I don't frequent coffee shops and the like myself but my business does take me into the blue colllar industrial estates in and around Brisbane. I can tell you first hand, these have been gutted over the last 4 years. The for lease signs are a good indicator but many businesses are simply empty but with the old signage still in place so that a complex doesn't look like a ghost town.
It's a bit of real estate trickery I suspect. The owner may have 3 identical industrial units side by side, all vacant, but only one appears up for lease. It's a lot easier to rent out a premises if it looks like other business is being conducted there. A lot of these industrial areas were fabricators and suppliers to the construction industry and as it has gone down the tube, so have they.
There is no turn around in sight and soon I think we will reach some kind of critical mass. Very bad times ahead for Australia unfortunately.
A mate offered us her waterfront "Bennalong" apartment for a week which was spectacular but I hate to think what it costs to have sit empty for 8 mths of the year. (family, friends and business trips usage for other 4)
Never ceases to amaze me how well the place seems to be doing and the extraordinary prices people pay for what to me seems ordinary accommodation. Another gave us a water view room in Coogee for 2 weeks. Fabulous area but near $2 million for a shared wall house of not much better quality than the cheap red brick flat I rented in the 80's seems excessive to me, but people are fighting for them as the auction nearby we went to will attest. But hey, there are fantastic $5 Vietnamese pork rolls nearby, incredibly tender $11 steaks and $10 bowls of Assam Laksa that were so large I couldn't finish them. Multi million dollar property and fantastic cheap eats? Surely it should be the other way around.
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
A mate offered us her waterfront "Bennalong" apartment for a week which was spectacular but I hate to think what it costs to have sit empty for 8 mths of the year. (family, friends and business trips usage for other 4)
Never ceases to amaze me how well the place seems to be doing and the extraordinary prices people pay for what to me seems ordinary accommodation. Another gave us a water view room in Coogee for 2 weeks. Fabulous area but near $2 million for a shared wall house of not much better quality than the cheap red brick flat I rented in the 80's seems excessive to me, but people are fighting for them as the auction nearby we went to will attest. But hey, there are fantastic $5 Vietnamese pork rolls nearby, incredibly tender $11 steaks and $10 bowls of Assam Laksa that were so large I couldn't finish them. Multi million dollar property and fantastic cheap eats? Surely it should be the other way around.
Should of told me you were going earlier frank. Best eye fillet on the planet there, but its closer to $40.
For those that want to know its a restaurant called "sauce".
A mate offered us her waterfront "Bennalong" apartment for a week which was spectacular but I hate to think what it costs to have sit empty for 8 mths of the year. (family, friends and business trips usage for other 4)
That's just your poverty mindset kicking in frank. I'm sure if he was leveraged to the hilt and living on a knife edge like you it would have rented out and you'd have to have dossed down in a cheap motel. Sorry to hear you're out of work again. Slow old welders just aren't in demand these days I'm afraid.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
The two strip shopping centres near me, one rather small, and the other mid sized (anchored by Coles) have had a lot of tenants leave over the last 6-12 months (all in one go - assume rent increase/end of lease time). They've all been replaced as quick as a fit out could happen.
Most of the exiting businesses were either useless, or in a declining sector (eg newsagent). On the face of things it says my local economy is doing OK. But what incentives/terms were offered to the new tenants?
I was speaking to a fellow today who has run the deli section of a Westfield's shopping center for many years now , a couple of decades I think.
Anyway I remember speaking to him about a year of so ago and he told me he was selling up and retiring. He told me the rent was too much, he has since sold the buisiness. Back then, I asked him what thisthe lease was. Now this is in a westfields complex, but its not one of the shops , just one of those sections set up in the middle. The size would be about 10m x 5m, if that, less than 50 square metres. And how much rentwould you expect to pay, wait for it, $7,000 per week.
And today when speaking to him, he is still helping the new owner out a couple of days per week, I asked about rental increases, he just said its automatic, goes up every year at 5% increase. He said now he can sleep at night.
