covid-19.
Café society within Melbourne to change and perhaps to never reclaim its past glory.
People transacting in the marketplace now are those that “need“ to rather than a “want”, offers based on this premise …
Repayment process provides a “pause” only, but ultimately monies are owed and still owed, with repayment required.
These are only some of the issues that the real estate industry needs to address. Remembering that we have come off a Banking enquiry in the last 2 year period, with interest rates at historically low levels, the real estate market as a whole, including both Commercial and Residential sectors, require acumen from professional advisors. In this market you don’t require the typical salesman of a rising market, you need a highly qualified party in your corner coupled with years of experience.
If you or your clients require a sounding board as to what can and should happen, don’t make a value decision based on impulsive and irrational decisions, call the writer now for a confidential discussion on your next move inclusive of advisory, sale or retention.