One trend we discussed in our monthly strategy meeting this week was the distinct lack of “quick flick” bargains being witnessed across both markets. Even the most seasoned of property investors are struggling to uncover the undervalued commercial assets that can be quickly renovated and flicked for a tidy profit.
The reasons we attribute to this seem to be two-fold. Firstly, relatively stagnant interest rates have resulted in minimal pressure on existing loans and a reduced number of distressed sales. Secondly, the high tenancy demand is pushing rents, owner confidence and owner expectations up on all but the least functional properties. Tightening lending criteria is taking some of the sting out of the owner-occupier market, but for investors, the key to big gains will most likely be found in turning an unfunctional space into a repurposed usable area.