But just look at it, 7k per week, that's 364k per year rent, with 5% increases every year means he will be paying 382k next year and 400k the year after. And no wonder they cant do buisiness, these costs are before staff costs, power bills , insurance bills , government red tape and whatever other bullshit there is.
Don't know how people could expect it could continue like this. Our wages are the highest in the world and I dont see how they can go any higher on a blue collar worker and either will white collar workers who will just end up replacing any blue worker jobs left as they are more qualified, even though they dont need to be.
This is another problem we face, where white collar workers without jobs will end up replacing what blue collar jobs are left, and the blue collar worker will be made near obsolete.
I will give you the example. Many university educated will be unable to find a job in their field . As a result, they will eventually apply for whatever job they can. They will apply for that bar position or retail postion or perhaps a factory or industrial placement. Because they have some formal qualifications, on paper that may be more appealing than somebody who may not.
So the end result is, the average white collar worker without work, will eventually replace what blue collar jobs that are left, the white collar worker then lives with less wages than expected and the blue collar worker is forced into unemployment.
With our wages being the highest in the world, if they do not come down , this scenario will just continue as will overall job losses. No rocket science.
Commercial rents are a much bigger problem than wage rates, esp retail where wages wont keep you much above subsistance. Lots of the closed shops around my way were single/couple run joints, no employees, rents too high, foofall too small. The vampires are sucking the country dry and not contributing 1% to GDP in fact they are stifling it big time. I could not run my old buisness (1990's) these days for this reason. For cost cutting and saving the economy better to cut big time at the top, ie neg gearing, cap gain concessions, parasite exec wages and bonuses etc. After all their money just stagnates somewhere tax free whereas money forced to the bottom all gets spent and filters back up creating dynamism in the economy. ... As an aside to this the potential new dole rules will distroy half of Australias cowboy towns... most certianly more shops will close.
I don't frequent coffee shops and the like myself but my business does take me into the blue colllar industrial estates in and around Brisbane. I can tell you first hand, these have been gutted over the last 4 years. The for lease signs are a good indicator but many businesses are simply empty but with the old signage still in place so that a complex doesn't look like a ghost town.
It's a bit of real estate trickery I suspect. The owner may have 3 identical industrial units side by side, all vacant, but only one appears up for lease. It's a lot easier to rent out a premises if it looks like other business is being conducted there. A lot of these industrial areas were fabricators and suppliers to the construction industry and as it has gone down the tube, so have they.
There is no turn around in sight and soon I think we will reach some kind of critical mass. Very bad times ahead for Australia unfortunately.
The next trick is to put a "friend or relative" into a unit and "rent" it to them. Then sell the unit with a "good" tennant. Old tricks but i am an old dog. So bring it on baby. Peter
My understanding, and I am not another property guru selling $1000 property workshops, is that speculators can keep playing the property speculation game as long as they can rely on a strong middle class, "stupid" enough to pay for ever increasing rents/mortgages. The day this middle class starts struggling, the game stops. And what we see in the 1st city of the country is more and more retail and restaurants closing, including in premium areas. Ford, Holden and Toyota announced they are closing their factories, probably bringing down with them plenty of small businesses involved in the car manufacturing business. Then, there is manufacturing in general, like in Western Europe, which keeps being outsourced to India/china. China won't be affected by any financial crisis anytime soon, however, their growth pace gets slower, which means less commodities needs, which means mining business is going down too. Mining is not about just a few towns in the outback digging to pile up iron. How many financial and services companies based in Sydney are involved in the mining business ? I am a rather optimistic person. But I only see indicators that tell me that property prices can't keep going up. I once heard that the property speculation game is called the foolest game. As long as you can pass yr property to someone else for a profit, you win. The last dude to play loses.
I once heard that the property speculation game is called the foolest game. As long as you can pass yr property to someone else for a profit, you win. The last dude to play loses.
We could say the same about speculation in shares, gold, artwork, or anything really. All you are saying is an investment is only worthwhile if it returns a profit.
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