INVESTMENT PICKS FROM HLB MANN JUDD

Written on the 8 March 2012

INVESTMENT PICKS FROM HLB MANN JUDD

CLOUDS of uncertainty are looming over the European and Chinese economies, but one financial adviser does not predict a disastrous year for Australia.

The domestic market could worsen if Europe fails to curb its debt crisis by mid-year, however, HLB Mann Judd director Andrew Buchan (pictured) believes there is still a lot to be positive about.

“The yield on stocks is pretty strong at 5 to 7 per cent. IT company Data#3 is managed well by John Grant, has nil or hardly any debt and recently carried out a share split giving 10 for every single unit owned,” he says.

“Engineering consulting company Cardno is also led well by Andrew Buckley, operating in a good niche and producing quite a good yield. Alliance Aviation Services listed late last year at a $1.60 and is doing well at $1.90, while Blue Sky Alternative Investments is a speculative find and will be interesting to watch.”

Interest rates are falling and returns on term deposits are smaller, with the average deposit interest rate being 5 per cent. Buchan views commercial property investment as a better prospect.

“You can pick up commercial property with pretty good yields of 7 to 9 per cent in industrial areas like Eagle Farm, West End, Douglas Street in Milton, Bulimba, Sumner Park and along the Gold Coast corridor. It is worthwhile investing if there is already a tenant on a long-term lease but the owner is looking to sell,” he says.

“We are keen on convenience centres with good multi-national tenants like Woolworths. You would want it leased out before buying. If it is due to develop with long-term leases you cannot go wrong. I would also not rule out business purchases from business owners via superannuation.”

Ipswich is becoming a growth hot spot with construction expanding to Springfield and the Ripley Valley. However, Buchan advises against investing in residential property for short-term gains.

“Residential property is okay if close to the city but yields are a bit low at 3 to 4 per cent before expenses. It is not our preferred vehicle because it does not produce much income,” he says.

“You do not want to invest in things and cross your fingers that it will grow and not cause loss of income.”

He also emphasises the importance of paying down debt, ensuring superannuation is appropriately invested and having income protection insurance.

“Our greatest asset is the ability to earn income and be appropriately insured,” says Buchan.


Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter