Johnson Property Group

Strategic advice for our savvy WA property investors

At Johnson Property Group (JPG), we get a great deal of satisfaction from the fact that our clients look to us for strategic advice about how to build a diversified portfolio of residential and commercial property assets.

It’s gratifying to have long-term relationships with savvy clients contemplating their portfolios.

We enjoy developing tailor-made strategies to deliver their goals.

Recently, one of our JPG clients got in touch, asking for some advice about a potential $1.8 million commercial property acquisition.

Before leaping into action, we like to ensure we’re across the whole picture.

First, we review the client’s entire portfolio. 

When we’re developing a plan of action, we want our clients to be acting from a position of strength. We work with them to understand why they want to buy. The reason and reasoning is important. 

As part of JPG’s due diligence, we need to ask our client, are you purchasing because you want to expand your business? Is it for investment? Is it to secure yield and cashflow now? 

We want to understand our clients’ aspirations. Do they want cashflow in retirement? Are they aiming to increase net worth? Are they simply wanting to expand or do they want to diversify their current portfolio?

The answers to these questions allows JPG to craft the right advice to ensure our clients are empowered to make decisions that work for them.

Adopting a strategy of direct commercial property investment has many advantages. 

If you own commercial property, the tenant pays all outgoings (rates, utilities and so on) which increases your yield. Rent reviews are usually in line with inflation, so there’s no income or yield downside for owners in a high-inflation environment. 

Another advantage of commercial property is that as an owner, you exercise your discretion over tenant selection and business activities conducted on your premises. You set the terms and conditions of the lease. This reduces risk.

And last, we like to remind our clients the most important aspect of any purchase, aside from land size, is location, location, location. 

In an environment of surging enquiry, strengthening yields and lower tenant vacancy, well-located commercial property is fast becoming a compelling answer to our clients’ investment questions.

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