Johnson Property Group

Off-market transactions a lure for many investors

The surging cost of living and rising interest rates have made us all take stock. Along with a
change of Federal government and no end in sight to the crisis in Ukraine, investors are
looking to areas that offer increased wealth protection and stable returns.
In these uncertain times, we are seeing more and more clients choosing to complete their
transactions off market.

This is where the opportunity lies in property right now.
Investors know that the prospect of a collapse also means an opportunity to get on to the
property ladder.

The major adjustments we’ve seen on the stock market in recent weeks have resulted in
some clients liquidating part of or all of their share positions and reinvesting in the property

Divesting stock market interests and adding to a property portfolio is perceived as a less
volatile approach to wealth creation at this market juncture.

Add to that the view that longer-term loans are a sensible choice, coupled with the added security measure of locking in a fixed interest rate for at least the next 3-5 years.

At Johnson Property Group (JPG) we know there is quite an art to managing existing
investment properties while at the same time taking the opportunity to divest, diversify,
and expand a portfolio.

At the moment we have several rural and regional clients who have recently purchased
commercial properties. These have been yielding 6.25 percent (net), showing that the
commercial sector has been performing well.

This, however, means stable commercial assets are becoming harder to find.

Commercial rents will continue to rise with inflation and CPI and this will equate to higher yields and asset values for property portfolios. 

Several of our rural clients have also invested in residential development sites and have
been experiencing 2.5 percent yields and excellent capital growth on the land component.

Features of these property investments include city views and all were selected because of
their proximity to leading WA private schools.

If you would like to explore off-market transaction opportunities, please contact me at
[email protected] or call 08 9446 6888.