Barhar7, Have you considered a joint venture with a developer? If you have enough equity in the property and are willing and able to continue to service the debt a developer may JV with you. This could mean they put up the building cost and you split the profits. Not sure what area you're in or the details of the asset. We might be able to ass…[Read more]
Scott No Mates wrote:
Capitalise that at 7-8% and you can work out the extra value you've just created. ($10,000 pa in increased rent capitalised at 8% adds $125,000 to the property value).
….provided that it can be capitalised in perpetuity not just for the short term of the lease. That is, if the improvement wi…[Read more]
HI Sash, I have never seen a pattern emerge for a 'rule of thumb' percentage increase due to the many variables involved. I have however seen properties with no value whatsoever added to them when a DA has been obtained (wrong product for the wrong market at the wrong time – owner actually went backwards as getting a DA through is not cheap as…[Read more]
Hi Fredo,Commercial property is definitely more tricky than residential! Yields are far superior to residential property but this does come with increased risks. Vacancies are one of the biggest but like most property if you buy well you can minimise these. A big plus for commercial that I don't think has been mentioned yet is that you have fa…[Read more]
Best way is to use a tool like http://www.realestateinvesta.com.au – you can search for indicators that would suggest growth or a property that is undervalued or has additional opportunity (it's a paid service but worth it in my opinion)
Hi Deb,I haven't found anything else as good. RealEstateInvesta.com.au is not perfect and has a couple of bugs in it, but nothing else can search by the parameters as this site lets you – I use it to find properties that can be further developed, offer vendor finance and have prices reduced. http://www.realestateinvesta.com.au
Hi Keiko, if you are using your friends log-in details and they have a one user license then they will not be able to tell what properties you've been looking up. If you use the market appraisal tool then there are only so many per month that they will have included in their package. I'm not sure if any that go over the limited are itemised on t…[Read more]
Hi Hendrick,Personally I start with http://www.realestateinvesta.com.au – they source all real estate listings from all the major real estate websites and allow you to search with multiple parameters such as reduced prices, mortgagee sales, sales that are well below the median price point for an area, yield, vendor finance offerings, properties with…[Read more]
secureserver1 replied to the topic Someone wants to buy my investment property for unit development…What is a fair price here? in the forum Value Adding 13 years ago
marsmac, as a rule of thumb 3 level walk up unit blocks will typically cost between $1,400 and $2,200 per square metre to construct depending on the finish. So you can multiply this by the number of square metres you expect the units will have. As you might know, the floor space ratio's (FSR) for some of the zoning's in Parramatta council have r…[Read more]
Most commercial leases will state that you can sublease with Lessor consent, however the lessor cannot reasonably withhold such consent. Definitely something you need to make sure is covered in the lease agreement if you intend on doing it.
Nathopoly,You're share of profits is in the range. I've seen as much as 50% of the profits handed over if the original owner is willing to risk the entire value of his/her land if things go wrong. Joint ventures like this can be great as you save on the interest and require less equity. For what it's worth, most of the time in my exp…[Read more]