Does anyone have any advice on buying commerical property? I am currently looking at buying an industrial warehouse, but this is a new area for me and would like to know what strategy and any tips successful commerial property owners have.
Thanks
ReneeDazzling is our resident Commercial expert so i am sure he will no doubt answer the post for you.
My limit is to financing them.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Renee,
You should speak with Chris Lang from Gardner and Lang. He has been assisting people to invest in commercial property for years, both through small private syndicates and individually. His contact details are:
Web Page http://www.gal.com.au
email: [email protected]Regards
Alistair PerryI am currently looking at buying an industrial warehouseHi Renee,
Despite Richard’s kind words, I am certainly no expert in the field. Our group has purchased 4 industrial titles (all warehouses) over the past 2 years and we have a long way to go to match some of the wily masters of the game who have been playing it for over 40 years. We are mere pups in the game.
It would help if you would describe the deal a little. What exactly are you thinking of purchasing.
In terms of general tips, our group uses the following guidelines ;
1. Ensure the value of the underlying land is more than 85% of the purchase price.
2. Ensure the land is less than 10km from the CBD.
3. Ensure the title is green.
4. Ensure the nett yield is more than your finance costs.We’ve managed to pick up our last three that fit the above criteria. They’ve basically been run down sheds / warehouses with awful tenants and no leases in place. After a whole bunch of confrontation, evicting, mucking out, repairing, advertising, negotiating, leasing and finally celebrating by re-valuing we have a few fundamentally good titles under our belt.
I wouldn’t recommend this approach for starting out. Our first was an industrial place with a 10 year +CF strata tenant already in-situ which allowed us time and money to learn the ropes. In that respect is has been good but the growth on that one has been poor due to the low land content. I’ve posted the details on that deal previously.
Good luck with your endeavours.
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