Just wondering if I could get some reassurance from the more experienced investors on this forum.
Details of this property is as follows:
Commercial Property – Retail Shop front in growth suburb of city with population of 500K.
74m2 total area.Total income between 25k & 27k
with total outgoings of $4k per year.
Price $310,000 and has current tenant.Any comments would be appreciated.
Cheers
WWaffles numbers appear on the surface to add up.
If you happy with the location and security of the property then the deal maybe ok.
Ask yourself if the tennant walked out tomorrow lease or no lease could you easily re-let the premises.
Also higher the land value high the land tax.Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap service.Richard Taylor | Australia's leading private lender
How long is the current lease?
As already suggested will the lease be able to be renewed easily?
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks you for your thoughts.
Am happy with future prospects of the area.Unsure of the lease though – need to discuss further with agent.Thanks again
WIs the rent figure including or excluding GST?
Waffles
An important point I learned with a commercial shop front……talk to the shopkeeper BEFORE you buy. You will find out a wealth of information about the shop, including how long they are planning to stay, how busy they are and other local gossip!
A lot of people over look this basic idea and miss out on important information.
Regards
SimonWaffles,
Have you read the lease in full yet ??
Don’t understand how the rent can float between 25K and 27K, is it dependent on something ??
Who pays the 4K outgoings ?? If it’s the owner I’d walk away.
25K – 4K ~ 6.77% nett
27K – 4K ~ 7.42% nettIf it’s the tenant, I’d still walk away…
25K ~ 8.06% nett
27K ~ 8.71% nettThere are way higher nett returns out there in the comm market than mid – 8’s.
My verdict – keep looking.
Cheers,
Dazzling
“Go hard or go home”
Hi Waffles,
How did you go with the purchase. Are you any closer on did ya bench it?
.
Good LuckDon Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
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