Hi Guy’s,
I have stumbled across a comercial investment opportunity and knowing nothing about it thought someone here might know what to look for.
Property is a block of 7 offices. Currently tennanted by both government and private businesses. eg Hairdressers ect. Cost around $400k
Gross returns about 75k a year.Questions I thought of:
1. Who pays utilities eg Electricity/ Water
2. Who pays cleaning?
3. Would I have to pay liability insurance or would the individual business pay that?
4. What sort of security would the bank require.All I have as security is one IP worth $120000 but I still owe $20000 on it.
5. Does the bank use the Commercail Property as security?
6. Can Property be used as Equity at a later time.Can anyone answer these questions and add to them if possible.
I figure that I would rather buy 1 property which has several income streams in one go rather then pay separate costs for say… several houses.
Thanks[biggrin]
You will always miss 100% of the shots you don’t take!
Hi Ronulas,
ask the REA for advertising stuff for the property. The should have a folder or something with current leases etc and outline any zonings and the like… at least the last few commercial we looked at did.
I can answer some of these Q’s for you;
1. tennant should pay these.
2. tennant
3. not sure
4. I read on this forum somewhere (from one of the brokers) that banks will lend between 60-75%
5. dunno
6. Hope so!Just check how the rents are increased. Are they linked to inflation, agreed periodical increases or …..other..
Hope this was some help for you. A Guru will be able to tidy up my ramblings and enlighten you.
[arrowhead]
Matt
Just thought of another – does the building have toilets? Are they in each shop or a common toilet block?
If common do they all pay for the up keep through a sinking fundetc or is this cost borne by the owner?
Matt
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